Do you know – Video KYC will go a long way in ensuring that processes are paperless, remotely activated, and cost-effective? Yes, absolutely! But in a case, if your answer to this question is no, then come dive into this write-up to know answers to all your questions and concerns.
Not so long ago, new updates related to the video-based KYC have come into the notice. There is no doubt that today, video KYC, is considered to be one of the most significant steps taken by the reserve bank of India. Video KYC today can be efficiently and effectively practiced as a means of user verification remotely, especially in the financial and banking sectors. The digital KYC process with the video KYC can now be used remotely and is completely paperless. Video KYC is one new feature added into the KYC process, which can be done online just with access to the Internet, providing one with a lot of ease and comfort from their home only. For the ones who don’t know – this process is pretty simple, requiring combining a live photo of the user and his location at the same time.
Soon after the announcement of e-KYC as a purpose of identity, small fin-tech businesses, PPIs, and NBFCs started running on tight budgets and finding it really hard to expand it. On the other hand, many non-banking organizations aiming to reach unbanked people are too in flux, with KYC as the only way out for identification purposes.
Well, the most prominent and well-appreciated feature of video KYC is to go paperless. This saves a lot of costs, indeed. Lately, a report published by The Economic Times highlighted and talked about how this Aadhaar based video KYC has cut the costs and made a big difference in pricing things. This has been a major and game-changing factor for so many financial businesses and changing the whole way of doing business.
Other than this, another great benefit of video-based KYC is that it is accessible to anyone remotely. Yes, video KYC can be used remotely, and it is not a case anymore to go and visit your nearest access point. For many people and financial institutions, video KYC has emerged as a cost-effective approach being practiced to acquire compliance. Therefore, following up with the RBI bank’s norms is one further step for ensuring a safe and reliable process ahead.
Yes, it is absolutely true since the Supreme Court’s order on Aadhaar based Video Id KYC. This enables the voluntary use of the identity proof allowing least KYC m-wallets. The administration has made a video-based KYC an urgent to-follow thing – coming up with a paperless and remote option. Despite these perks for a user, financial institutions are too on the good side.
There are a number of means in which video-based KYC is helping investors in providing a paperless and remote onboarding process. It leads to the elimination of the standard bureaucracy and cutting the costs, which would otherwise be required.
Many times, it really gets hard to complete the KYC formalities in India. In order to fulfill the KYC process, financial institutions earlier needed to fill all the important forms and do all the formalities required for the KYC registration process.
With digital KYC at its place, numerous investors tried hard to make this digital KYC process more accessible and convenient for its users. However, still, it required a customer to go and visit a government building and standing in long queues in order to register oneself and get the process completed. Nevertheless, the need for going physically and standing in long queues has now just become something that is only needed in the earlier days.
With the RBI announcing its latest and updated norms on video-based KYC, enabling financial companies to make KYC verified online over the video. Presently, it’s been deemed to be a huge step having a big role in revolutionizing the financial service sector to a great extent.
Financial institutions like banks can simply and effectively enjoy video-based KYC without the need to reinvent the wheels of your cars. In the case of banks, where security is considered to be the topmost priority and everything else too, many are making their way towards the cPaaS players, too, having different cloud-based deployment systems integrated into it. In addition, the data generated through this means will undoubtedly go a long way in making certain that all the major initiatives are carried out with more effectiveness and considerations.
All of such benefits can be availed without any other efforts put in this process; in a case, if there is anything, the video-based KYC process has lessened the hard work financial institutions earlier required to put into such processes. Remember – this video-based KYC is a win-win type of situation for all users and businesses, too, making it an easier and important thing for smooth working processes.
Video KYC process collects sensitive data from a user’s end, just like in the case of digital KYC, too, as a means to identification (ID) proof. What’s more, the addition of facial information for biometric authentication leads to the list of sensitive information of a user. All of us are quite familiar with the data hacks and data misuse cases spiking today. Hence, the concern for data security arises for each one of us as no one wants his or her personal data to be used wrongly.
For a person, a way named up age risk mapping can be considered using to limit such mishaps. In addition to it, a business may incorporate a false-positive screening test with machine learning technology into it. Robotics can also be a great option that can be utilized in video KYC means to process the personal information of many users. Consider employing data protection norms to ensure security does not get compromised at any point.
Since we all know, video KYC is just an alternative to the manual KYC process that can only be done with the user’s consent. So, all the liabilities are on the users and onto the ones who are carrying out this video-based KYC process. It is going to be a challenge at first to conduct such processes. However, following up with norms is important and must & of course, in accordance with the rules highlighted by the Reserve bank of India. The KYC will only be approved by the government once they are done with a concurrent audit of the account thoroughly.
Effective video KYC capabilities are going to empower all your clients and have a seamless onboarding experience in the future, making certain that one’s able to reap maximum advantages from it. Hence, the usage of such a vast technology is presenting innovative use cases for banks, numerous financial institutions, and bank branches too. As a result, this whole thing is presenting scope for different and inventive ways through which data can be leveraged effectively, using different technologies. Note that the data protection law must be considered to ensure all privacy concerns are at a safe place.
In today’s cutthroat era of competition, the scope of innovation is immense, and this is the reason why the Reserve Bank of India (RBI) has put a major focus on the use of video-based KYC processes. Integrating and enabling such a vast technology in different entities is indeed a very big boost in the banking services ahead.
There is very much more to come ahead from the higher authorities, which will be appreciated by all – benefitting and ensuring different areas of today’s industry!
If you have any questions and want to get some certain point added into it, comment and let us know your concerns! We will be more than happy to address them.
Author Bio:
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.
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