The Indian banking ecosystem is a highly touch-intensive industry with banks preferring to reach out to customers directly and face-to-face interactions being the preferred mode of authentication. While Video-enabled KYC services have been around for some time, with AI-enabled technologies becoming more mature and the Covid situation making physical outreach untenable, both RBI and SEBI have now recommended using Video based KYC to mitigate identity based frauds, as an alternative to physical based verification processes like Aadhaar Biometric.

As per RBI, Video KYC can be used by a regulated entity (RE) to open an account-based relationship with a customer without having a the customer face to face meeting. The customer can, through a video call directly with an Entity (Bank/ other than banks) representative, provide all the identity documents (Pan card) to verify who they are and complete the account opening steps in a few minutes.

This process is complimented with AI technology which can help to detect the live location of the customer, perform face match and Name match in order to ensure the person is physically present in India and there is no identity theft by matching the live image captured during the video Call with Pan/ Aadhaar photo

Now SEBI has also mentioned that the In-Person Verification (IPV) can be replaced by VCIP (Video Customer Identification Process) to enable an enhanced customer experience to facilitate real time account opening.

Impact

Encouraging usage of state-of-the-art technology and AI based features completely revolutionizes the way financial sector onboards its customers. The new processes are not only real-time, thereby providing superior customer experience but also drastically cutting down the operational costs in terms of effort and resources to serve their customers, by removing last mile verification hassles.

Setting up the meeting, physically collecting the documents and verifying those documents is now done in merely a few clicks. Customers can have the VCIP interaction completed as per their convenience as the whole process is done online, documents are captured during the interaction and are also digitally verified which reduces the TAT, increasing the efficiency of the REs to serve more customers and also process the applications in real time.

Road Ahead

Solutions like VCIP will play a crucial role not only in the current situation of the pandemic but also in the future. These are the times when consumers will re-strategize the way they manage their finances and completely digital seamless onboarding journeys will be of utmost importance in order to acquire more customers.

Thus, it is very important to have enhanced automated solutions in place which not only provide a smooth onboarding experience but are also regulatory compliant, mitigate various risks and finally enable the relationship officers to serve and onboard customers even in lock down situation.

Video KYC can be incorporated with both Self-Assisted and Agent Assisted solutions and can be used for various banking products like CASA, Deposits , Lending and Investor and Corporate Salary Account Onboarding solutions. At Decimal, we understand how these solutions will rapidly transform the way onboardings are done and foresee more and more financial institutions adopting this approach and launching completely digital onboarding solutions. Our significant experience in implementing onboarding solutions for banks and FI partners with complete VCIP process integration helps us in understanding the journey every bank and FI must take in order to achieve seamless onboarding of it’s prospect customers. Get in touch to know more.

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