Category: KYC & KYB

Welcome to our meticulously curated KYC/KYB category, a comprehensive repository dedicated entirely to the multifaceted dimensions of Know Your Customer (KYC) and Know Your Business (KYB). As we stride deeper into the digital era, the procedures around KYC/KYB have emerged as a fundamental pillar, ensuring secure and compliant operations within the financial landscape.

The articles housed in this category plunge into the complexities of KYC/KYB, discussing its inherent challenges, potential solutions, and its indispensable role in the realm of identity verification. Our articles traverse a wide array of topics, ranging from the application of artificial intelligence in customer due diligence processes to the impact of regulatory shifts on KYC methodologies. These writings cover a broad spectrum of subjects, offering relevance to businesses and professionals operating within the financial industry.

As a leading industry player in the domain of digital identity verification, Signzy stands at the helm of innovation in KYC/KYB. Our cutting-edge solutions are engineered to simplify KYC, making these procedures faster, more efficient, and notably secure.

Regardless of whether you’re a compliance officer diligently maintaining regulatory standards, a fintech entrepreneur navigating the challenging waters of the financial industry, or simply an individual interested in gaining a deeper understanding of the evolving world of KYC/KYB, our category offers a treasure trove of information and insights.

We invite you to join us on this journey of exploration as we dive into the future of KYC in the rapidly evolving digital age. Our articles aim to enlighten, inform, and provide a well-rounded perspective on the significant role that KYC processes play in today’s digital financial landscape. Welcome to a world where knowledge becomes power, and compliance becomes simplified.

Future of Video KYC (..and the past)

Posted on | by Signzian

Digitization has transformed the way customer onboarding was done. With online video KYC, banks are now able to reduce customer friction and automate the onboarding process. Let’s dive deeper to understand more about video KYC

You may already know, but ‘KYC’ short for ‘Know Your Customer,’ coming from the conventional investment world, with ‘detailed information from investors and banks about risk appetite, investment expertise and financial position for their clients.’ For the case, Banks complete this KYC strategy at the Time of opening of a bank account. The bank additionally must keep on upgrading the KYC of each client with Time. KYC formally came into existence in India in 2002. RBI also directed the banks to be compliant with the KYC Master circular by Dec 2005.

Though digitization started quickly, we had a long way to go.

What is Video-KYC? And Everything You Should Know About It

Traditionally, either consumer, or the bank has to be present physically in front of each other. With the acceptance of digital methods in practice, IPV still alluded the customers. Other digital methods restricted the per annum transaction to a certain extent. Right before the COVID mayhem, RBI formally introduced online video KYC as a valid method of onboarding the customers.

Through a video call, the client can straightforwardly chat with a Financier, give all the personality records to confirm who they are, and finish the account opening steps in many minutes. The Video KYC helps you remotely link customers without the need for a physical “IPV” test. A bank officer reaches individuals through a live video call, and they ought to submit identity confirmation virtually in the Video KYC process.

It is also referred to as Video KYC, Digital KYC, or Visual Customer Identification (V-CIP). The recently allowed video-KYC guarantees to supplant the out-dated KYC framework totally, with clients now not required to follow it up with physical confirmation of documents. When both identity and record is confirmed, the outcomes are sent to the back-office. Along with it, Video KYC lets you open an account immediately or take out a loan too.

Future of Video KYC (and finance)

Components like reliability and versatility of Video KYC arrangements have been most talked about and talked about. Online video KYC can prove to be a hassle-free norm in the future even after the battle of COVID-19 too. KYC Video could be a significant benefit to investors, pre-paid wallet players, insurance firms, private and public banks, financial securities, and non-banking entities.

It is a safe way of achieving a clean consumer base for the banking industry and particularly Fintech companies. KYC is the first step in this process, and we hope that will bring you to us as your Video KYC solution partner and be a significant move towards the customer.

Who is offering Video-KYC?

1. The banks said in their press releases that RBL bank and IDFCFirst bank launched video KYC for the opening of savings bank accounts and that IndusInd bank has enabled KYC for the opening of savings accounts and has tied up BankBazaar for applicants for credit cards.

