If you knew the term KYC – Know Your Customer or Know Your Client – then might have wondered who needs online KYC? To be specific, which industry and what kinds of businesses need KYC solutions?
Online KYC – Is It By Mandatory or By Choice?
There are several industries that need to do KYC by law, and some that can selectively choose to do KYC. Financial services, majorly banks and VASPs, are the ones that need to meet compliance by law. And others can freely choose whether to introduce KYC to the company. The others industries are but are not limited to, sharing economy, gaming and entertainment, e-commerce, telemedicine, and trading.
Financial services such as banks and virtual asset service providers(VASPs) need to meet the compliance set by the government. The law is enforced on financial industries in order to provide a safer environment for people locally and globally. In order to limit frauds that may be caused by anonymity, KYC whether face to face or online remains a mandatory factor.
With online KYC solutions, financial companies not only can identify identities but also keep track of the information regarding fraud checks and AML (Anti-Money Laundering) screening.
The major industry that selectively chose to do online KYC would be a sharing economy. As the sharing economy is a community-based platform, where they provide a platform for ‘the users’ to interact, trust becomes an important factor.
Sharing economy where the community shares rides, homes, and working space, knowing who they say they are provides a safer environment by verifying identities.
Businesses operating online marketplaces also can ensure a credible reselling environment among buyers and sellers by online KYC. Crowdfunding and screening freelancers are also a part where trusted users can provide a trustworthy business relationship with potential users and clients.
Online Gaming and Casinos
Some countries require players to get their identity verified in order to participate in online gaming and casinos. In some countries, it is by obligation from the gaming operators to verify user identity, age(birth of date), location, and source of funds. In this way, the platform can give a space that is free from any online fraud and identity theft.
Safe Environment for the Business and the Customer
Whether your business stays in the compulsory or optional category of online KYC, being able to remain a trustworthy business relationship is crucial. Stay safe from any possibilities such as fraud, identity theft, or anonymity by verifying your users and customers by online KYC.
Argos KYC can help your business to start building a strong and reliable relationship with verified and reliable users. Verifying over 210 countries and more than 1,600 ID types by AI, we ensure global service coverage. So no matter where you are, and where your customers are in the world, Argos KYC got you covered. Identify anyone at any time anywhere.