Why do governments need to use KYC verification?
With the introduction of technologies, customers, or in this case citizens, have changed their needs and vision of how governmental services should be processed. People have widely seen the benefits of technologies and expect fast and secure service with respect to their privacy. Fortunately, KYC (Know Your Citizen) accomplishes exactly that.
KYC verification secures that the person behind the screen is exactly who they claim to be. In this way, providing accuracy of the information, preventing identity fraud, and saving both governmental employee’s and citizen’s time.
The main idea behind e-governments is that the focus shifts from the government towards the citizens. It is the basis of creating citizen-centric governments and goes hand-in-hand with KYC (Know Your Citizen) verification.
How can governments use KYC?
While e-governmental services save time, KYC provides security. Know Your Citizen verification can be applied in multiple governmental sectors but let’s have an example from the public administration.
Currently, to receive services, the citizen should go physically to the administration and deliver all the documentation that is required. At the counter, the person should also verify that they are the actual owner of the presented documentation by showing their IDs to the employee.
Most often, the citizen is even asked to leave a copy of their identification document at the counter. However, all of this can be avoided through digitization of services and KYC verification.
The areas that can benefit the most from the implementation of KYC verification include:
- Public administration – Implementing KYC verification in the public administration will improve customer service, speed up the processing of documentation, help with the faster inclusion of immigrants and provide a solution for stolen identities.
- Healthcare – The healthcare system can also benefit from the implementation of KYC checks. It will provide fast and easy access to the person’s health history.
- Border control – Identity verification is already happening at the borders. However, there is always space for improvements. KYC can help increase cross-border mobility including, both physical and financial.
- Tax refunds – Performing KYC checks by tax authorities is a must, as it will help with the prevention of tax frauds, money laundering and other illegal financial activities.
With the rise of e-governments and digital transformation come the risks of cybercrimes and fraudulent activities. KYC checks provide additional protection to avoid identity deceptions and secure the correctness of the provided data.
That’s why with the shift towards e-governments, Know Your Citizen verification is becoming an unavoidable part of the digital public sector establishing a secure and safe environment for both the citizens and the government.