2. According to Deepak Sharma, the video feature of KYC will have its learning curve, chief digital officer Kotak Mahindra Bank. “This offers the user the ability to receive a restricted KYC account that can be transformed into a full KYC account due to network problems or records.

3. And many many more have started using it by Sep 2020. In fact, vendors are even getting replaced while I am writing this.

How Can Video-based KYC Be Beneficial For India?

Why is V-KYC such a big deal? The brief reply is that it serves as a reliable software for social distancing. The recent outbreak of social distance may have been alarming, and our daily financial activities could have been limited. There’s some good news here, no worries! To eliminate the conventional paper-based KYC approach for identifying the consumer, the Reserve Bank of India (RBI) has taken an essential step towards digitalizing the KYC mechanism for the ecosystem. Many banks and financial agencies have begun introducing guidelines for an effective online video KYC operation. That is how V-KYC can serve as a critical success factor:

a) Comfort: The video KYC method can be done with home comfort. You only need a laptop, smartphone, or tablet that is linked to the Internet.

b) Less Time Consuming: The Time for the document review is less. It can be accessible to complete the procedure, which took weeks sooner in a matter of days.

c) Safer: Video KYC test eliminates the need for customers to visit a branch or exchange paper copies or wait for days to complete the account opening process. That will improve the conditions for social distancing, the way bank accounts are opened in the future, and significantly reduce the boarding cost.

d) Reliability: In a nutshell, it enables fraud prevention and error checks. It also stops malicious behavior from occurring and corruption practices such as money laundering.

e) Cost-Effective: For both parties, KYC costs between Rs.50 and Rs.500 while V-KYC cuts cost significantly, allowing more consumers, no matter where they are, to be on board quicker. Video KYC gives customers a more convenient choice when raising their costs during onboarding.

f) Efficiency: The face to face KYC is unpredictable and lengthy due to which only 3 KYCs can be performed a day, but Video KYC comes up with more flexibility and only requires 2–10 minutes for the entire sessions reducing turn-around time while not being limited geographically.

Details Required in the Online Video KYC Process:

The following steps are required to proceed:

1. Fill up the necessary details on the online form.

2. The customer’s picture should be live and not a photo-of-a- photo. Banks can use facial recognition technology to validate the client with an image of the documents on camera.

3. Provision of bank consent to fetch Aadhaar details and enter the PAN number or conduct an e-PAN verification.

4. Live customer locations need to be geo-tagged to ensure that they are located in India.

5. The session requires both the user and the staff of the regulated entity to be present simultaneously.

Bottom Line

Online video KYC serves as an utmost foolproof innovation to set a social distancing and has a long way to go. Customers can now update or complete their KYC process and continue to use the loan service. Considering the current digital pandemic scenario, this is the only way of life. So what do you think of Video-KYC?

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Rahul Raj

Sales professional with 12+ years of experience in technology sales, and business consulting.

 

The CKYC: India’s Integrated Identification System, Improved

Posted on | by Signzian

We are living in a world packed full of automated solutions to problems. When you want to go shopping, just visit an online marketplace like Amazon or eBay and you’re good to go. You have chosen something that you wish to purchase but you wondered, “how should I pay for this?” Perhaps, with Indian KYC, it might be something more lenient to investing like buying stocks or shares from a company.

Good thing that online payment solutions exist nowadays. This is the most frequently used and reliable means of settling important or urgent payments to various goods and services in the market. However, there is a catch — companies are implementing stringent regulations with regards to the people who purchase their selling point and the authenticity of their identity.

One of the first solutions to this problem is the KYC (short for Know Your Customer) systems in several companies, stores, investment solutions, and more. This system is dedicated to identifying, accounting, and securing the customer’s information, including but not limited to the name of the customer, gender orientation, date of birth, employment, civil status, place of birth, and many more. The KYC system is implemented in several parts of the world, especially to developing and developed countries such as the United States, Canada, United Kingdom, Spain, and selected countries in Asia.

