The banking sector is evolving day by day and with social distancing in effect, zero contact transactions are in practice. Due to this effect, banks and financial institutions are offering customers with Video-KYC options. The Video-know your customer process is an additional feature as per the current situation for banks for full-fledged hassle free KYC process. The main aim of RBI is to bring customers onboard and reduce the cost of customer acquisition for the banks. This is an overview of the Video KYC process.
Video KYC Explained
Know Your Customer refers to the process of authentication of the customers either before or during the start of the business relationship. Digital KYC was in use earlier but the customers had to submit the documents in physical form. The new Video-KYC has replaced the old system with no more physical verification of the documents.
Steps of Video-KYC
During the Customer on boarding process the Video KYC verification follows the below steps:
- The customer needs an Aadhaar with a mobile number linked to it, a smart phone or a computer with a webcam, a steady internet connection and any other document as per the bank’s KYC policy.
- After verifying his mobile number, the customer enters his basic details.
- The bank can either directly fetch Aadhaar details from UIDAI or ask the customer to upload his offline paperless Aadhaar.
- On validation of the customer’s details with Aadhaar he is directed to the final step; the Video KYC with a bank’s officer.
- The Bank Officer does a liveness check, takes photos of the customer and documents required as per bank’s KYC policy.
- Verification is done for the customer photograph taken using FaceMatch, for the documents using OCR.
- The Video KYC process for the customer ends once the Bank’s officer is satisfied with the results of the data obtained on the call.
- The customer’s details including those captured during the video KYC are sent to an Auditor.
- On the Auditor’s confirmation a Relationship Number is sent to the customer, which is later linked to the Customer’s Savings Account, when it is created.
The Video KYC process will be conducted only by the officials of the bank. Various Video KYC solution providers are working with banks and are enabling seamless Video KYC process. Many known banks are adopting this feature now to maintain zero contact for seamless customers on boarding.
Benefits of Video KYC
- Paperless verification
- Remote access to customer
- Inviting innovations
- Data leveraging
Video KYC also includes futuristic technology like AI and machine learning for providing a seamless and sophisticated process. Banks are supported by Video KYC solutions to bring people onboard without any contact.