KYC API – How KYC as a service works

by Sumanth Kumar on December 8, 2022

APIs provide rapid and scalable applications for banking, payments, and other businesses that require identity verification for AML and KYC compliance.

In most countries, some firms are obliged by law to comply with AML and KYC. When such firms authenticate their consumers, APIs may provide a faster, simpler, and less expensive way to comply while fulfilling speed, security, and privacy demands. There are around 2,000 financial services APIs, with more on the horizon as big data, artificial intelligence, blockchain, machine learning, and other fields improve.

Seamless & Integrated Regulatory Compliance

The expansion of open APIs is being driven by two major factors: technology and regulatory compliance. Compliance fees might be too expensive. According to a recent study, the financial industry will spend around $37.1 billion on IT and operations for AML and KYC compliance in 2021, a 13.4% increase over 2020.

APIs can assist financial institutions in controlling rising compliance costs and meeting requirements while maintaining a competitive advantage.

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Using APIs for Identity Verification, AML and KYC compliance

There are various reasons to utilise an API for Identity Verification onboarding:

Provides a low-cost solution
Connecting to existing infrastructure expedites installation.
Easy to integrate with other apps
decreases clerical mistakes
Increases staff efficiency by allowing them to concentrate on difficult situations.
Reduces manual paperwork, which boosts employee morale.
Provides effective reporting and information flow
Because the process is digital, it reduces the strain of record-keeping.
Procedures are aligned among units, divisions, and operating businesses.
Allows for faster entry into new markets.
Reduces turnover by providing a seamless, quick client onboarding experience.

Deploying an Identity Verification API

An API-based compliance solution may help financial institutions develop more quickly, smoothly, and efficiently.

A single API connection can connect a financial institution’s system to a variety of identity data sources and services, including identity verification, ID verification, Document Verification, AML/CFT worldwide watchlists, and others. APIs that are country-agnostic can give access to hundreds of approved data sources, allowing billions of individuals and millions of enterprises globally to be verified.

The API was designed for scalability and flexibility, so it can satisfy future demands for features and extensions, such as covering more countries and accessing new data sources. The built-in intelligence of the API can minimise the number of fields that individuals must fill out during verification, minimising onboarding friction.

With quick identity verification, thorough API documentation, trusted and validated data sources, standardised data fields, and simple integration, financial institutions can accomplish AML and KYC compliance without sacrificing the user experience.

How IDcentral’s KYX solution uses customer-centric approach for KYC Verification

IDcentral’s flexible Digital Onboarding Solution comes integrated with the latest AI technology for accurate ID verification, precise Liveness Detection, and speedy Identity Proofing. Enable Remote-Digital Onboarding capabilities with our API based solutions which have variable levels of eKYC procedures according to your customer base and compliance requirements.