Particularly, India has taken a lot of crucial considerations in the field of customer and client identification, including their significant efforts in implementing the Indian KYC system nationwide. Because of the reported scams, complaints, and shady transactions and online accounts used in several platforms, they have decided to take the system to the next level. Here, I introduce to you, the Central KYC system in India.

The motivation behind Indian KYC

The main motivation behind the induction of CKYC in India is the non-compliance of the old KYC of banks all over the country. The Reserve Bank of India (RBI) imposed hefty penalties to several banks such as ICICI Bank Limited, Allahabad Bank, Andhra Bank, Indian Overseas Bank, and Bank of Maharashtra ranging from Rs 1 to 58.9 crore (notation for 10 million). In nearly a year, these banks faced what it looks like their worst penalties in the entire course of their operations.

These banks are known for being well-managed in terms of financial and statement compliance to the RBI. Because of these shocking events, the RBI knew that they have to implement a greater, more stringent system to minimize these unforeseen events. They created the Indian KYC or CKYC system, which is short for Central Know Your Customer. This new system is first imposed by the directives of the Ministry of Finance who created the Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI), the performing body of the CKYC Records Registry. This registry is dedicated to receiving, storing, securing, and retrieving KYC records digitally for clients. This is the government initiative to centralize the overall KYC processes and records in the country.

CKYC as an all-in-one customer records’ haven

For starters, the Central Know Your Customer (CKYC) system is the Government of India’s main KYC (Know Your Customer) program. The goal of this program is to integrate a system in place that enables investors to complete their KYC only once before engaging with specific financial sector entities. The system’s goal is to reduce the cost of generating and checking KYC documents once the consumer first communicates with a financial institution.

The Central Registry of Securitization Asset Reconstruction and Security Interest, or CERSAI, is created for the sole purpose of securing the stability of the new CKYC system in the country. It is authorized by the Government of India to act as the all-in-one security interest registry with the compliance to the PLMA (Prevention of Money Laundering Act) of 2005. They shall be responsible for the overall security of KYC records in a digital form for clients. The accessibility of their form for complying CKYC requirements will be available via several websites on the Internet such as in portal.amfilindia.com. CKYCR shall serve as a consolidated repository of KYC records of financial sector investors with consistent KYC specifications and the inter-usability of KYC records across the industry.

Knowing the differences between KYC, eKYC, and CKYC

In terms of functionality, KYC, eKYC, and CKYC are just the same. They just differ in their approach and how they implement security and accessibility of KYC records for the clients. Their main differences are as follows.

The Indian KYC system is the typical and commonly-done procedure in the Mutual Fund industry whereby an investor’s identity is checked based on the written information he or she submits in a form of a document, accompanied by an In-Person Verification or IPV procedure. When the authentication is completed, the appropriate investor data must be encoded into the KRA Registration Agency (KRA) program and then finally added to their database.

The Indian KYC is done with the use of the investor’s Aadhaar number. There are two verification options of the investor’s identity upon the succession of the eKYC application. The first method is via an OTP (One-time Password) which has a limitation of Rs 50,000 per annum of mutual funds and automatically mandates it online. The second method is via biometrics which has no investment cap unless the investor violates the Government of India’s PLMA of 2005. When done, the investor’s details are imported into KRA databases.

The CKYC is the Government of India’s program seeking to create an integrated system that enables investors to do their KYC only once. CKYC enforcement will allow an investor to go through the whole process without having to complete several KYC formalities. CKYC is geared towards the encouragement of investors in engaging more in the market.

Each investor shall receive a 14-digit KYC Identification Number upon compliance with the following requirements:

Completed CKYC application form/KRA application form plus supplementary CKYC form

· A self-attested proof of your identity (one of the following: PAN, passport, voter’s ID, driving license, Aadhar card, etc.)

· A self-attested proof of your residence (applicable to your proof of identity as long as it states your address)

· A photograph of yourself

Successful applicants shall receive an SMS message or e-mail, including their KIN. However, if you already have a KIN before, you are already a CKYC compliant and you don’t have to go through the whole process of completing the requirements.

