Modern problems need modern solutions. With the advancements in technology, more sophisticated ways of customer onboarding are being brought by regulators.
With the latest announcement of RBI’s regulations on accepting the regulated entities to use Video-based Customer Identification Process (V-CIP) for vetting of their customer’s identity and their proof of nationality, after SEBI, RBI has come forward to help Fintech, NBFC, and other Regulated Entities reach their target audience of tier 2 and tier 3 cities via assisted onboarding, paving way for more financial inclusion. We are calling it assisted KYC as the regulation states that without the customer executive verification live over the video, KYC wouldn’t be valid.
In this blog, we analyze how the newly proposed method of KYC processing will proportionally balance the stringency of identity vetting and being fraud-proof.
With the traditional method of KYC compliant customer onboarding, an authorized officer from the regulated entity will be verifying manually all the OVDs (Officially Valid Documents) which is famously recognized as Original Seen and Verified Process also called OSV in the industry. Here there is a couple of obvious problems such as,
- Professionally forged ID documents cannot be identified with the naked eyes by the Customer agent
- Overdoing of KYC procedure impacts customer dropouts and increased customer turnaround time
- Corrupted authorities and mishandling of documents by the authorities in REs can also boost up the onboarding cost and encourage more fraudulent activities and even NPAs (Non-performing assets) in some cases
As mentioned earlier, increasing stringency in the KYC procedure should not affect customer experience and comfort. DigiLocker initiative is one remarkable milestone in the digital pathway the regulators are taking to improve the ease of use. Offline Aadhaar verification by accepting the XML file of the Aadhaar is not only making the process simple but also ensures fool-proof identity vetting.
IN-D by Intain already solved above mentioned and other minor issues via our eKYC modules. We ensured that we help our customers to reduce the dropouts of their customers by having an easy, quick and hassle-free KYC check, with our eKYC and KYC module customer just uploads the OVD and they get a filled application form with multiple validations to make sure that the documents are authentic and there is no fraud. We ensure the existence of details such as name, address, DOB and other text details on the ID document against the respective ID card number
V-CIP famously known as Video KYC/Assisted KYC is the aftereffect of a long mature digital journey of RBI in improving fraud-proof customer onboarding without any compromise on customer experience. Video chat between the customer agent and client not only eliminates the need for the in-person presence of a Direct Selling Agent (DSA) with the client but also it holds as a proof of the whole video call and documents upload along with AI algorithms for facial recognition and liveliness dropping the corruption rate to almost zero. On the customer experience front, it improves customer engagement as an agent will be assisting the customer in real-time.
The agent must ask a variety of questions to avoid using pre-recorded videos for spoofing. Having the video connection encrypted end-to-end and the servers within the boundaries of the nation, complete control and security over the confidential visuals are achieved. Geo-tagging ensures the presence of the client within the national boundary as well.
As a proof of identity and address, submission of one or many OVDs such as Aadhaar, PAN card, etc., are mandated. Having Aadhaar XML in place, more secure customer onboarding is promised.
IN-D V-CIP solution takes the customer experience to the next level by extracting the data from the ID documents automatically and smartly auto-filling the application form along with the feature of Aadhaar XML direct download from the UIDAI site (In case customer doesn’t have the XML downloaded or it is more than 3 days old) reducing the customer turnaround time and dropouts. With our facial recognition, facial liveliness and video forensics algorithms in place, we are cutting down the fraud chances to negligible.
Proper maintenance of timestamp, screen recording of the client portal, mapping the customer agent with the recorded video before saving it a safe database and concurrent audit before opening the account, make the Video KYC solution surpassing earlier KYC methods and become a complete solution.
If you would like to see a live demo of our Video KYC solution, please reach out to us on firstname.lastname@example.org
We look forward to doing our Video KYC Product’s live Demo which is being appreciated by BFSI leaders to be one of the best Video KYC solutions they have seen in the market.