KYC — Customer Identification, classification and data capture that torments the unbanked
There’s a myth among the ‘banked’ or financially capable, that the unbanked want and need the same financial securities as they do.
The ‘unbanked’ a globally recognised group of humans — the majority of the human species — that do not have access to or utilise a bank account for their financial transactions. They are largely homeless, transient, refugees or nomadic due to various circumstances. Their personal information — home address, financial status, telephone number etc are unknown, i.e. unrecorded as most don’t have the luxury of a permanent address, phone etc.
The unbanked are of huge interest to all major corporations, governments and institutions as they are largely ‘un-captured’. This means their information isn’t stored anywhere.
Clever Unbanked!
Their information, unlike the financially capable, isn’t recorded anywhere, as there has been no way for the controlling bodies to find these people, capture their information, and keep track of them. No data breaches there! For that very reason they’re an extremely valuable commodity in the new economy. Consumers are needed to keep economies going, new consumers are vital, and the unbanked offer absurdly large returns for the astute within the realms of control if they are correctly handled. Their information, gathered and utilised affords massive ROI with an estimated value of $380 Billion (in 2017).
Who’s protecting the Unbanked? How do they create economic value for themselves without relinquishing their anonymity?
The savvy consumers who read / listen to news or are involved in business, know that their information has been abused by certain large technology companies, corporates as well as governments and institutions. The unbanked, although very alert to the repercussions of their information being stored and shared: their safety, taxation, and legalities of their location (i.e. the transient and refugees travelling to safety across borders and living in foreign countries without ‘permission’) are all at risk.
So why would the ‘unbanked’ want anyone to find them? Why would they register their details anywhere? And how would they anyway, without a permanent address, this being a key factor in the identification process?
KYC — Know Your Customer has long been an identification process whereby companies can identify consumers — claimed as an anti-fraud scheme, which works to protect everyone, it also provides very valuable information to the gathering company/entity.
IS Economic Inclusion possible / plausible without KYC?
As a transient, it’s incredibly difficult to become a part of the latest economic development — Crypto Currency — although designed to engage the global masses, enabling everyone to become a part of the economic shift occurring, the KYC process is a massive obstacle.
KYC is an elitist process removing any opportunity for the majority of the population. The process requires:
a) a Home Address
b) a Passport or ID
c) a Camera/Phone to photograph Person + ID
d) Matching Names: Used and Legal
The unbanked usually don’t have a permanent / recognisable address, they’re usually refugees without passports or legal identification documents as most won’t have the finances to apply for these documents. Many, in particular in Africa don’t use their legal/given names to identify themselves so when it comes to online profiles matching their legal documents it becomes incredibly confusing.
Artificial Intelligence & Data Collection :: Now Standard but what of the anonymity issues and abuse of personal information?
Could Ai be used to positively benefit the ‘unbanked’ without demonising them or destroying their anonymity, potentially placing them in danger?
One positive use is to include Face and Fingerprint recognition as a 2-Factor Authentication to all KYC processes. No names, no addresses, no ID required. No negative legal implications for those who’s anonymity is absolutely essential to their safety.
Financial inclusion and empowerment begins with the Crypto Currency industry: Within the crypto industry, whenever you want to sign up for a token’s wallet or trade in the system, or indeed purchase any crypto’s you are required to provide a lot of privvy information which, for many, is placing them in danger. Adding the simplicity of face and fingerprint recognition removes all these issues whilst empowering the unbanked to uplift themselves and become an integral part of the new economy.
As technology advances rapidly the ‘unbanked’ are increasingly able to access more modern devices for lower prices. There are now phones and tablets at the bottom of the price range which have fingerprint and facial recognition software, allowing privacy without having to recall a password — a problem in the real world. Passwords are impossible to recall for the financially stable, those in strife, living financially crushing lives don’t have the wherewithal to recall passwords!
The ease of a fingerprint or facial recognition opens up huge opportunities for the unbanked. The problem now, though, is who is keeping the information of their face and fingerprint? Are they ever really going to be safe? Are there any companies out there who are focused on protecting the unbanked from the turmoil and disaster that could occur should the wrong entities capture their information?
How do we, as a society, prioritise protecting the innocent? That is both you and I too, not just those who’s lives depend on anonymity!
Bonnie Crofford — Thought leader in the emerging technology field :: protecting those who don’t realise they need protecting is one of her priority’s.
Prolific engagement across professional media such as Linkedin, where she engages in conversations with leaders situated globally in every industry imaginable, as well as genius minds and founders of tomorrows leading technology, enables her to maintain a fluid influence without being a publicly known figure. Her ‘shadow’ persona for 10 years has enabled her to develop a reputation based purely on knowledge, opinions and the values she puts store in. Designing her career path and destiny by playing with her strengths in wit, wisdom and a whole lotta clever conversations!
