Video KYC: A Bank-grade Remote Customer Onboarding Process

The Know Your Customer (KYC) procedure has presented a number of difficulties for banks, NBFCs, and other financial businesses.

The inconvenience and expense have increased due to the demand for in-person verification at the branch office.

With RBI's approval of Video KYC as a fully compliant procedure, Banks and NBFCs now have a better option to handle the issues associated with manual and time-bound KYC verification.

What is Video KYC?

Video KYC is also referred to as video-based customer identification.

It is a procedure used by banks and NBFCs to verify customers through a video conversation with the help of a KYC agent.

During the video conversation, they require you to provide identification documents for verification of your identity.

Video KYC is a key component of Customer Due Diligence (CDD) to prevent money laundering, fraud, and the use of funds to fuel criminal activities.

Steps Involved in Video KYC Process:

The video KYC platform streamlines customer onboarding and provides rapid access to financial services & products. The procedure entails:

1. Customer Registration: The customer registers for the service on the bank's official website or mobile app to schedule the video account opening process.

2. eKYC Verification: To complete the eKYC process, the customer must enter their Aadhaar, PAN, or other OVD data during the online registration process.

3. Video Call Initiation: After completing eKYC, the customer is given a secure link that will allow them to join the video call on the scheduled date.

4. ID Verification: The customer must present an Official Valid Document (OVD), such as a PAN, Aadhaar, driving license, or passport, to the KYC agent to have their identity and address verified. The agent snaps the OVDs to undertake background checks.

5. Face Verification: During the call, the KYC representative will take a picture of the customer and compare it to the submitted OVDs.

6. E-Signature Verification: The customer should sign the white document and present it to the KYC representative for signature verification.

7. Liveness Detection: The KYC agent employs facial recognition technology and a few random questions to determine the liveliness of?the customer.

8. Video KYC Completion: KYC agents perform several screenings, including face and identity checks and AML checks. Depending on the verification points, the agent approves or rejects the KYC.

Note:?The KYC agent records the whole Video KYC procedure with the customer's permission. For future reference, the agent will submit the recording of the successful KYC data to the Auditor team.

Basic requirements for Video KYC

• A smartphone, a laptop or computer with a camera.
• A stable internet connection.
• A well-lit and quiet place for video calls.
• Original OVDs such as Aadhaar, PAN, Passport, etc. for ID verification.

Additionally, the customer must be present in India during the Video KYC verification procedure.

Using a VPN, proxy, or static IP may cause the KYC application to be rejected.

Guidelines for Video KYC

• Do not share the Video KYC link received with others.
• Log in for Video KYC only using the URL supplied by the bank.
• Do not share Aadhaar information during the video call. (as they provided it during the first registration)

Benefits of Video KYC Platform

1. Remote and faster customer onboarding:

Video KYC enables an easy verification process and quicker customer onboarding, lowering the rate of customer attrition.

2. Effective Customer Verification:

Video KYC uses AI-based verification methods to increase effectiveness and minimize potential errors in customer verification.

3. Safe and Secure Banking:

To stop fraud and money laundering, video KYC integrates strong security standards, AI/ML-powered filters, and data security measures.

4. Faster Turn-Around-Time (TAT):

Video KYC digitizes documents and automates the validation process to instantaneously check KYC information. This ensures a faster TAT.

?Video KYC: A Boon for Financial Services

In the competitive world of financial services, video KYC verification can keep you one step ahead of the race.

iStart Video KYC is a technology-driven automated verification process that eliminates human error that occurs with manual KYC.?

Online execution of the video KYC process lowers operational costs and boosts productivity.

It enables financial institutions to connect with a larger spectrum of customers, regardless of their geographical location or proximity to physical banks.