Know Your Customer or KYC is the term used for the process in which the identity of various customers and clients is verified and authenticated before the commencement of any financial, economic, or business relationship. As per the notification and rules by the country’s central bank, the Reserve Bank of India, it has been compulsory for all banks to go through this process since 2004. However, the implementation of KYC is not limited to banks. It is also used in many other fields, such as e-commerce portals, NBFCs, e-wallets, and mutual funds.
KYC automated solutions verify customers’ identities by leveraging advanced artificial intelligence and machine learning technology. This ensures the meeting of all regulatory standards and does not require dependency on other enterprise resources. So, let us understand how it has transformed and helped in customer verification and onboarding on a single platform.
Table of Contents
What is the Video KYC?
In a rapidly stringent and ever-evolving scenario, the process of ensuring systematic fulfillment of regulatory compliances in customer onboarding is a complicated task for all financial institutions. However, it is a must to meet all the compliances of all local and national governments. This is essential as it provides a smooth onboarding process to all customers. Now, with a video-based KYC, users can complete the whole process remotely through a video call. The verifier in such a system checks the necessary documents and conducts a thorough liveliness check to identify the customer’s location. This is a quick and efficient manner that financial institutions now use.
What are the Steps Involved in the KYC Process?
The KYC verification process can be completed online or offline, depending on the customer’s suitability. Below listed are the steps that must be followed for the same.
Steps for Online Verification
- First, the customer needs to visit the official KYC Registration Agency (KRA) website.
- There will be various details that need to be filled in as per the Aadhaar card of the customer.
- On entering the necessary details, an OTP will be sent to the contact number linked to the Aadhaar.
- Then, you must submit the application. After the UIDAI verifies the application, KRA approves it, completes the process.
Steps for Offline Verification
- In the first step, the customer needs to download the form and fill it with the necessary details.
- Then, similar to the offline step, the customers need to enter the Aadhaar and PAN details.
- After this, the customer must visit the KRA office to submit the application. This application must be attached with the address and identity proof of the customer.
- In the last step, the customer can track the status with the help of the application number and check when the process is completed.
What are the Advantages of KYC Automation?
There are many challenges in the manual KYC process, and these include manual data entry, increased costs, wastage of human resources, time-consuming, inconsistency, and security. However, these challenges can be overcome with the advantages of automated KYC, as listed below.
- Increase in Efficiency
A complete automated process enables customers which you can authenticate instantaneously. Moreover, since it does not involve human resources, there’s an added benefit of 24/7 functionality. This results in significantly decreasing onboarding time, and the total number of onboarded customers per annum can be increased.
- Reduction of Risks
Manual data entry increases the chances of mistakes and oversights. With a fully automated end-to-end process, the chances of error are minimized. With digitalization, one of the primary concerns of every enterprise is privacy. The reduction in the dependence on manual intervention helps protect consumers’ privacy by significantly decreasing data breaches.
- Enhancing Customer Experience
The higher the level of customer satisfaction, the higher the chances of achieving the objectives and success of the organization. Automation of KYC provides customers with a frictionless experience as several visits to the bank decrease, and tracking status can be checked anytime.
- Freed-Up Capacity
With the elimination of the need for performance of repetitive tasks by the employees, key areas which have high-risk cases can be focused on. Thus, you can utilize the freed-up capacity by empowering the employees to use their skills and abilities for customer-centric engagement and retention.
- Scalability
Manual intervention makes it impossible to scale large expenditures and revenue. Moreover, frequent changes in compliances and regulations for KYC cannot be updated smoothly. AI-powered bots are used for such requirements, quickly adapting to financial institutions’ needs.
Conclusion
With AuthBridge, you can transform your entire KYC process, reduce operational costs, and maintain all regulatory compliances simultaneously. Identity checks, utility checks, India credit history checks, vehicle registration verification, bank statement verification, and professional verification are also supported by video KYC. Contact us to get customized KYC automated solutions to know how this technology can help you