Wrapping up: Indian KYC is a promising initiative

The CKYC is a promising initiative of the Government of India to lessen the hassle of going through every step of securing an investor’s identity. Also, it improves the overall security, stability, accessibility, and processing of applicants and existing investors alike. Additionally, the system has helped reduce and even eliminate the recurring number of penalties in large-scale financial establishments in the country, testifying the significant efforts of financial and customer care of the Government.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Rahul Raj

Sales professional with 12+ years of experience in technology sales, and business consulting.

 

Automating Online KYC The Intelligent Way Using IPA

Posted on | by Signzian

KYC or Know Your Customer has been a crucial process in the banking sector for onboarding customers. However, traditional KYC involved several manual steps for the unique identification of the client. These steps were time-consuming, tedious and added to the expenses of the institutions. A report by X-Infotech states that banks across the world spend around $500 million yearly on KYC compliance. Financial Institutions (FIs) have also been additionally fined over $12 billion over violations of KYC and AML (Anti-Money Laundering) regulations since 2009. [1]

In a world where entities are ramping up online, digital authentication of one’s identity has become a necessity. With the pandemic taking the contactless process to a different level, institutions started to adapt themselves to a more efficient and cost-effective solution- Online KYC.

Online KYC has helped institutions verify the identities of their customers while at the same time providing them with a simple, secure, and compliant solution. It has provided customers with ease of moving through and completing the long process within minutes. In this blog, we discuss the challenges and benefits of the process.

Scrutinising Initial Challenges Of Digital Onboarding

Traditional onboarding involves several steps for the unique identification of the client. For a long time, in-person verification of the client’s identity was a must to ensure authenticity. Visiting the bank branch, face-to-face meetings and manual verification of documents was time taking. Along with this, it also left room for errors and a higher client dropout rate.

A lengthy onboarding process burdens the financial institutions. Online KYC helped make this process faster, secure and more efficient. However, there were many initial challenges that delayed the shift from offline to online. Some of these challenges included-

Lack of compatibility and compliance-
One of the major challenges of digital onboarding is the fact that users might have various devices with different internet bandwidth. In areas of weaker internet connection, onboarding can prove to be challenging. Different institutions can have their own set of regulations and specifications. This disparity and lack of standardization make the process confusing for customers with many accounts.

Inconsistency in recording data-
Outdated recorded data can prove to be a hurdle in the verification process. Performing accurate, efficient and verifications is central to maintaining a solid customer base and establishing a brand as a trusted service provider.

Privacy risks-
Verifying the information by a single FI and then using the same with others seems an efficient plan. But this also puts the information at higher cyber risk. Both global regulators and stakeholders expect that this will increase customer risk. Basic credentials and personal data on credit history involves many security risks. This might expose personal data to the very real threat of digital hacks.

Fraudulent-
Scamsters posing as officials have duped people of money. They usually do it by gaining remote access to the victim’s mobile phone screens through an app. They hack into the victim’s account by telling that their KYC needs validation.

 

Curbing Hurdles And Adapting To A New Way Of Banking

A report on RPA by Capgemini states that onboarding takes 24–30 days on an average. The same report also states that 9 out of 10 customers were not satisfied with their bank’s KYC processes. [3] As a result of which, they had to switch banks. IPA (Intelligent Process Automation) solutions can help FIs optimize their operations. These will help in reducing the costs and improve the accuracy of data verification. Emphasis on online KYC regulations ensures businesses with an efficient experience.

  • According to a study by CACI, by 2022 customer physical visits to their retail bank branches will drop by 36%. Mobile transactions will also see a rise of 121% in the same period as reported by x-infotech. The same report also estimates that 88% of all interactions will be mobile by 2022. [1]
  • Financial institutions are now moving towards remote and online verification processes.
  • Automated biometric verification and video conferencing tools provide a secure and efficient alternative to the traditional KYC method. A smooth, hassle-free client experience helps institutions grow their revenue.
  • A report by Acuity Market Intelligence estimates that 1.9 billion bank customers will adopt biometrics for financial services by 2020. [1]

Combining AI + RPA to Transform Onboarding using IPA

Financial Institutions have now started to address this anomaly and have started to adapt themselves to the ever-evolving technology. This helps them make the process efficient for both themselves and their clients.

