Ashutosh Kumar March 3, 2021 0

Why Video KYC is much needed in this Covid Period?

We all know how Covid-19 affected almost every Industry with their operations. While the healthcare industries were folded with more operations, the food and tourism industry were badly affected. The fintech and banking industry adopted many new technology to stay afloat during the pandemic. One of the things that was affected was the customer onboardig process by the Banks. The KYC process which needed face to face interaction got affected the most. But the improvement in creation of a Video KYC platform received a boost during the pandemic itself. The financial institutions developed an online onboarding platform which veridies the customer’s Aadhar, PAN card and other documents online.

The implementation of Video KYC verification process helped Financial Institutions to stay afloat in the pandemic which created a roadblock for the FI’s due to the restrictions imposed by the government. This digitization helped banks to onboard and verify customer’s documents online rather than face-to-face interaction.

How Video KYC is done?

The new Video KYC process uses the video Conferencing technology to onboard new customers. The process can be done from one’s home without visiting banks. The only tools required is the mobile phone with a good connectivity. The process of onboarding customers online has eased the complex process.

The process starts with customer being connected to the kyc portal through a video call. The process is mainly of two types:

• Assisted video KYC: This process is guided by an agent and walks the customer through steps of a Video KYC. The involved agent verifies and onboard the customer. Generally customers are required to show their government ID’s and then it is validated by the agent.




• Unassisted Video KYC: The customer is not asssisted by an agent and do all the checks and verification by himself.

The financial institution onboard a customers and is solely responsible for his/her documents and financial records. Verification, validation and also background checks of a customer is done by these institutions. Technology such as Artificial Intelligence and Machine Leraning are also in use to identify cases of money laundering and theft history of a customer.

The AI system or software also works throughout the KYC process and provides a confidence score which is then reviewed by the officials to confirm the onboarding of customers.

Conclusion

Video KYC has proved to be a seamless and enhanced customer onboarding process. It adds better experience to customers especially to those who do not wants to visit the bank and stand in a queue to verify their documents. Especially, in this age of Covid, a contactless services are in need and thus Video KYC is a technology that is here to remain and only grow.