Past and the Future of Video KYC Process

As you already know, KYC(Know Your Customer) term came from the conventional
investment world, with the proper detailed information about the risk appetite from
investors and banks, investment expertise and financial position for their clients. During the
time of opening a bank account, banks complete this KYC strategy. With time, banks must
keep on upgrading the KYC of each client. In 2002, KYC formally came into existence in India.
In 2005, the RBI also directed the banks to be compliant with the KYC master circular
process.
Though digitization started quickly, we had a long way to go.
What is Video-KYC? And Everything You Should Know About It
Traditionally, either consumer, or the bank has to be present physically in front of each
other. With the acceptance of digital methods in practice, IPV still alluded the customers.
Other digital methods restricted the per annum transaction to a certain extent. Right before
the COVID mayhem, RBI formally introduced Video KYC as a valid method of onboarding the
customers.
Through a video call, the client can straightforwardly chat with a Financier, give all the
personality records to confirm who they are, and finish the account opening steps in many
minutes. The Video KYC helps you remotely link customers without the need for a
physical “IPV” test. A bank officer reaches individuals through a live video call, and they
ought to submit identity confirmation virtually in the Video KYC process.
It is also referred to as Video KYC, Digital KYC, or Visual Customer Identification (V-CIP). The
recently allowed video-KYC guarantees to supplant the out-dated KYC framework totally,
with clients now not required to follow it up with physical confirmation of documents.
When both identity and record is confirmed, the outcomes are sent to the back-office.
Along with it, Video KYC lets you open an account immediately or take out a loan too.
Future of Video KYC (and finance)
Components like reliability and versatility of Video KYC arrangements have been most talked
about and talked about. Video-KYC can prove to be a hassle-free norm in the future even

after the battle of COVID-19 too. KYC Video could be a significant benefit to investors, prepaid
wallet players, insurance firms, private and public banks, financial securities, and nonbanking
entities.
It is a safe way of achieving a clean consumer base for the banking industry and particularly
Fintech companies. KYC is the first step in this process, and we hope that will bring you to us
as your Video KYC solution partner and be a significant move towards the customer.
Who is offering Video-KYC?
1. The banks said in their press releases that RBL bank and IDFCFirst bank launched video
KYC for the opening of savings bank accounts and that IndusInd bank has enabled KYC for
the opening of savings accounts and has tied up BankBazaar for applicants for credit cards.
2. According to Deepak Sharma, the video feature of KYC will have its learning curve, chief
digital officer Kotak Mahindra Bank. “This offers the user the ability to receive a restricted
KYC account that can be transformed into a full KYC account due to network problems or
records.
3. And many many more have started using it by Sep 2020. In fact, vendors are even getting
replaced while I am writing this.
How Can Video-based KYC Be Beneficial For India?
Why is V-KYC such a big deal? The brief reply is that it serves as a reliable software for social
distancing. The recent outbreak of social distance may have been alarming, and our daily
financial activities could have been limited. There’s some good news here, no worries! To
eliminate the conventional paper-based KYC approach for identifying the consumer, the
Reserve Bank of India (RBI) has taken an essential step towards digitalizing the KYC
mechanism for the ecosystem. Many banks and financial agencies have begun introducing
guidelines for an effective KYC video operation.
That is how V-KYC can serve as a critical success factor:

a) Comfort: The video KYC method can be done with home comfort. You only need a laptop,
smartphone, or tablet that is linked to the Internet.
b) Less Time Consuming: The Time for the document review is less. It can be accessible to
complete the procedure, which took weeks sooner in a matter of days.
c) Safer: Video KYC test eliminates the need for customers to visit a branch or exchange
paper copies or wait for days to complete the account opening process. That will improve
the conditions for social distancing, the way bank accounts are opened in the future, and
significantly reduce the boarding cost.
d) Reliability: In a nutshell, it enables fraud prevention and error checks. It also stops
malicious behavior from occurring and corruption practices such as money laundering.
e) Cost-Effective: For both parties, KYC costs between Rs.50 and Rs.500 while V-KYC cuts
cost significantly, allowing more consumers, no matter where they are, to be on board
quicker. Video KYC gives customers a more convenient choice when raising their costs
during onboarding.
f) Efficiency: The face to face KYC is unpredictable and lengthy due to which only 3 KYCs can
be performed a day, but Video KYC comes up with more flexibility and only requires 2–10
minutes for the entire sessions reducing turn-around time while not being limited
geographically.
Details Required in the Process:
The following steps are required to proceed:
1. Fill up the necessary details on the online form.
2. The customer’s picture should be live and not a photo-of-a- photo. Banks can use facial
recognition technology to validate the client with an image of the documents on camera.
3. Provision of bank consent to fetch Aadhaar details and enter the PAN number or conduct
an e-PAN verification.
4. Live customer locations need to be geo-tagged to ensure that they are located in India.
5. The session requires both the user and the staff of the regulated entity to be present
simultaneously.

Bottom Line
Video-KYC serves as an utmost foolproof innovation to set a social distancing and has a long
way to go. Customers can now update or complete their KYC process and continue to use
the loan service. Considering the current digital pandemic scenario, this is the only way of
life. So what do you think of Video-KYC?
Source: https://blog.signzy.com/future-of-video-kyc-and-the-past-3a85db9713f9