  • IPA blends AI and RPA to create solutions that perform unstructured tasks efficiently. It shouldn’t be viewed as completely different from RPA (Robotic Process Automation) but rather an upgrade to it.
  • IPA is capable of handling complex processes to provide a seamlessly integrated framework. It uses image recognition and Optical Character Recognition (OCR) to understand, recognise and process the data according to the required task.
  • Introducing IPA (Intelligent Process Automation) can help cut down the probability of error and manual efforts of conducting repetitive steps.

Here is a list of benefits of IPA and how it is transforming the KYC process-

A smooth client onboarding solution

The faster process can allow financial institutions (FIs) to add value to their client services. The consistent and smooth customer experience can benefit them to transact or trade. eKYC reduces the manual efforts spent on collecting the client’s documents. Faster client onboarding proves to be an effective way of revenue generation.

Reduction in operational time and cost

An automated and standardised process reduces the inefficient steps in onboarding customers. Institutions can review and store the data. This reduces contact points and client drop-out rates. Capgemini reports that a centralised source could help the financial institutions save crucial back-office hours. It also helps and reduces costs by up to 50%.[3]

Increased operational accuracy

Manual entry of data can often lead to errors. This can amount to application rejection and loss of office hours and resources. eKYC registration online eliminates that risk. Accurate and secure storage of data helps combat the issue.

Better regulatory compliance and a holistic digital transformation

Financial institutions can harness better relationships with their clients. The details are up to date and transparent. This leads to better business partnerships and networks.

Quick ROI And Employee Satisfaction

Capgemini reports that the return on investment (ROI) on RPA implementations is as short as six to nine months [3]. Reduction in the manual processing of data helps in the reassignment of higher value tasks to the back-office staff. Allocation of new and improved objectives improves the work-life balance of employees.

How is Signzy providing a solution to these challenges?

Signzy’s AI-based solutions offer a simple, secure KYC collection process to financial institutions. We provide digital onboarding services to over 70+ financial institutions including 7 major banks in India. After implementing our solution, our clients have seen-

1. 75% reduction in operational costs,
2. 66% reduction in customer dropout
3. 3x increase in sales

Here are the overall benefits of our digital onboarding products-

Better compliance and compatibility-
Our services are compliant with the latest regulations. Through our smart AI-enabled onboarding solutions, we offer our clients to customize their workflow according to their needs. In addition, these solutions are compatible with most user devices. They have proven to be effective over various platforms, browsers and low-internet scenarios. This offers the users a seamless onboarding experience. Customers receive notifications about the required documents for the verification beforehand. Clients can schedule a time for verification through VideoKYC.

Improved BackOps, better efficiency-
Our Patented AI reduces 90% Backops effort. This makes the onboarding of investors effective. The details of the customer are extracted from the identification document uploaded by them using advanced extraction services. These details are then verified against forged data using Signzy’s proprietary technology.

Reduction of TAT-
The traditional method of KYC involves the submission of a lot of documents. Followed by processing and verification by several departments and their officers. This can be a time-consuming process. The automated process of VideoKYC saves a lot of time. Real-time verification of documents reduces the hassle of collecting photocopies.

Better background checks-
A unique set of APIs does comprehensive credit checks against potential frauds. Through advanced AI technology, we have been on the frontline of providing credible background checks. Some of which, for instance, include-

  • Document recognition- Real-time PAN verification extracts the data from the displayed ID proof by the customer. At the same time, it verifies the data against digital forgery, frauds or risks.
  • Video liveliness check- Video forensics detects pre-recorded videos and potential spoofs.
  • Image and video forgery- Face on the ID is matched against the face in the video and a match (or confidence) percentage is shown.

Best-in-class data protection and privacy-

The data shared on our platform is end-to-end encrypted. Our platform prevents leakage of data and malicious activities by any third party. Our video conferencing tool allows recording and the safe storage of calls for call audits. Any breach of privacy can be understood during auditing.

