KYC has been a thistle by the side of the financial industry, especially since the Supreme Court’s bar on Aadhaar e-enabled eKYC. The most recent RBI norms gives the industry an earnest need of Digital KYC, which makes the procedure paperless, and video KYC, which furthermore makes it remote.
In this blog, we attempt to list down everything that you should know about Video KYC, the advantages of the new norms, the innovation they enable and, the next steps in this journey.
How does it work?
In the video KYC process, the details are captured using an encrypted audio- visual encounter, which comes from the registered entity’s domain, such as a bank-issued smartphone application.
All through the procedure, equivalent e-documents can be utilized, be it PAN card (which must be given in all cases) and any business/financial reports that are recommended.
Going paperless and remote for customer KYC
One of the immediate benefits of a paperless form of KYC is the decreased cost. Video KYC provides an additional advantage of being totally remote since digital KYC still requires a visit either to the customer’s doorstep or a touch point. Additionally, Video KYC does not require signatures. Video KYC offers a significant benefit for accomplishing scale, which has become a pivotal factor amid the current situation of lockdown, and also for financial inclusion, since it provides a cost-effective and practical method of achieving compliance, even in remote locations.
Bring on the innovation
A few fintech organizations have acquired new-age advanced identity and authentication technologies, which use artificial intelligence, blockchain and cloud-based API innovation, for KYC compliance. As of now, some of these are deployed for use in various sectors and is quite similar to the use of video KYC for opening mutual fund account.
The acquisition of such technology has potential to introduce new use cases in future, s.a. authentication technology for financial transactions, such as at bank branches, for ATM services etc.
Cost effective options
Performing a video-based KYC is cost-effective and saves time for organizations. Your banker can guide you through some steps to perform a video KYC, the verification can be completed immediately, and upon completion, the banker can give a confirmation immediately just to close loop the process.
Worth a mention
For this process, both the client and the organization’s representative need to be present simultaneously. The client need to have provided consent before-hand for commencement of the KYC process. The Aadhar number must be concealed or masked. A clear PAN card image and PAN credentials must be verified from the government database.
That’s it on this topic. Video KYC based 101 account of Fincare Small Finance Bank can be opened via the link : https://101.fincarebank.com/101/
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