We have developed a basic understanding of Video-KYC through our previous blog. In this one, we will discuss the drivers for V-KYC and some of the advantages. Let’s begin!

Growing need for Video-KYC

1. User and technological trends: Digitisation with mobile and internet penetration has brought about a significant shift in consumer behaviour. Consumers are looking for ease, time & cost-effective solutions. Organizations and industries at large are using digital means to provide the best user experience during the V-KYC process as well.

2. Security concerns: Financial frauds & imposter identity have always been problems for financial institutions and, shifting to digital solutions could raise these even further. Thus, there is a need for a robust and secure verification process that can efficiently combat fraudsters. V-KYC provides a reliable solution for it.

3. Regulatory changes: In correspondence to the above needs, there have been regulatory changes, the major one being in 2020 – RBI issued guidelines on carrying out remote verification of customers through a Video-based Customer Identification Process (VCIP). Soon SEBI, IRDAI, PFRDA followed suit.

4. Covid pandemic: Covid accelerated the trend for contactless services in the banking and financial ecosystem including remote onboarding of customers. This has resulted in building a craze for the Video KYC industry and it is here to stay.

Advantages of Video KYC Verification Process

Remote Customer Onboarding: V-KYC allows customers to carry all the necessary steps without being physically present at the company’s office. From registration to submitting the identity documents and onboarding everything happens remotely.

Faster KYC Completion: Video-KYC verification can reduce TAT from 10 days to within 10 minutes and that too from the comfort of the homes. The processing is quicker.

Completely Paperless & reduced expenses: The entire VKYC is digital and paperless, thus saving a lot of cost and time to process the KYC application. It eliminates paperwork and utilizes automated verification methods, thus streamlining the whole verification process with real-time results.

Increased productivity & fewer documentation errors: V-KYC would boost productivity by removing manual inefficiencies and potential verification errors. 

Seamless onboarding journey with fewer drop-offs: Traditional KYC processes are more fragmented & slow, resulting in customers abandoning the process in between. V-KYC ensures a smooth & seamless onboarding as the entire process is digital & automated.

Superior Customer Experience: V-KYC would provide a seamless end-to-end customer engagement and onboarding experience.

Video identification is the trending phenomenon and it has become the need of the hour for financial institutions. Stay tuned for part 3 in the blog series for more details!