Global trade with local rules: so you meet all KYC requirements via a connection
Published: 9 May 2022, 10:58 Updated: 10 May 2022, 11:59We live in a global economy, but the rules and technology around digital identification and customer knowledge differ markedly between different countries. This poses real problems for companies that want to enter more than one market. – We solve the problem by offering companies global coverage for automated digital identity verification of customers and users, as well as compliance with KYC rules (Know Your Customer), says Jason Coombes, COO at ZignSec.This way you can easily meet all KYC requirements in different markets via one platformThanks to the internet, it is today relatively easy for companies to copy, scale up and expand their business model to different countries. What is not as simple is to relate to different countries ‘solutions when it comes to verifying customers’ identities online. – In Sweden we use BankID and it works very smoothly here, but it is enough that you expand the business to Denmark, you must also be able to manage their e-identification, says Jason Coombes. – If you come to Germany later, they have another completely different system, not to mention the United States or Africa. In many parts of the world, digital identity verification still takes place with physical ID documents, which requires significantly more technical solutions for companies that want or need to acquire equivalent customer knowledge. Identity verification with a national e-identification such as MitID is in many cases not enough for full-fledged customer knowledge without being strengthened with, for example, PEP and sanction checks.
Different countries, different regulations
In some industries, manual handling of customer knowledge is still required because the regulatory requirements are so complex. But in most areas, such as identity verification, this check can now be done automatically. – The human eye is not as good at verifying ID documents as technical solutions are. Today, there is technology to both digitize and automate ID control, and our system recognizes more than 10,000 ID document templates from more than 170 countries, explains Jason Coombs.Jason Coombes is the COO of ZignSec. This means that no matter what system the country offers and no matter what ID document is used by the customer, ZignSec’s system can automatically, quickly and accurately verify the identity of the person on the other side. By offering this breadth of solutions, ZignSec becomes a “one-stop-shop” for companies that need help with identification solutions and the full range of services within Know Your Customer (KYC). – We work with an aggregation model, not only in the Nordic countries countries or the EU but worldwide.
Easier, more flexible and cheaper
And the benefits of this approach are many. Firstly, it will be easier, secondly, it will be safer. – Since we have several different solutions for each market, our customers will be less vulnerable if a system goes down, because then we will only connect to another solution.
Third, it will be cheaper.
– Because we provide larger volumes via our suppliers, this means that we can often offer our customers competitive prices. In addition, it will be easier for our customers’ finance departments. Instead of receiving seventeen different invoices from seventeen different countries, they receive a single invoice, from us. In addition, the regulatory requirements regarding identity verification and customer awareness will increase in the digital world. – These requirements do not only have to come from authorities. For example, sites for gig workers have begun to require identity verification to reduce fraud, and most countries are considering introducing authentication requirements for social media users. Add to that the requirements to tighten up the crypto market so that it does not become a lawless country, and you realize that it will be unsustainable for international companies not to have a supplier that offers technology for complete and global KYC compliance via a single connection.This way you can easily meet all KYC requirements in different markets via one platformThe article is produced by Brand Studio in collaboration with ZignSec and not an article by Dagens industri