Conclusion

Today, a lot of financial institutions are heading the automation way. Yet, there are still some exploring the scope of it. Ever-changing regulations and policies in the KYC process appear as a hurdle. This creates challenges for both financial institutions and their clients. A standardised process will help FIs with better client onboarding solutions. While such problems may continue in the future, IPA solutions hold the potential to combat such issues. Digital Onboarding is simple and secure and at the same time provides a seamless customer experience.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

 

Video KYC

Video KYC: A game-changer for Non-Banking Sector

Posted on | by Signzian

It isn’t just the finance and banking sector that is going digital. Every aspect of our lives, every industry we can fathom is undergoing a digital transformation. From the comfort of one’s home, a car can be rented, a fiancé found, a house booked, and a loan taken. The common prerequisite for each of these pursuits is verifying that the person is exactly who they say they are. (A little more than) a click of a button can authenticate the user with the help of a remote id verification service. Irrespective of workflow, the Know-Your-Customer (KYC) process is shifting to the digital for each step, end-to-end.

The Need for online ID verification & Video KYC

With the COVID-19 pandemic forcing everyone into their homes, there is a growing need for an efficient, cost-cutting paperless system. A system where the person seeking the service never has to come in contact with the organization providing it.

The problem NBFCs are facing

Due to the privacy judgment by the Supreme Court, Non-Banking Financial Companies (NBFCs) are not mandated to use Aadhaar eKYC as a means to simplify onboarding. This creates a gap for a simple, secure, and compliant solution.

The Precedent: Video KYC in India

On 9 January 2020, the Reserve Bank of India (RBI) approved Aadhaar-based video authentication as an alternative to e-KYC. Now banks and other lending institutions regulated by the RBI can adopt a Video-based Customer Identification Process (V-CIP). It is a consent-based alternative method of id verification for customer onboarding.

The amendment to the KYC norms are a great way to push digital financial inclusion. The benefits of VideoKYC for banks are often discussed. But, what many fail to see is the future VideoKYC holds for non-bank institutions.

Non-banks, whether performing a financial function or not, can adopt VideoKYC as a solution to all their onboarding challenges. This blog will discuss the different industries that can adopt VideoKYC. It will also delve into the regulatory paths that exist, and those that can be potentially created to include NBFCs and non-financial institutions in the VideoKYC revolution.

The Potential Paths of KYC in India

Video KYC can fill in the gap of a simple, secure, and compliant solution for NBFCs. It is also useful to various non-financial institutions. It boils down providing a faster solution for all those sectors that erstwhile used electronic form filling.

RBI is the regulator of banking in India. Currently, different bodies regulate different finance related aspects carried out by non-banks. The future can only hold one of two options:

  1. The potential of non-bank financial institutions regulated by the RBI
  2. The current situation of non-banks not regulated by the RBI but other specific authorities

Either way, VideoKYC can be freely used by the following without any regulatory roadblocks:

Regulated non-bank institutions

The following 4 functions are financial in nature and the non-bank institutions performing them are currently regulated by different authorities.

  1. Asset Management Companies (Regulated by the Securities and Exchange Board of India): The VideoKYC onboarding customer journey allows full KYC, AML/CFT and authentication resulting in significant reduction of costs. Apart from individuals, it can also be beneficial to onboard non-individuals such as SMEs. The solution eliminates back and forth to reduce onboarding time.
  2. Insurance (Regulated by the Insurance Regulatory and Development Authority): Technologies such as a livliness check and digital fraud detection enable an enhanced user experience and reduces digital risk in the insurance arena.
  3. Lending: Using VideoKYC for the SME lending process can result in faster decision making and improved user experience. It can also be used for other forms of lending by NBFCs such as individual retail lending.
  4. Payments: KYC had been a primary barrier for mobile wallet companies who were relying on Aadhaar to onboard customers. They had to resort to cumbersome traditional processes. Video KYC can streamline the clunkiness of this experience.

