Aadhar has become an undeniable source of identification in India. And there couldn’t be better news to make ‘Presence Less and Paperless Banking’ a reality. Yes, RBI now makes it easy for fintech and startups to onboard their customers leveraging the technology for quick authentication. This will help businesses to reach their customers in remote locations while Video Customer Identification Process (VCIP) is simplified. Now the customers won’t have to be physically present in the banks as the video calling progresses across the country.
What is Video KYC?
Video KYC brings in the live video session with a user who has requested for an online identification process to further their purpose. Video KYC confirms the user identity as per the regulations established by the government. It largely prevents the chance of fraudulence during the identification process.
How Video KYC will turn out to be Advantageous for Businesses?
Video KYC simplifies the onboarding process. In a world where customers are seeking quick responses from their vendors, Video KYC adds to the instant identification process, allowing both the businesses and consumers to get going without any hassle.
And, there’s more than that:
Faster Onboarding of Customers
With the ease of video identification, now fintech startups can finally think of scaling as it does not involve the physical presence of the consumers. It has significantly reduced the onboarding time, thus allowing compliance even in remote locations.
Ease of Authentication
Now that Video KYC provides doorstep identification services, it has become the new thing for new-age customers. All you need is a laptop, smartphone or any digital device with a strong internet connection and you can easily verify the customer’s identity. Video KYC does not need wet signatures, and your customer is onboarded within seconds.
Significant Cost Reduction
Cost has been a dominant factor for startups to scale. Now that Video KYC is permitted, businesses, especially startups can leverage this opportunity as it does not require any hardware for biometric identification. Startups will not have to send an official to remote locations to further the identification process. Since it has become a quick process, the attrition rate is decreasing and startups can retain their customers without involving them in the authentication hassle.
Embraced Customer Experience
The world is driven by the customer’s increasing demands. And today’s customer is tech-savvy and prefers digital media over visiting any bank. Now, Video KYC has given them an edge to do away with standing in long queues and wait for their turn, this embraces the customer experience. This is preferred by millennials as they are not willing to fill in multiple forms and have no proper tracking mechanism.
No more Cyber Frauds
Video KYC can prove out to decrease identity theft as the consumers/customers will not have to submit a physical copy of their KYC documents. Forged signatures will not work and it will penetrate ways for startups to tap in urban locations without a cyber theft.
In a Nutshell
Video KYC has become the swift alternative to physical KYC, allowing users to confirm their authentication with ease. Though millennials prefer digital media, there will still be a challenge for businesses to penetrate this scheme in urban areas where people are not always willing to submit their documents online. Businesses will need an understanding of the market before executing Video KYC.