Neobanks in Canada are growing fast as digital banking is rising and customer onboarding is growing every day. With the rapid growth in digital banking, there are challenges of strict regulatory compliance with FINTRAC and identity fraud risk. The Canadian laws and regulations are against money laundering, terrorist financing, tax evasion, and other illegal activities. Fraudsters, money launderers and cybercriminals always keep targeting financial sectors by using synthetic identities that contain some actual and fake information. This is the scenario where KYC providers play a massive role in neobanks’ secure operational process and stay ahead of the curve.
Why Do Neobanks in Canada Need KYC Providers?
Neobank is a digital financial business where frictionless customer onboarding is paramount for a smooth customer experience and a secure business operational process. Fast customer onboarding for neobanks enhances the operations, and to make it possible, robust KYC solutions are significant. KYC providers in Canada provide identity verification solutions for neobanks to determine whether the customer’s identity is legitimate or not. It gives the surety of legitimate users and does not allow access to the sensitive information.
How KYC Providers in Canada Help Neobanks Prevent Fraud?
KYC providers in Canada provide advanced KYC API to prevent neobanks from high-risk customers, and as a result, it reduces the risk of financial crimes.
Real-time Identity Verification:
Top KYC providers in Canada assist with real-time identity verification methods, such as video KYC, which assist in authenticating the identity of the customer on a live video call. It assists in real-time identity verification for neobanks and reduces the risk of deepfakes. It prevents fraudsters who use synthetic identities and takes action against them.
Evaluate Risk:
KYC process assists in identity authentication for neobanks in Canada, and the collected identity information during the KYC check assists in AML verification that ensures background verification. Both KYC and AML verification assist in business risk evaluation during the onboarding process. It assists neobanks in making business decisions and preventing financial crimes.
Transaction Monitoring:
Transaction monitoring is also a real-time identity verification that assists in identifying suspicious transactions related to money laundering and prevents bad business reputation in the competitive market. KYC providers in Canada offer transaction monitoring solutions that help neobanks to prevent fraud.
Quick Onboarding:
Automated KYC authentication ensures the legitimacy of customers instantly and delivers accurate results. It helps in fast customer onboarding and reduces operational costs.
Regulatory Compliance:
A KYC service provider in Canada assists in complying with FINTRAC compliance and prevents legal procedures for non-compliance.
Features that Should Look For Ideal KYC Provider in Canada:
Customized Solutions:
Every KYC company is not the same; some providers provide only ID document verification solutions, and some of them assist with background verification. Always choose the KYC company that has customized identity verification solutions, including a KYC solution, AML solutions, age verification solutions, document verification solutions, business verification solutions, PEP & sanction list verification solutions. Neobanks also need KYC and AML verification for quick onboarding and background verification.
Prefer Advanced Technology:
In the digital age, artificial intelligence and machine learning algorithm-based identity verification solutions authenticate the identity of customers precisely and accurately. Facial recognition, liveness detection and OCR scanning of ID documents assist in identifying deepfakes and synthetic identities. Therefore, prefer the KYC company that has advanced technology, which keeps neobanks ahead of the curve and safeguards them from advanced threats.
API Integration:
API integration should be easy so that it can integrate with any existing system. Choose the KYC solutions provider that provides a plug-and-play type of KYC API to authenticate identities.
Customer Support:
Customer support is also an important factor that comes into play when facing technical issues while using the KYC API. If the KYC provider offers 24*7 customer services, then it may resolve quickly without any delay in the onboarding process.
Multilingual Support:
If the digital banking system operates globally, then the role of a multilingual supported KYC API will also be huge. Therefore, select a KYC company that also supports multiple languages to operate business smoothly across borders.
Well-versed with Canadian Compliance:
Prefer the KYC provider that are well-versed with Canadian compliance and keep updating their KYC API accordingly. It assists neobanks in keeping compliant according to the FINTRAC standard.
Scalability:
Look for the KYC provider that is capable of scaling the growth without any technical compromise as the customer base increases.
Stay Ahead of Fraud by Choosing the Right KYC Provider for Canadian Neobanks:
A weak and slow onboarding process always hurts the digital payment business. Build a robust security system that does not allow illegitimate customers to access the sensitive information. Invest in advanced technology-based identity verification solutions that act as a fraud prevention system against money launderers, fraudsters, and financial criminals.
Customer trust is paramount for Canadian neobanks, and by choosing the trusted KYC provider maintain that customer trust. Authenticate the identity of the customer during the onboarding process and secure business operations. Advanced KYC API ensures the legitimacy of customers and prevents financial crimes. KYC Canada is one of the trusted and reliable KYC companies that provides customized identity verification solutions for financial and non-financial businesses. Therefore, choose a trusted KYC partner like KYC Canada and stay ahead of fraud and safeguard digital payments.