Non Financial institutions

  1. Telecom industry: Authentication of a user is imperative to be issued a SIM card. Till now a physical visit to the service provider was mandatory to activate the SIM card. With the safe, contactless option of VideoKYC now in existence, the telecom industry should switch to this method of id verification.
  2. Rental/shared vehicle economy: Players like Ola Money which had a firm base of users using their wallet to pay for cab rides, had to perform the full KYC ritual to keep their accounts operational when eKYC was banned. With RBI accepting Video KYC as a potential alternative for digital KYC in 2020, Signzy’s Video KYC technology has the potential to provide the solution.
  3. Co-working spaces: Co-working spaces have been cropping up in the past few years. For the safety of all those working under one roof, KYC is done. Like any other long-drawn out process, VideoKYC can help reduce the time it takes to begin working from one’s new work place.
  4. Co-living and accomodation rentals: Driven mainly by urbanisation, the lack of affordable housing and technological innovation, co-living is gaining popularity. Documents may take time to be verified due to obstacles like blurred images or the possibility of forgery. A trustable solution must be used for the peace of mind of all tenants and VideoKYC is the best solution in the foreseeable future.
  5. Consumer goods rentals: Rental companies also follow the same approach where the owner never meets the buyer. In order to authenticate users, KYC collection and id verification is a must. But traditional forms of KYC collection can be cumbersome and require a lot of manpower, time and infrastructure. Just like every other paragraph in this blog, we cannot stress enough how much easier VideoKYC can make this.
  6. Educational platforms & exams: Although not used as widely as other sectors yet, with homeschooling now a forced practical reality for many students worldwide, VideoKYC can be used to onboard students to a new platform for learning. It can prevent cheating in competitive exams ensuring the person taking the exam isn’t someone else.
  7. Gaming: Cybersecurity and fraud are a huge concern for the gaming world. With money at stake, KYC is important to detect and shut down fake accounts and fraudsters.
  8. Dating and matrimonial sites: Trust is the foundation of any relationship or marriage. To get to that stage the user must trust the platform they are using to find their significant other. VideoKYC can ensure all suitors are exactly who they claim to be online.

But, why exactly are we calling Video KYC the future? You can find out through this blog.

Whether you are a bank or a non-bank, VideoKYC provides id verification solutions for any industry. Signzy’s VideoKYC solution has matured over dialects, browsers and low-internet scenarios. Use our new-age trust protocol to improve customer experience, cut down costs, and simplify onboarding. It will soon become a multi-industry standard. Adopt it to stay ahead of the curve.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

 

Video KYC, How to Choose the Right Video KYC

Posted on | by Signzian

The finance and banking sector is becoming increasingly digitized and globally accessible. Consequently, we are witnessing a sharp surge in the demand for remote identification services. The goal of KYC video identification services is to make life easy for banks and their customers.

The financial institutions of India face a number of issues. KYC and other compliance processes are a couple of them. At present, there are quite a few solutions provided by fintechs for digital transformation in the market. These are stable and secure enough for financial companies to adopt right off the board.

The Need for a Global Digital Trust System

Since the world is getting more and more connected, people today want to access services from the comfort of their homes. When it comes to the identification process, carrying out banking procedures becomes a hassle in these scenarios.

This is where ID Identification comes in. A KYC video identification process allows banks and other financial institutions to verify customers while onboarding them through video over the Internet.

This is an attractive option for financial companies. It eliminates security vulnerabilities and minimizes loopholes. Identity frauds deter our growth as a financial institution and as a nation. This will allow financial companies to build a global network of customers.

Used effectively, KYC video identification can help speed up customer onboarding. And, it helps with KYC/AML compliances. Online video KYC eliminates security gaps by combining human scrutiny with both software and AI and ML-enabled learning.

Use Cases and Applications of Video KYC

Video KYC has started it’s journey across the financial services industry. Institutions like banks, lenders, investor onboarding and ICO’s have shown a great interest in the potential of VideoKYC.

A KYC video identification system can allow all of these organizations to maintain excellent standards of compliance and trust while not compromising on the customer experience.

