Innovation is at an all-time rise, and industries are always adapting processes that will enhance the customer experience and make it a seamless experience for them. In this wave of innovation, the financial institutions and banks are also adapting to the technology of eKYC, a service by UIDAI to verify the credentials of an individual through digital means.
Whenever anyone wishes to open a bank account or partake in other financial services such as mutual funds they are required to provide endless number of documents, with the application form. These documents enable the financial institution to gather the necessary information about the customers, such as identity details, DOB, contact information, residence address etc.
With Fin e-KYC, the solution is already integrated in the core banking system and thus makes it easier to carry out the digital know your customer process with the help of Aadhaar based authentication, which is used as an alternative to the manual process which consists of collecting physical copies of various documents.
The various benefits of adapting to eKYC are as follows:
1. Instantaneous: Gone are the days when you had to way for days at length for the process to move ahead after the documents were verified. With eKYC everything becomes automated, and all the data can be easily transferred without need for any manual process.
2. Compliant to the IT ACT: eKYC accompanied by digital signatures is considered legally equivalent to the physical documents under the IT Act (Information Technology Act) of 2000.
3. Complete Transparency: With eKYC, all the data is stored permanently online, thus making it easier to track any faulty activity which might occur in carrying out transactions or any other services.
4. Paperless System: With eKYC you easily replace the need of having to manage endless physical documents. This not only allows the financial institutions to become eco-friendly by using cloud-based system but also helps to reduce the costs which are associated with regular KYC compliance procedures.