e-KYC Concept Enhances Secured Financial Services for Customers

This article first appeared in The Malaysian Reserve, authored by Nur Hanani Azman.Photo by Nafis Abman from Pexels

Electronic Know-Your-Customer (e-KYC) concept is the new buzzword for banks, financial services and insurance industry that looks into giving more secured financial services for customers.

Thanks to the e-KYC policy and guidelines by Bank Negara Malaysia (BNM) and Securities Commission Malaysia (SC), more players are actively taking part in this sector in Malaysia.

“There are many areas that will involve e-KYC or online identification (ID) verification in banking, financial services and insurance (BFSI), from account opening to financing facility application, investment account activation and e-banking/mobile banking activation,” said Innov8tif Solutions Sdn Bhd COO Law Tien Soon.

Founded in 2011, Innov8tif is an artificial intelligence (AI) company helping businesses to widen sales funnel, speed-up processes without paper and prevent frauds.

Law said with the rising cases of SMS one-time password (OTP) frauds, it is evident that SMS OTP isn’t necessarily the best second-factor authentication method.

Facial biometrics which is a part of e-KYC registration is the most secure method to protect customer’s identity and assets.

Law highlighted that from their experience of serving eight telecommunication companies (telcos) in Malaysia, telco is the first industry to have benefitted from digital ID verification — 24/7 realtime customer onboarding made possible.

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