Until January 2020 the KYC process mandated IPVs (in-person visit) by the Reserve Bank of India (RBI) regulations. However, things changed for the better when RBI released its Amendment to Master Direction (MD) on KYC on 9th January which allowed another method of conducting the KYC process – Video-based Customer Identification Process (V-CIP) or more commonly known as the Video KYC (V-KYC). At the time the nation was yet to experience the full-blown impact of the COVID-19 pandemic. However, this announcement came at a perfect time allowing the banks, NBFCs, e-wallet, and digital payments providers an opportunity to change the way KYC is done, forever.
Taking things to the next level - Benefits of Video KYC
Once the dust settled a bit and people got over their initial questions about this new initiative – what is Video KYC? How to get Video KYC? Etc, they started to recognize the benefits of the V-KYC process. Let us look at them in some detail.
Onboard Customers in 3 minutes
One of the biggest advantages of having Video KYC available is that it has significantly reduced the time taken to complete the KYC formalities. Unlike the pre-COVID era, when the whole process took anywhere from 3-4 days to sometimes a couple of weeks, it now only takes a couple of minutes. Reducing the time has not only makes the customers happy but also allows the banking official or KYC personnel to onboard more customers in less time.
No need to Handover your Documents
Carrying your original documents for verification can be unnerving for many. What if the documents are misplaced or lost or damaged? No one wants to go through the ordeal of getting new ID cards, Adhaar card, etc made. Doing the KYC verification over a video call takes care of that problem. The customer sits at their home and completes the OVD verification remotely. Thus, saving time, effort, and making it a whole lot easier.
Reduce KYC Costs by up to 90%
The conventional or should I say the pre-COVID 19 times required an in-person visit for KYC verification. However, with the pandemic staring us in our faces that is not safe anymore. Especially while following the rules of social distancing. However, apart from the health and safety benefits, another major advantage of the Video KYC process is its cost-effectiveness. And this is one of the biggest reasons why banks and other financial institutions love this. Now, they do not have to send the verification officer in the field and possibly conduct door-to-door verification. Thus, saving on the travel cost along with the time saving which adds onto other operational cost-benefit.
KYC Scheduling at Customers’ Convenience
One of the biggest woes or turn-off of the conventional KYC process was the time taken to get the whole thing done. And more often than not, it took a couple of visits due to lack of a document, photo, availability of verification officer, or time constraint on the customer’s end. All these obstacles ruined the customer experience. However, having the ability to schedule your video KYC from the comforts of your home significantly improves this. The customer can easily schedule their KYC appointment on the bank website or even reschedule it if needed. This allows them the flexibility and convenience to complete the KYC process easily and comfortably.
Making the Most of it…
We have seen the various benefits of Video KYC for banks, NBFCs, payment systems, and/or digital wallets. However, one must always remember that all of these are only possible with the best Video KYC Solution. You need a Video KYC software provider that can offer omnichannel customer experience and not just a standalone solution. Thus, allowing you to deliver excellent customer service on all fronts.