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Addressing the Five Challenges Customers Experience during a KYC Process

KYC compliance is a double-edged sword for financial institutions. On one hand, customers expect quick onboarding with minimum checks and documentation. On the other hand, regulators penalise financial institutions for inconsistencies in identity verification and risk assessments. To bridge the gap, banks, NBFCs and fintech companies continuously focus on revamping their KYC processes to comply with the latest norms while providing customers a seamless onboarding experience.

Here we address the five common challenges customers face during the KYC process and how financial institutions can resolve those using Video KYC (V-KYC). Reach out to us to know more about how Kwik.ID can help you fast-track your KYC compliance.

Challenge 1: Geographical Constraints

The traditional KYC process required customers to submit the application form and the necessary documentation in person. This meant that customers could only opt for banks in their vicinity, based on their current geographical location.

Solution 1: Online Video KYC with Geotagging

In the V-KYC process, the entire verification procedure (including remote onboarding) is conducted online through a live video call. Instead of standing in long queues, a customer can simply schedule a call by registering on the website. Even address verification happens in minutes through geo-tagging using Google Maps.

Challenge 2: Elaborate Documentation

Traditional KYC is a tedious process fraught with endless paperwork. It usually involves lengthy application forms, photocopies of identity and address proofs, and other documents like bank statements and utility bills.

Solution 2: API-Integrated KYC Verification

APIs that aggregate primary data from various verified sources, using e-documents like OVD (Officially Valid Documents) or PAN card, can replace the need for paper-based documentation. Additionally, the use of AI-powered facial recognition tools using Video based KYC identification ensures better accuracy than manual verification.

Challenge 3: Delay in Onboarding  

Conventionally, onboarding is a laborious process. Customers in need of urgent funds often turn to other (informal) sources at higher interest rates given the delays in assessment and onboarding.

Solution 3: Real-time KYC verification

Since identification happens in real-time digital, it removes the need for physical signatures and visits from bank officials. This feature makes the onboarding process smoother, allowing customers to have quick access to financing.

Challenge 4: Dropping out of the Process 

Given the prolonged KYC process, several customers often drop out midway as they often patience (or the need for funds). Financial institutions lose out creditworthy customers too in this process.

Solution 4: Visibility and Tracking 

V-KYC helps customers complete processes faster while also providing visibility on the status of the verification. Banks can ensure customers finish the Video KYC for Banks by tracking what percentage of documentation is completed. 

Challenge 5: Cost of Compliance

Traditional KYC involves high costs due to factors like going to the bank in person, procuring several documents, etc., compromising a customer’s time and money. Financial institutions also spend significant amounts in verifying KYC, which is an additional burden to customers in the form of service charges and processing fees.

Solution 5: Internet-powered KYC verification

V-KYC’s internet-powered processes with the help of trustworthy Video KYC vendors make it accessible, affordable and convenient. It also enables considerable cost savings for the service provider, making financing more cost-effective for the customer.

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Looking into the future of Digital Business

The pandemic has changed our ways of working. “Phygital” seems to be the new normal and digital the future. Many businesses had already made the offline to online shift much before the pandemic, while the last six months have witnessed only online transactions and dealings.

Organisations have also revisited their priorities as they find new solutions to accelerate the business growth and aim for long-term success. Traditional face-to-face methods have been replaced by tools like online wallets, e-commerce business, Video KYC for banks and insurance firms, AI-led instructions and more.

Organisations will soon start building their digital platforms while utilising advanced analytics with greater intensity. For example, DBS Bank understood the need to do more for its customers and adopted a RED mantra: Respectful, Easy to deal with, and Dependable. This involved tech-driven processes because they strongly believe that making banking joyful should involve making the ‘banking’ part, invisible.

Here’s how the country is paving the path for digital business growth.

Digitising Sales and Customer Processes

Organisations have started to think about digital tools and techniques, particularly for selling the product and meeting client measure prerequisites. Companies are adopting and implementing a host of applications, digital payment methods, self-service platforms, digital documentation, onboarding and electronic signatures to ensure that internal operations, income and revenue continue to flow. Indeed, even the smallest organisations have taken to digital to keep the client inflow flawless, by embracing the most recent AI innovation and apparatuses like face recognition and biometric signatures, and they don’t appear to be returning to their conventional ways in the near future.

The finance business, including banks, NBFCs, fin-tech, insurance, and numerous others presently pick online processes to make business simpler for clients, including opening an account through video KYC. Clients presently don’t have to visit the branch to finish all the formalities and fill lengthy forms. Video KYC speeds up the cycle guaranteeing they are onboarded in only two minutes!

Digital Marketing to Customers

The manner in which organisations market their products is developing quickly. Given that industry events have shut down because of the pandemic, B2B organisations like Slack and Zendesk have embraced better approaches to connect with clients by means of their digital advertising that has created new business leads. Digital content, particularly promotions guided through online media stages should be information driven, customised and shown to the correct clients for a continued boost of sales and advertising. This can likewise help improve productivity and ROI.

Empowering Employees with the Right Tools

To ensure that representatives meet their maximum potential it is imperative for organisations to receive innovation that makes activities and cycles simpler and more effective. Representatives should be instructed about the most recent advances and prepared in the best way to manage new clients, digitally, for maximum consumer loyalty.

For example, Kwik.ID, our Video KYC tool is enabled with customer queueing facility to reduce customer repetition. The analytics dashboard helps agents manage their time more efficiently. Finally, the Neuro Linguistic Programming software ensures agents understand and guide customers better, and (instantly) resolve their issues.

Utilising the Cloud for big business applications, planning and management, workforce management, billing and many others, not only provides easier employee access to technology but also helps manage cybersecurity better as everything is housed together.

It is significant for associations to have all the documentation and client information in one spot—regardless of where the agent or employee is, information can be accessed from a distance and work needn’t stop. At Think360, we suggest dealing on-the-go, which our video KYC apparatus empowers, by storing all the information in one spot.

In the coming months, online instruments like advanced banking, e-wallets and Video KYC India can essentially profit financial backers, insurance agencies and specialists, banked and unbanked areas, non-banking entities and numerous others. While these tools support business, they additionally help fight sluggish business attributable to COVID, while guaranteeing that work moves consistently from any place across the globe.