In one of our articles, we talked about the role the internet is playing in business operations today. There are digital banks where a customer does not need to visit the physical office to perform transactions. Everything, from sign up to transacting, happens without paper. The introduction of this helps bring down operational cost and aids efficiency.
However, not putting place some vital foundation in place before launching can be very costly.
A comprehensive KYC procedure is one that, if not taken seriously, can bring financial and reputational damage to an online business.
Any business leveraging on the internet to perform its operations needs to know exactly who they are dealing with. A startup standing as a middleman, connecting two parties together to transact value needs to have a standard KYC procedure in place. The absence of this like we discussed in our previous article can bring doom and gloom.
Here are five reasons why your online business needs a comprehensive KYC procedure to identify and verify your customers/users:
- Better Decisions: How well you know a person determines the decisions you will be making regarding that person. Risk is controlled when a business is well informed of who their users really are.
- Business Hijack: We have seen the fall of many platforms online because of loss of user control. Marketplace platforms suffer most from this. Fraudsters pose as legit users, thereby swindling people of their value. KYC helps platform control who exactly they want on their platform.
- Financial and Reputational Damage: KYC is designed to check risk. The lack of it can bring financial doom like we mentioned above. It can also bring public ridicule.
- Preventive Measure: KYC helps you prevent illegal activities on your platform. JostKYC is one comprehensive KYC platform that actually prevents illegal access. Identity theft is becoming rampant but with the way JostKYC captures user’s information live, it will be hard for a criminal to be registered on your platform.
- Corrective Measure: People change. This is a truth we all know. A verified user can turn rogue and bring damage. The absence of a comprehensive KYC procedure like the one JostKYC offers, will not aid in recovery and then justice.
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