The expansion of KYC and KYP is a major talking point within the perspective of digital identity today. Several global nations are embracing digital KYC models or e-KYC portals. They are using the same for authentication and verification of users in a secure format.
Technologies such as DigiLocker, for instance, are changing mainstream engagement with KYC in most scenarios, filling up the gap in implementing complete digital identity and reliable verification/authentication of all citizens. It is also enabling remote authentication for transactions, services and so on.
The KYC full form is Know Your Customer while the KYP full form is Know Your Player. Reports estimate how several countries are taking the digital KYC route towards promoting higher inclusion and growth. A digital identity tackles the problem of people being excluded from development possibilities, new opportunities and services.
Of course, there is still some apprehension about the risks of data misuse or fraud. Yet, experts believe that multi-factor authentication, intelligent designs and better background verification can lower these risks greatly for the long haul. One aspect seems non-negotiable- Countries are realizing how digital KYC is a harbinger of equality and socio-economic progress.
Here are some aspects worth noting in this regard:
KYC ensures higher importance for procedures as compared to individuals while KYP ensures more importance for people instead. Such procedural aspects have been witnessed in the online gaming space which is a harbinger for future developments to come.
The expansion of KYC into a medium of digital identity and verification will ultimately encompass multiple categories of transactions. At the same time, there is a seamless flow of KYC into KYP and this will emphasize individuals as mentioned.
Ultimately, there has to be a process for sorting out complexities regarding multiple identities and seamless merging of the same for digital verification. The growth of these trends will continue and ultimately the issues may be ironed out as per industry experts.