What is the e-KYC system and why is it different from traditional KYC?

e-KYC vs KYC: Key Differences

Currently, identity verification is changing rapidly, especially in the finance and banking sectors. Institutions have stopped using traditional KYC methods that require face-to-face meetings and have adopted e-KYC (Electronic Know-Your-Customer) instead, which is a digital identity verification system that can be done from home.

The main difference is that traditional KYC uses physical documents and manual identity checks, which can be time-consuming, while e-KYC relies on digital technology, making the process faster and much more accurate.

e-KYC Definition: Electronic Customer Identification System

e-KYC (Electronic Know-Your-Customer) is a method of verifying and identifying users through electronic systems and digital technology, offering greater convenience than visiting an officer in person.

Users can verify their identity themselves via electronic devices without filling out handwritten documents or visiting a branch. This system has been widely implemented in the banking sector, government agencies, and various financial companies across Thailand.

There are 3 types of e-KYC identity verification systems

1. Biometric Authentication (Biometric Verification)

This method uses personal physical data to confirm identity, such as fingerprint scans, facial recognition, or iris scans. Common applications include unlocking smartphones or verifying identity in mobile banking apps.

2. Optical Character Recognition (OCR)

This technology scans and converts data from documents like ID cards or bank account statements into digital format, reducing manual data entry time and increasing processing accuracy.

3. National Digital ID (NDID)

This system is used by most Thai banks to allow users to verify their identity online by scanning their face and ID card through a system connected to government databases.

What standards does e-KYC identity verification use?

e-KYC identity verification relies on multiple layers of information to ensure the user is genuine.

For individuals, required data includes national ID number, full name, date of birth, address, phone number, email, and facial scan.

For legal entities, data such as company name, ID number or registration number, and office address are used.

Additionally, there’s a key component called authenticator, which includes:

• Something you know — a password known only to you
• Something you have — an ID card or identification document
• Something you are — physical characteristics like fingerprints

Advantages: Why do people choose e-KYC?

Time and Cost Savings

Users do not need to visit branches or offices; they can do the process at home via smartphone or computer. This reduces travel costs and resource use, eliminating paper documents.

Increased Security

Data storage systems employ advanced digital encryption measures to prevent document forgery after registration, reducing fraud risks.

24/7 Availability

There are no time or location restrictions; users can register at any time—whether for investing, opening accounts, or purchasing insurance.

Disadvantages: Issues still to be addressed

Age Group Disparities

Elderly individuals and those unfamiliar with technology may face difficulties using the system, which could lead to increased risk of deception.

Privacy Risks

If the system is not secure enough, personal data could be misused.

Summary: e-KYC Brings Future Identity Verification to the Present

e-KYC demonstrates how digital technology can significantly improve user experience. The system combines convenience, speed, accuracy, and security, making it suitable for banking, financial institutions, and government agencies. Moving forward, the adoption of e-KYC will continue to increase to provide better and safer services for the public.