Business Challenge

Majority of the banks encountered significant challenges with its traditional in-person Know Your Customer (KYC) process. The manual approach leads to inefficiencies in cost management, time utilization, and customer experience. Key issues include:

• High operational costs: In-person meetings require extensive resources and logistics, leading to increased operational expenses.
• Time-consuming process: Managing large volumes of clients across various locations is time-consuming and often leads to delays.
• Decline in customer satisfaction: Missed appointments, delays, and rescheduling due to logistical issues negatively impact customer satisfaction, leading to frustration and reduced client engagement.

Solution

The Itera Research team developed a comprehensive eKYC solution to streamline and digitize the entire process, enhancing both operational efficiency and customer experience.

Open Architecture

The solution introduced a digital workflow to replace in-person meetings, significantly reducing operational costs and logistical complexities. 

Clients can now verify their identity online, streamlining the process and reducing the need for physical interactions.

FaceID Technology

Central to the solution is advanced FaceID technology, leveraging tools from Amazon, Visionlabs, Microsoft, and Meta. 

This biometric verification ensures secure and accurate identity checks by allowing customers to authenticate themselves with a selfie. This enhances security, speeds up the verification process, and provides a seamless experience for end users.

Data Integration and Flexibility

The system integrates with external sources, such as national databases, or internal banking systems, depending on whether the KYC process is for a new or existing client. When external integration is unavailable, the solution can extract information from scanned ID documents. 

This flexibility reduces manual data entry, minimizes errors, and accelerates the KYC process.

Customizable Web Interface

The platform features a customizable web interface, allowing banks or other financial institutions to maintain consistent branding across their digital channels. Through a white-label approach, banks can align the interface with their design standards, ensuring a seamless and cohesive customer experience.

Flexible Implementation Options

The solution offers two implementation paths: a web-based SaaS option or an API integration, allowing banks to integrate the KYC solution into their existing digital platforms seamlessly. Both options provide customization and scalability.

1. SaaS implementation: The web interface is tailored to the bank’s branding, including color schemes, typography, and logo placement. The system integrates with core banking systems, followed by testing and deployment.
2. API integration: Using REST APIs and pre-built libraries for iOS, Android, and web platforms, developers can quickly integrate banking functionalities into apps and websites. The solution supports seamless connectivity through standardized APIs, ensuring easy integration with existing systems.

Security and Data Protection

The KYC solution is customized to meet each bank’s specific security needs. Key measures include database encryption, certified financial data centers, and multi-factor authentication, with biometrics as a core element. 

For mobile apps, additional security layers such as PIN codes or one-time passwords are implemented. Strong security practices are prioritized at every step to protect sensitive data and build trust in the digital onboarding process.

KYC Process: Step-by-Step

• ID entry: The client begins by entering their ID number, depending on the country of origin, e.g. a Social Security Number (SSN) in Canada or an IDNP in Moldova.
• Facial recognition: The client takes a selfie. The system then processes the image and matches the facial data with the ID information provided, ensuring accurate identity verification.
• Data retrieval: Upon successful FaceID verification, the system automatically retrieves the client’s existing data from external sources such as national databases, or internal systems, depending on the context of the KYC process.
• Data review and update: The client is prompted to review the pre-filled information. They can add additional details or correct any data that has been auto-filled by the system.
• Confirmation: Once the client confirms that all the information is accurate, the KYC process is complete, and their profile is successfully verified.

Key Features

• Seamless online identity verification allows clients to complete the KYC process remotely through secure FaceID technology.
• Customizable web interface offers a white-label solution tailored to the bank’s branding, including color schemes, typography, and logo placement.
• Flexible data integration supports retrieval of client information from both external national databases and internal banking systems, reducing manual input and improving accuracy.
• SaaS and API integration provides multiple implementation options, ensuring seamless integration into existing digital platforms and mobile apps.
• Real-time data processing to pull relevant client data for quick verification.
• Enhanced security, utilizing advanced biometric technologies to ensure the highest standards of security for identity verification.

Tools & Technologies

• FaceID technology
• SaaS platform
• REST API
• External data integration
• Web view integration
• Developer libraries

Results

The KYC solution developed by the Itera Research team has already been implemented by multiple banks in Moldova and globally, delivering significant improvements in operational efficiency.

1. Increased customer conversions: The streamlined digital onboarding process enables easy remote completion, leading to higher customer conversion rates.
2. Simplified data update process: With compliance to KYC regulations, the solution simplifies customer data updates while maintaining high security standards.
3. Enhanced cybersecurity: Robust authentication methods reduce the risk of social engineering attacks and fraud.
4. Improved customer satisfaction: Faster and more convenient KYC processes boost customer satisfaction and engagement, reinforcing trust and loyalty in the bank’s digital services.