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The Importance of e-KYC

– The Star

A look at the need for banks' Know Your Customer processes to be digitized in Malaysia

Identity verification by banks is increasingly moving online, thanks to the high rate of ownership of smartphones with cameras and biometrics. Some banks in Thailand, Philippines and Indonesia are steadily moving online, while the process in Malaysia lags behind.

“No doubt, regulation is crucial in facilitating the journey towards e-KYC. This is to ensure that e-KYC systems have the proper safeguards in place and necessary reporting lines back to the central bank.”

The article notes that the need for e-KYC is more apparent than ever during the coronavirus pandemic. It says Malaysia’s central bank is on the brink of releasing guidelines pertaining to the process.

If that is the case, it is crucial for the new guidelines to act as a catalyst for Malaysian banks to hurriedly embrace innovations such as e-KYC into their banking operations in order to stay competitive, in a fast changing landscape

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