Seamless Customer Onboarding using Digital KYC
- 2. Introduction ● The new amendments in the Money Laundering Act came as a relief for the FinTech industry. ● A cost-effective, scalable and user- friendly alternative, Digital KYC was introduced. ● With the use of E-KYC or Digital KYC, the banking & financial sector experienced a rise in the number of customers being onboarding. ● Also, this technology has made the life of customers easy.
- 3. What is Digital KYC/E-KYC? ● Digital KYC/E-KYC allows the Regulated Entities to undertake the KYC of customer via an authenticated application. ● This was introduced as a part of US Patriot Act with the sole purpose of catching offenders & safeguarding the interests of the citizens. ● It uses two way video applications capturing the details of the customers. ● It is a foolproof and is an end to end encrypted process.
- 4. Digital KYC Solutions & E-KYC banks ● The traditional ways of KYC verification involved physical collection and examination of documents. ● It consumed a lot of time and human resources with higher error rate and misplacement of documents. ● With the development of Digital KYC, the banks & financial institutions are able to eliminate these issues. ● India’s Aadhaar program for digitized ID has been successfully looked upon by the world.
- 5. Impact on Customer Onboarding ● The boost that Electronic KYC has given to the FinTech firms & other financial institutions is beyond dispute. ● The banks have initiated the Digital KYC process and are witnessing huge savings on the cost of customer onboarding. ● Faster completion of the process has helped banks to expand its customer base.
- 6. Conclusion ● The customer onboarding process has made it easier for the financial service providers to onboard new customers. ● Also, the customers have derived benefits from this process as they experience a hassle-free & smooth verification. ● A environment-friendly method with a promising future has encouraged multiple startups to come up with more effective KYC processes.