Ride-sharing options are becoming increasingly popular. Some experts think that in the future, fewer people will own cars and instead opt for sharing rides or utilize self-driving cars instead.
In recent times, many companies have started remote vehicle rentals: in which the customer simply picks up the vehicle at a specific location, hires it through an app and is ready to enjoy it. These companies need to verify the identity of any driver who wants to use their vehicles. Having the ability to do this digitally can make the process faster, more efficient, and more accurate.
Therefore, the KYC and the identity verification take on a very important role in situations like these, since that allows digital verification of the identity of new customers.
What is KYC and digital identity verification?
KYC, or “Know Your Customer,” refers to a set of standards and regulations implemented across various industries to ensure that businesses know the identity of their customers. These policies are especially important in industries where someone may rent expensive equipment, such as vehicles. KYC helps companies assess customer risk based on various aspects, which could include financial information.
Digital identity verification is a process aimed at making KYC faster and more efficient. The process can take various forms, including identification and biometric identification. Other popular methods include using a one-time pin (OTP) or knowledge of the database.
KYC and remote vehicle rental
In recent times, car rental companies have reported numerous cases of vehicle damage, as well as theft. In most cases, theft and damage are possible because those responsible use fraudulent documents and companies cannot trace them. Therefore, it is essential that they know exactly who they are renting to.
The traditional system of verifying a customer’s identity is slow, paper-heavy and not entirely accurate. As technology has improved, new identity verification systems have emerged, where the company and the client can conclude their agreements digitally. A digital verification system is quick and easy, as well as being much more accurate than traditional methods.
With KYC in mobility, companies in the industry can ensure that they “know” their users, since they have to verify and validate their identity before accessing the vehicle. In the mobility industry, KYC focuses on whether the customer has a valid license for the type of vehicle they want to rent, at a minimum. Thus, KYC helps companies to identify fraudulent or false clients before entering into an agreement with them.
If your company rents remotely, automating this part of the registration process for new users should be your priority. There is no better way to ensure the security of your fleet than with proper digital identity verification.
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