Face recognition for E-KYC, the future of financial services?
The global financial services industry is adopting technology at lightning speed. Almost as we read this, 5 new companies are mushrooming in the fintech space and 2 financial service providers are either taking their company digital or bringing about technological innovations in service delivery. Virtual assistants, machine learning, AI, robots, voicebots, chatbots – the financial services industry has it all. Even KYC, a painful process of identity confirmation by physical verification of documents has gone digital now.
With increase in cyber crimes, fraudulent transactions, errors in technology and lack of patience of potential customers to wait for the KYC process to finish – the next step in making the financial services industry more futuristic is the introduction of facial recognition for E-KYC. Currently, ‘digital KYC’ is done by uploading physical copies of documents along with a verification video call and a digital signature to complete the process.
Although financial service providers are welcoming the idea of facial recognition for e-KYC, in India, this is a far away reality. Closer to home, OCBC Bank in Singapore was one of the premier financial institutions in Asia Pacific to adopt facial recognition to improve its quality of service delivery.
The facial recognition was done seamlessly by a robot that would recognize the clients in real time as they approach the customer service desk in a branch and send their information to the concerned relationship manager – without having the customer to stop or look into the camera. The facial recognition feature also allowed customers to make payments, undertake transactions and verify documents without lifting up a finger.
Facial recognition features, once implemented by the financial services industry will enable customers to log in to the service providers portal and conduct transactions without typing any buttons or remembering any long passwords. The portal, enabled by AI can immediately scan the face and biometrics of a user and login to the account. Further, a study by a leading payments and identity verification company stated that the average patience a customer has to wait for the KYC process is less than 60 seconds. A service provider stands to lose a customer if his login process is not completed quickly. Facial recognition can solve this issue seamlessly. It is quick and doesn’t require much effort – something that the millennial generation would totally adore. It is also a great initiative for people with disability or individuals who for any reason cannot complete the traditional KYC process.
Currently, globally the digital revolution is at its peak. The current generation has already been termed as the smart phone generation. Introduction of facial recognition will enable customers to access financial services from the comfort of their smart phones thus increasing overall user experience and profits.
Having said that, though facial recognition can be very well be the defining development to change the level of service delivery for the financial services industry – every technology comes with its fair share of disadvantages. Even facial recognition though implemented with the utmost level of security can fall into a soup of errors. Financial institutions while implementing this technology should take precautionary measures to avoid any kind of untoward security breaches. Limiting the value of transactions and creating high level security software are some methods that institutions can take on to battle cyber security challenges that come with this technology. Apart, from these hurdles – it is safe to say, that the very next milestone for the fintech industry touch is to empower its customers to send money to their peers just by giving a beautiful smile at the phone camera.