KYC or Know Your Customer is a new user onboarding process. For instance, if you opt for a new mobile network service provider, the first thing you have to do is a thorough KYC form fill-up. As a matter of fact, you must provide your basic details before you go on board with any service. KYC traditionally has been done through paperwork, which you may refer to as the manual mode. However, the advent of digitalization has enabled users to perform video KYC, often termed e-KYC.
Introduction of video KYC in India
Video KYC has been quite popular since the lockdown period. The trying times of the Covid-19 pandemic have seen many restrictions. Social distancing, work from home, and digitalization became the new normal today. During this period, people had to maintain a safe physical distance. Public places such as banks, post offices, and telecom centers adopted the digital mode to keep the business up.
It is during 2019 that the Reserve Bank of India (RBI) came up with a video KYC guideline for banking purposes. Other sectors promptly switched to the video KYC mode as it proved to be simple, straightforward, and real-time. Customers could complete the entire documentation within 5-10 minutes. Therefore, it became an efficient process that was liked by service providers and customers alike.
What is video KYC?
Video KYC is the digital mode of the customer onboarding documentation process. In other words, you can welcome a potential customer with a brief video call session. The customer should identify herself/ himself through the video call.
How does video KYC work?
Video KYC is more like a face-to-face video call. It offers you a high-end video KYC solution that is strengthened further by modern technologies. For instance, face detection, eye detection, eyewear detection, and object detection are some of the key features of a high-end video KYC solution.
Now, what is the exact process of performing a video KYC? Please go through the steps mentioned below.
- The first phase is called the face recognition process. You can consider it as the replacement of attaching a photograph
- The next step is to produce necessary information such as date of Birth, Nationality ID, PAN Number, etc.
- The customer can do this easily by holding necessary documents (such as proof of address) in front of the camera
- Signature verification is the penultimate stage where the prospective customer must furnish a clear original signature for the record
- The last stage is location identification which can easily be done by turning on the device location. This means if the customer is using a mobile phone or a computer to do the video call, the device location will confirm the same
Additionally, you can find various modes of performing the task of video KYC. these modes include:
- Self-Verified: The customer can verify and complete the video KYC by herself/ himself. All the customer needs to do is to log in to a link for the verification process and follow simple instructions. After clearing all the steps successfully, submit that to the designated portal. The video KYC is done!
- Agent-Assisted: It is natural that not every customer will be familiar with electronic gadgets and new technologies. They need assistance from an expert. A thorough video KYC solution has the agent-assisted mode to help customers with e-documentation. An agent will guide the customer, step-by-step until the process is complete and the documents are successfully uploaded to the designated portal.
Points to Remember
Video KYC solution has become the new trend that has effectively replaced conventional KYC documentation. In hindsight, video KYC is an eco-friendly initiative that involves zero paperwork. Play your part in the go-green campaign and save trees with a successful digitalization of the KYC process.