KYC is a key part of the customer onboarding process.
With time the process has evolved. With COVID-19 it became necessity for banks and financial institutions to take a leap in their customer onboarding process. More important was to keep balance between security and customer experience.
One such manifestation, emerging from RBI intervention was a notification that allowed Video KYC to be used as a valid KYC option.
Video KYC or video identification is an online method of face-to-face identity verification in which organisations carry out their customer verification process through a video call assisted by a KYC agent. During the video call, the customer is required to digitally submit the identity documents for proof.
Video KYC Process
The customer starts the KYC process by entering their name, address, PAN and Aadhaar data
Customer get recorded on video call for minimum 10sec
While the RE (Regulated Entities) official has final authority to accept/reject a KYC application, AI assistance helps RE official be more accurate and efficient.
A compressed version of the video call is store for audit processes
How Video KYC can play a crucial role in Financial inclusion
Video KYC can play a major role in onboarding customers in remote areas as well as making the onboarding process easier and quicker for a fast-paced, younger urban demographic.
It paved the way for underbanked and unbanked areas in an attempt to provide equal financial access to all.
Makes it easy for SMEs, millennials, professionals, entrepreneurs and others to apply for and receive loans, credit cards, and buy insurance policies.
Being entirely online, features like
are of great use to fintech companies, especially start-ups who want to minimize cost.
Seamless and flexible CX
Fraud prevention (AI base check)
Maintain consumers’ privacy (encrypted solutions)
Considering above mentioned factors V-KYC has the potential to become the format of choice for India’s next billion internet users.