The concept of Know Your Customer (KYC) dates to the early 1990s. KYC involves procedures to verify the identity, suitability, and risks involved with customers. Document and picture capturing used to be completely manual, with a lot of back-office work. This resulted in processes being extremely slow and backlogs being created, which had a significant impact on institutions which heavily relied on KYC for vetting customers.
Through digital transformation, the KYC process has evolved to become more robust and sophisticated. Moving away from a paper-based approach and embracing a digital-first approach resulted in biometric verification, AI and ML based document verification and other innovations drastically decreasing the time required to conduct a KYC check for customers.
The most noteworthy impact of eKYC, perhaps even more than the enhanced customer experience and convenience, is the greatly improved security that the eKYC process affords. With identity proofing through customer unique document and knowledge possession (two factor authentication) and biometric authentication, KYC has never been more secure. In the past, KYC processes were often standalone procedures that were conducted separately from other business processes. Today, many businesses are integrating their KYC processes with their overall risk management strategies.
Before delving into the specifics of eKYC and digital onboarding, it’s important to understand the MVNO landscape. MVNOs are companies or entities that provide wireless communication services without owning the physical infrastructure of a mobile network. Instead, they lease network access and services from existing mobile network operators (MNOs) to help businesses launch their mobile services. From traditional mobile services to IoT and eSIM based services, today’s MVNOs are looking to offer differentiated customer experiences to serve the changing needs of the customers. They are often known for offering competitive pricing, specialized plans, and flexible services to niche markets.
The Need for Efficient Onboarding
With the growing need for secure remote onboarding and eSIM activation services, efficient customer onboarding has become critical for MVNOs success for several reasons:
eKYC: The Game-Changer
Electronic Know Your Customer (eKYC) is a technology-driven process that enables businesses to verify the identity of their customers digitally. For MVNOs, eKYC offers several key benefits:
As the telecommunications industry continues to evolve, MVNOs that embrace eKYC and digital onboarding will gain a competitive edge. By offering a frictionless onboarding experience, MVNOs can attract and retain customers more effectively, comply with regulations, and reduce operational costs.
Implementing digital onboarding with eKYC involves several key steps:
However, it is important that MVNOs find the right eKYC partner — as local regulations are fragmented and vary in each country. Not all providers have “one-size fits all” solution to fulfil all KYC requirements.
Introducing Tata Communications MOVE eKYC Hub
Given the relevance and importance of eKYC, Tata Communications provides eKYC Hub for global coverage and ease of integration. Part of the Tata Communications MOVETM portfolio, the eKYC Hub makes the identification and verification process as easy as capturing ID image and taking a selfie, supported by pre-defined workflows and business processes. The eKYC HUB makes sure that the clients/customer are who they claim to be.
An MVNO can leverage eKYC Hub single interface to offer global eKYC coverage for its local and/or global use cases. With ease of integration, an MVNO can focus on customer experience and deliver a unified global experience.
Customers can get onboarded in a few simple steps from anywhere in the world.
In an era where digital transformation is reshaping industries, MVNOs cannot afford to overlook the importance of efficient onboarding processes. eKYC and digital onboarding simplify the customer acquisition process, while ensuring security and compliance. By harnessing these technologies, MVNOs can position themselves for success in an increasingly competitive market.
To learn more about how Tata Communications is helping drive mobile-enabled IoT and MVNO growth, click here.