Digital KYC Verification

In our modern human world, with the help of technology, we can ease out complex work into simple ones. Digital KYC cuts down the manual paper use and many days of KYC process into the instant one. Not only that, Digital KYC online is a convenient process and decreases identity theft, fraud, and money laundering.

E-KYC was highlighted as a hero during the COVID-19 lockdown period. Because before that, the KYC process requires the physical presence of the customer. But during the lockdown, it helps people to do their KYC process remotely with no identity theft and fraud.

After that, it is used by businesses for online identification of customers. To know everything about online KYC stay tuned until the end.

What Is Digital KYC?

In an Online KYC process, customers share their valid documents, photos, and videos with a professional company representative. After that, the authenticity of the details gets checked thoroughly. In simple words, e-KYC means electronic Know Your Customer, and it’s a method used to verify the identity of customers through electronic means such as mobile phones or online platforms.”

Types Of Digital KYC Verification

The E-KYC process can be done through various methods to check the authenticity of the legit customer. Some of them are mentioned below

Online KYC Form

In this type of verification process, customers need to fill out the information in the online form and upload the required document. This form includes and asks for details, such as personal information, address, and signature. After filling in all the details, the customer has to submit the form to the respective organization. After submission, the organization will verify the details.

OTP Based KYC

Usually, this kind of verification is used to create digital bank accounts and wallets. In the OTP-based verification process after filling in your Aadhaar number in the E-KYC form. The customer will receive the temporarily generated password on the number linked to the UID card (Aadhaar Card). OTP-based Digital KYC process is considered secure and prevents the case of money laundering and identity theft.

Video-Based KYC Process

It comes under the most secure way of identifying the customer. In this process, the customer will get an appointment for digital verification via video call. In the video call session, the customer needs to answer the question asked by a representative. During the session, they need to show the valid documents. Video-based KYC is the most secure Digital KYC online process that helps to identify the right customer.

Importance Of Digital KYC Verification

Electronic KYC is a revolutionary and paramount part of banking. It is efficient and secure and eases the customer onboarding process. Apart from that it has many advantages like

• Streamlined Process: Reduce manual paperwork and accelerate customer onboarding.
• Increase Efficiency and reduce time consumption: The automated verification method saves time and resources. It is a quick process in which the customer can instantly complete the verification compared to the traditional one which takes many days.

Decreases frauds: The digital KYC process decreases the cases of fraud and identity theft by using the technological identification methods mentioned above. In the traditional KYC process, there is no transparency in work. As many people got involved with command over customer personal details the chances of fraud are more.

Conclusion

Digital KYC Verification is a revolutionary change in business that allows the verification of the customer and client remotely. This process involves technology and electronic mediums that cut down manual paper, and money laundering, identity theft by thorough identification in an authentic way. It is a quick process in which customers need to submit the document instantly online directly to the business. That makes it important for companies to incorporate it into their organization.

FAQs

What Is Digital KYC Verification?

It is an electronic process to verify customer identity that is important for regulatory compliance and security. It includes processes, like OTP-based verification, video-based verification, ETC for better identification.

Can I Use My Bank Account Without KYC?

Yes, customers can use their bank account without completing KYC. But they can’t access digital wallets without it.

What Is The Difference Between Digital KYC And Video KYC?

It is an electronic submission of documents through mobile or electronic devices. On the other hand, Video KYC is taken live between the customer and the representative. It is the most secure way of online verification.

Is KYC A Must For Both Existing Customers And New Customers?

Yes, it is a must for both new and old customers as it identifies and updates the customer details and prevents them from fraud.

What Is The Importance Of E-KYC?

E-KYC increases the efficiency and effectiveness of the customer identification process. It cuts down manual paperwork and reduces the time, which occurs in the traditional KYC process.

What Are The Documents Required For KYC?

Documents required for Digital KYC Online are PAN Card, Aadhaar Card, Driving License, Passport, Voter Identity Card etc.