The Challenges with Legacy KYC Process

Traditionally the KYC process has been tedious and cumbersome in terms of:

  • Maintaining physical documents that occupy space, take time, and utilize manpower.
  • Processing documents offline which brings with it the threat of misuse of documents.
  • Delays in processing the files hamper the customer experience. Usually known as increases in the turnaround time (TAT).
  • In-person verification: Requires the person’s availability and beats the globalization of financial services.

The time and cost involved in the legacy KYC process hamper the efficiency of a banker. You can choose to eliminate this hindrance by using video KYC.

Choosing the right KYC Video solution

There are quite a few solutions available in the market that promise to transform the traditional KYC process and upgrade it. We encourage you to look for these indicators to make sure your investment in a video KYC solution brings maximum ROI.

  • The solution should an offer exceptional face match score. Comparing the following two will help to eliminate the possibility of any fraudulent activity:
    1. Photo identity submitted by the customer, and
    2. The real-time video session.
  • The solution should have AI and ML embedded to detect and eliminate static photographs or pre-recorded videos.
  • The offering should also be able to check the liveliness of the user by carrying out a speech test. This is where the user is prompted to speak a series of numbers or words which is then matched with the audio recorded on the live streaming.
  • The solution should be integrated with video forensics to detect tampering or misuse of any nature.
  • The software should be easy to implement with an API, SDK, and a webcam for video KYC.
  • The proposed offering should have a quick turnaround time and should ideally take only a few minutes to complete the verification process.
  • An added provision of completely automating the video KYC process should also be a part of the solution.
  • The solution is 100% compliant with the local regulations.
  • The proposed solution can reduce overheads and backlogs in operations by upto 70%.
  • Installation and usage is hassle free for most users as the solution is platform agnostic and follows a Plug-n-Play approach.
  • A seamless interface provides a superior customer experience for a competitive advantage in the market.
  • A vibrant, engaging solution reduces customer drop-offs by upto 50%.

Paperless video KYC can empower financial organizations and change the way customers are treated and brought onboard.

How Does Video KYC Work?

  1. The customer fills up a registration form on your website.
  2. The customer provides relevant document identities such as National IDs, driver’s licenses or Passports.
  3. A customer verification specialist connects with the customer on video, or an automated process is triggered for video KYC.
  4. Using their smartphone or a webcam, the customer can be directed through the video KYC process in a seamless manner.
    (To completely eliminate any chances of error, along with AI and ML, facial recognition technology can be leveraged here.)
  5. Once the documents are verified and the user is identified over a live video, they are sent back to the bank’s website. Next, the user can submit the process of onboarding.

Advantages of Video KYC for Financial Companies

Financial institutions stand only to gain from Video KYC solutions.

  • Save time —  Video KYC speeds up the onboarding process significantly. It allows you to process more applications at the same time and increase revenue. Also, you eliminate the need to train your staff on identity verifications because you have an automated system helping you with it.
  • Save money — Identity frauds can cost you money. Video KYC procedures save time and keep fraudulent people at bay.
  • Compliance — Meet the necessary Anti-money laundering and Know Your Customer compliances with a video KYC software that already complies with the Indian regulations.
  • Improve security — Video KYC software solutions are powered by AI, ML, and facial recognition technology. These are far superior and secure alternatives to traditional KYC processes.
  • Gather data — With video KYC, you can record all conversations and keep this data for future reference.

Video KYC Solution from Signzy

With the KYC video solution we offer, you can:

  • Match the provider of documents with their identity on the documents through face match algorithms.
  • Build trust with the customer through a live video feed.
  • Verify the actual documents with forgery detection algorithms.
  • Trust the document provider with algorithmic risk intelligence.

When our first client used our video KYC product for customer onboarding, they achieved jaw-dropping results:

  • Reduced TAT by 55%
  • Slashed rejections from 9% to 2%
  • Increased sales productivity three times.

Signzy is now completely integrated into the core customer onboarding process of over 15 enterprises in the BFSI sector.

Use our new-age trust protocol to improve customer experience, cut down costs, and simplify onboarding.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

 

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