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 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
OCR
Facematch,
Liveliness detection
Geo-tagging
are of great use to fintech companies, especially start-ups who want to minimize cost.
Key Factor
Seamless and flexible CX
Fraud prevention (AI base check)
Maintain consumers’ privacy (encrypted solutions)
Cost-effective
Considering above mentioned factors V-KYC has the potential to become the format of choice for India’s next billion internet users.
Source: -
https://hyperverge.co/blog/how-video-kyc-can-play-a-crucial-role-in-maintaining-business-continuity/
https://hyperverge.co/blog/video-kyc-for-financial-inclusion-and-growth/
https://shuftipro.com/blog/video-kyc-understanding-the-what-and-how-a-short-guide
https://yourstory.com/2020/09/video-kyc-adoption-industry-trends/amp
https://getkwikid.com/blog/2020/09/07/financial-inclusion-and-the-potential-of-video-kyc/
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