In an era dominated by digital banking and online services, banks are increasingly facing challenges related to fraud, cybercrime, and identity theft. While online KYC (Know Your Customer) processes have simplified account opening and other banking services, banks are now emphasizing physical verification to strengthen security.
Why Banks Are Reintroducing Physical KYC
Rising Cyber Threats:
With fraudsters employing sophisticated online tactics, relying solely on wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital verification can expose banks and customers to risks.
Account Security:
Physical KYC ensures that the person opening the account or availing services is genuinely present and identifiable, reducing chances of impersonation or fraudulent accounts.
Regulatory Compliance:
Regulators are also encouraging face-to-face verification for certain types of accounts, especially savings accounts and high-value transactions, to maintain integrity in the financial system.
What This Means for Customers
Customers may now need to visit their bank branches in person for some services that previously required only online KYC.
While this may seem inconvenient, it enhances overall safety for both banks and account holders.
The Balance Between Convenience and Security
Banks are trying to strike a balance between digital convenience and fraud prevention, combining online KYC with selective in-person verification to ensure robust security.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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