Amid the COVID-19 crisis, the majority of businesses are working remotely, demanding the refined process to continue customer onboarding effortlessly. RBI’s recent decision to allow Video KYC for Banks, Financial Institutions, and NBFCs is a major relief. With Video KYC, banks and FIs can onboard customers in 3 minutes while eliminating the need for a field verification agent and thus reducing the cost by up to 90%.
It not only cut costs by huge margins, but it also enabled remote onboarding, thus making it easy for banks and FIs to penetrate their ways into rural areas.
While Video KYC processes are in high demand, there are certain challenges that BFSIs, NBFCs, and E-Wallets face when adopting this customer onboarding process. As much as it is a much-needed relief during this lockdown phase, it has the following challenges:
Data Security: Banks and FIs, as they adopt video conferencing for customer onboarding, have to keep a check on the security measures like a secure video conferencing platform, data & video storage, and adherence to regulatory requirements.
With the rise in fraudulence like video manipulation, the entire responsibility of customer identification lies with the banks to ensure that there’s no data leakage and data tampering.
Fraud Detection: Now, customers can provide a pre-recorded video if the liveness check is not done properly. There has to be a sequence and type of questions that eliminate the chances of spoofing and fraudulence or fake identification. The RE officials have to ask various questions to establish that the process is seamless and end-to-end encrypted.
High Drop-offs Rates: Though the process does not take more than 3 minutes, the video call can be disconnected because of the various reasons like system error, internet fluctuation, manual hung up, and more. Once the call is dropped off, it becomes difficult to reach out to the customers for re-enrollment and KYC completion. This can lead to bad customer experience and the it might take longer for KYC completion
Adherence to RBI Video KYC Norms: As per the Video KYC RBI guidelines, Video KYCs are to be driven by an RE official and an auditor who would need training for video-based KYC. The Video KYC process will be handled by the officials that are trained for this and their activity record is required to be preserved for future records.
Monitoring KYC Accuracy: Now banks and FIs cannot complete the verification process without monitoring and managing the productivity of RE officials and Auditors. There is a constant need for monitoring key metrics like KYC completion rate, dropoff rate, and accuracy rate to make a data-driven decision.
How to choose the right Video KYC vendor and overcome these challenges?
Banks and FIs were looking for a seamless, presence-less, and paperless customer identification process for a long time and the video-customer identification process (V-CIP) has provided the hassle-free model to the money lenders.
Now, a customer can request to open their savings account online and it will only take a few minutes to complete the customer onboarding verification.
For this hassle-free process, you need a system that has the following features:
Secure & Compliant
Ameyo’s video-based KYC is 100% Video KYC RBI compliant, ensuring end-to-end encryption and reducing the chances of fraudulence. It is also ISO 27001 certified with enterprise-grade security like AES 256 Encryption, ensuring that the banks, FIs, and money lenders get maximum security. Along with that, video-based KYC allows the businesses to establish rules for identity check like:
- There’s a liveness check to discard the possibilities of using pre-recorded video and the customer’s location is checked using geo-tagging to maximize the accuracy of the customer authentication.
- The RE official may ask a set of questions like hand movements, pet’s name, schooling year, etc., to eliminate the human error.
- Store customer’s data on the cloud server, therefore, there’s no data tampering by any internal agent or official.
Reduce Drop-offs by 20%
Now, you do not want your customers to switch to your competitors because of bad customer experience. If the video call gets disconnected due to poor internet connectivity, the call gets abandoned on ACD, or there’s a system error, you can always reschedule the call immediately to deliver an amazing experience with Ameyo’s Video KYC solution.
With an omnichannel customer engagement platform, you can easily reach out to the customers via SMS or chat to resend the video link.
Measure what Matters
Let the supervisors get a quick glance into the customizable dashboards that can help to make informed decisions.
- They can get a periodical Video KYC abandoned report and keep a check on officer SLA, auditor SLA, total KYC rejected, accuracy rate to analyze the performance of the campaign.
- They can then prioritize the KYC requests and automate the workflow by aligning it to the best-suited agents.
- They can analyze the detailed officer’s productivity report on business-specific parameters like accuracy rate, CSAT score, and number of KYCs completed.
Cost Reduction by 90%
Eliminate the need for a field agent who would travel to different locations to complete the customer verification process. Now, you can onboard a customer in less than 3 minutes with minimum cost.
- Let the RE officials onboard 18-20 customers in an hour
- Reduce the traveling and documentation cost
- Onboard customers from remote location online
Ease of Usability
It is as important to have an amazing in-product employee experience as it is for the customers. Ameyo’s highly flexible solution ensures to simplify the KYC process for banks and FIs.
- It allows the RE officials to attach short notes with the video call recording like customer details to retain the information.
- Agents/officials can dispose the calls with two-level dispositions such as “KYC completed,” “Call disconnected,” “System error,” and “KYC pending” to provide an outcome of the call.
- They can engage with the customers on multiple channels and take follow-ups for KYC completion.
- Automated reminders/notifications can be sent to the customers prior to the scheduled time.
Ace your Customer Experience
Customers find it very easy to open a bank account or request a sim card online. And, COVID-19 has made it very obvious that the customers are not willing to visit the stores or banks physically.
With Video KYC, you can deliver the customer experience that your customers are looking for:
- Customers can raise a request to apply for a credit card and will be happily available to complete their KYC online.
- Once the KYC is initiated, allow the customers to check the status of their ticket while sitting at home.
- Timely reminders can be sent to customers for KYC completion through their preferred channels like SMS, call, email, chat, etc. Voice Bot reminders can also be sent automatically to remind customers of the scheduled KYC appointments.
- After the completion of the verification process, you can send the credit card, sim card, and related documents at the address provided by the customer.
Accuracy of Video KYC Completion
Ameyo’s solution uses face recognition technology backed by AI to ensure maximum accuracy.
- First, OSV (Original Seen & Verified) check is done by the KYC officer using OVD (Officially Valid Documents) on the video call
- OVD auto extracts the customer’s details like their DOB, Address, Aadhar Card details, PAN Card details, etc. via OCR (Optical Character Recognition)
- KYC Officer then does a liveness check and verify customer’s OVD to perform the accuracy check and pass it for further verification