e-KYC services introduced in Malaysia by InstaREM
Residents and expatriates in Malaysia can now make overseas payments safely and regularly through digital Know Your Customer Services launched by Singapore based company InstaReM. This zero-margin remittance service is going to facilitate hassle-free onboarding and provide cost-effective solutions.
An e-KYC framework was established for remittance companies in 2017 by the Bank Negara Malaysia (BNM), Malaysia’s financial regulator. Since then, InstaReM has been a pioneer in digital cross-border remittance FinTech and is now powered by the NIUM payments platform.
Previously, customers faced challenges in complying with KYC norms through traditional methods. Tedious and time-consuming processes have led to high drop-off rates in the past.
With the digitization of identity verification, they can now just log in to their account and upload required documents and photos to make transfers to over 60 destinations. It can be done from the comfort of their homes and offices with a simple smart device. The customer onboarding process is therefore made painless and transparent.
Financial institutions need to implement such solutions at a large scale in order to authenticate and validate customers with swift onboarding solutions. This will improve risk assessment and fulfill legal compliances with KYC and AML regulations. Long term goals also include combating money laundering and terrorist financing.
Having raised $59.5 million in initial rounds of funding, InstaReM claims to be the only company providing low-cost e-KYC services in more than 60 countries and caters to financial institutions, SMEs and individuals. This initiative is part of their effort to improve efficiency in financial service delivery and provide supplemental services to traditional banking.
