The Concept Of Digital KYC :
KYC or Know Your Customer is that process that can easily help any person or business owner in identifying the customer that knocks on his or her front door. Out of this concept was born the concept of digital KYC.
Digital KYC is how any person can easily get his KYC done without much hassle. Hence, it becomes way too easy for any customer to get his or her KYC done in various steps.
We, at Surepass.io, specialize in such services. We have been known for providing great services and will ease the pressure on your shoulders built by decreasing fraud cases.
Snigzy.com
Customers are a necessity for every enterprise but, it is a fact that fake identification holders and identity thefts are quite prevalent.
In such cases, our reliable and efficient digital KYC services are very efficient. We trust the technology we use and hence, can ensure you the safety you need.
The Problems In The Absence Of Digital KYC :
RBI, under the government of India, gave the guidelines in the KYC forms about the whole procedure. It is meant for each citizen to follow.
- Back when KYC was new, it was a tedious process. People had to undergo various kinds of physical processes in order to get it. But, now it’s way easier.
- Earlier, KYC was quite costly. The cost of having a KYC done was around INR 220 to INR 270. If the general public is encountered, it is quite expensive.
- The KYC centers were not available everywhere. Also, it was quite difficult to get the KYC done.
- Such processes were not effective. There were many individuals present who would take someone’s Adhaar and get the KYC done.
- Due to the increase in the number of fraud cases and other forms of identification thefts, the concept of digital KYC was born.
Reliance KYC
It is clear from the above examples that having a KYC done was not easy. It wasn’t effective too.
Cases of clear identity thefts have increased. People have been buying fake sim cards to do notorious activities. In fact, many people have had bank accounts based on Adhaar numbers that weren’t there.
The New eKYC RBI Processes :
eKYC RBI was a very bold step from the government’s side. This is revolutionary and offered security to financial institutions.
In general, financial institutions have lost countless amounts owing to individual frauds. According to research :
“In India, identity theft accounts for 77% of the fraud cases in Q1 2015. Overall, identity theft and fictitious identity cases continue to contribute around three-fourths of all detected fraud cases. Identity theft has observed a rise from 76% in the first quarter of 2014 to 77% in the first quarter of 2015.”
It can be seen that the presence of digital KYC was a necessity and therefore, it is a necessity to abide by the guidelines of the RBI.
KYCweb.com
Using the new form of eKYC RBI, on entering a bank one is able to open an account and walk out, all within 30 minutes. Today, almost everyone can buy an activated SIM card without waiting for physical ID proof verification or any kind of interference.
Automate your KYC Process & reduce Frauds!
We have helped 200+ companies in reducing their user onboarding TAT by 95%
This is because of all the verification with the help of an online build system. There is no need for any kind of waiting or physical presence anymore. This is how the modern eKYC RBI system looks like.
1. Video-Based Digital KYC Systems :
In digital KYC, the next step is video-based KYC or V-CIP (Video Customer Identification). This eliminates the need for physical contact by making a video call feasible for the KYC procedure.
All the essentials listed by the RBI for RBI VCIP are already integrated into the Video KYC software available on the market.
They capture time-stamped images, take the individual’s still shots, and check them against existing databases and ultimately scan documents seen during the video call by the person.
2. No Duplication Of eKYC RBI Processes Can Be Done :
The benefit of Digital KYC is that it is in the databases of organizations where the checked results of a KYC process reside. If another KYC process is being carried out for the same person, the trick here is to program the software to raise a flag in such a situation.
Such a form of KYC can be easily seen when a person opens a mutual fund account or buys an insurance policy from a bank account that complies with the KYC.
3. Digitally Approved KYC Via API :
The API or Application Programming Interface enables organizational networking of accounts and data. Consumers, financial institutions, and third-party service providers may use the resulting networked data.
In other words, APIs allow the databases of related companies to interact easily, securely, and efficiently with each other, thereby facilitating transactions for bank customers.
KYC, built on the API, can securely communicate with multiple databases at the same time, such as national identity, utilities, other banks, and financial institutions, providing simpler and context-rich performance.
For example, API based KYC may produce a creditworthiness report of a borrower based not only on submitted documentation but also from other information gathered from the available financial landscape when providing a loan or any similar debt instrument.
Hexaware
In this case, as the KYC data would already exist from her previous relationship, a new KYC method would be inefficient.
In another example by making intelligent product recommendations based on knowledge obtained from other financial partnerships, banks would be able to provide customers with a richer experience.
Probably the biggest benefit of API-based KYC can be encountered when a customer needs to move banks or other organizations and we can provide great help in such situations.
In any such process, Surepass.io can help any financial institution get the upper hand. Therefore, with such digital services, it is impossible for any fraud to touch your institution.
So, It Can Be Said :
KYC has become important for a long time. While KYC saves many financial institutions from fraud, we are there to save you from the heavy physical KYC process.
The normal KYC process is not meant for customer’s ease. Now, it is very much possible to get the whole process over in a matter of minutes.
With our API and digital KYC process, it will be easier to a greater extent. Our software is efficient, reliable, and accurate all the time. Digital KYC is indeed a reforming technology.
Identity theft that creates a mess of out such processes has cut down by great values. Efficient and fast work processes are a consequence of this mechanism. Reliability and storage capacity are just additions to an already great way for managing KYC steps in India.
Abhishek Kumar
Helping Enterprises with Digital User OnBoarding Journeys & Preventing Fraud
More posts by Abhishek Kumar