eKYC against fraudulent loan applications via App

Mar 26, 2024
Borrowing money through apps is becoming the top target of fraudster. Faced with this challenge, eKYC has emerged as a solution that can alleviate the "headache" of personal credit fraud.

In the realm of online lending, controlling borrowers’ information has become significantly more challenging. Various entities have resorted to fraudulent tactics such as forging personal documents (ID cards, driver’s licenses) and fabricating financial statements to obtain loans through apps and then vanish with the funds. Indeed, banks and lending institutions have incurred substantial losses due to bad debts from online lending, which is why many banks have been cautious in promoting this lending method due to concerns regarding borrower identification.

Addressing this challenge, eKYC is being employed to swiftly ascertain and verify the identity of loan applicants, thereby increasing the success rate of converting customers. The process can be completed in less than five minutes.

Customers undergo the following verification process:

  • Step 1: Customers input required personal information into the app and selected documents for verification. These documents may include passports, driver’s licenses, or identification cards.
  • Step 2: OCR technology extracts all customer information, which customers can review and correct if necessary. Subsequently, customers are prompted to verify themselves via selfie or selfie video.
  • Step 3: In cases where Liveness detection technology and Face matching technology confirm that the customer’s image from the selfie video matches the picture on the provided document, the verification is successful. If unsuccessful, the customer must undergo re-verification.

The eKYC verification process is further automated with the assistance of Artificial Intelligence (AI). Any attempt to falsify personal information or use fake accounts for loan applications can be detected in real-time, which enhances customer trust in the digital banking services offered by financial institutions.

SmartKYC, developed by RUNSYSTEM, is one of the leading electronic identification solutions based on AI technology. SmartKYC boasts numerous outstanding features, surpassing other products on the market, including 99% accuracy in OCR, Fraud Check with the ability to flag nearly 30 signs of document and facial forgery, and Face Matching for facial recognition spanning up to 15 years to meet high business and security requirements of banks.


Smart Solutions – Digital Transformation Ecosystem

A subdivision of RUNSYSTEM



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