Many banks and financial institutions have recently announced the release of the Video KYC solution, which allows a customer to authenticate KYC verification remotely from the comfort of their home. Video KYC is the new formula that helps many businesses redefine their operations model. It also obeys the social distancing norms, which are in great demand as per the present scenarios of Covid-19.
The pandemic has undoubtedly forced many financial companies and businesses to think out of the box & look for unique applicable processes in order to expand their businesses. Social distancing norms have affected banks significantly. So, adopting the video KYC Verification solutions gives new wings to manage the banking processes with ease.
Many companies are providing innovative software so that the entire banking onboarding process takes place in the minimum possible time and is handled remotely. It not only provides convenience to the banks but also offers an enhanced experience for the customers as compared to the tedious conventional verification processes. In addition, Video KYC is safe and adheres to Covid-19 norms.
Wondering- How is Video KYC Safe?
As mentioned above that, Video ID KYC is a win-win game for both the customers & lenders. It is the new normal for KYC processes. Due to the pandemic, many things got changed, in fact, it has become a critical moment for the government as they are imposing new lockdown rules & alongside stimulating the economy to restart. All new solutions like video-KYC can play a great role in allowing businesses to open up safely. The Video KYC solutions are expected to reduce the onboarding time drastically, and it will shorten the wait times for the borrower. Though the COVID-19 crisis is putting pressure on most businesses to innovate. Together with Video KYC Solution, the financial institutions can create a 100% safe & contact-less process that will be used by many people who can even get a loan without having to leave their house.
Let us Deeply Understand the KYC
Understanding the KYC types and their accessibility to financial institutions is also essential. KYC or Know Your Customer is an immensely used process in most of the financial services sectors. From account opening, lending, collections, insurance issuance, KYC is at the heart core of customer identification & onboarding. In a highly populated country like India — there is a great need for scalable KYC as it helps to reduce fraud & increase profitability.
By considering the demand for simple, efficient, time & cost-effective solutions- Video KYC have become necessary to adopt smart solutions to make things convenient. Regulatory bodies like the Reserve Bank of India (RBI), SEBI, & IRDAI have already stepped up to streamline KYC processes. Allowing the adoption of digital modes has enabled a better onboarding process.
Difference between the KYC & Video KYC
Understanding the KYC
KYC (Know Your Customer) is the foremost step in a customer relationship with a company. It is necessary to preserve a good relationship with the company- as customer onboarding norms help identify the true identity of the person. Most of the banks are facing challenges while performing the KYC. With the introduction of new technologies, it becomes easier to fight against online fraud. That is why the KYC procedure is essential for all the FIs and banks.
Many companies have been forced to establish Know Your Customer processes digitally & remotely to be able to continue operating despite the difficulties involved due to the pandemic. In this modern era, everything revolves around technology. Thus, digitalization has greatly impacted the banking process to a great extent. The digital KYC process involves capturing a live photo of the customer & Officially Valid Documents to be geo-tagged by an authorized officer. A customer can share digital copies like PAN, Aadhaar, or Driving License for the KYC process directly on the institution’s portal. The Digital KYC process will verify the submitted details and not the document’s authenticity.
Note: Digital KYC is a paperless way of onboarding customers. This method cuts down costs involved in the onboarding process drastically through an automated process. Thus, it creates a seamless onboarding journey for customers.
Know More About Video KYC in Depth
Video KYC solution is a combination of human & artificial intelligence (AI). This clearly means that only a trained Bank Official can conduct the vKYC with customer consent. In addition, the RBI guidelines have taken all the necessary precautionary measures from security & governance standpoint.
The Video KYC involves capturing the live photo of the client with official & valid KYC documents like the Aadhaar card or any other valid government KYC document. It allows businesses to utilize document image capture, digital ID validation & face-to-face interaction with the high-end official to digitize & expedite the KYC process. A digital signature, as well as equivalent e-documents, has also been allowed by the government as a way to do the Video KYC process. The shift to video-based KYC methods is trending nowadays. The increased demand for digitized methods in response to the conditions of the COVID-19 pandemic resulted in massive benefits for the banking sector and customers by reducing operational costs & allowing contact-less customer onboarding.
Some Advantages of Video KYC
Video KYC allows customer verification through facial matching, automated data extraction, & Machine Learning techniques. It is done all in real-time.
It can be done from your home. All you need is a laptop, smartphone, or tablet with a good internet connection.
The whole interaction with the customers is recorded & stored for security purposes. It is also a fast process that makes things easy.
This highly advanced KYC process slashes onboarding costs up to a great level and drastically reduces turnaround time.
Many companies are introducing Video KYC products which help make the onboarding process smooth. Customer experience is enhanced through digital video. It helps users to submit KYC information & get themselves verified through the video. Video ID KYC replaces the outdated authentication mechanism with high-end video-based KYC solution. The process onboard customers securely. Moreover, it involves automated document verification.
Are you curious to know how to automate the onboarding process? Reach the https://signzy.com/video-kyc/ website.
Mark David is a young, energetic and quality oriented editor, blogger at Signzy. Signzy is continually working on building global digital trust system for banks. With the amalgamation of Artificial Intelligence in Banking Sector and Machine Learning, they are continually working on the betterment of digital video verification in the KYC processes.