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BFSI covid19 customer identification Customeronboarding Digital KYC Digital transformation DigitalKYC Digitalonboarding Face AI face match Fintech fraud checks fraud detection frauds Insurance KwikID KYC liveliness OCR Payment Banks Physical KYC Social Distancing socialdistancing spoofing V-CIP Video KYC VideoKYC Wallets

Minimizing fraud with Video KYC

Financial institutions are mandated by law to carry out KYC to meet strict regulatory guidelines. It not only allows them to understand who their customer is but also functions as a pre-emptive safeguard against any potential illegal transactions.

While carrying out stringent KYC is quite a meticulous process, it is being remedied through the use of Adaptive AI. Wherein technology implements the necessary KYC processes and also incorporates learnings gained by observing the behavior of customers to differentiate between legitimate behavior patterns and suspicious ones.

By automating the KYC process, Video KYC securely verifies identities whilst detecting frauds and spoofing attempts on a real-time basis. This is done via the assimilation of a clear fraud decision-making framework coupled with robust data gathering and analysis. The different types of fraud checks during Video KYC verification are as follows:

Document Tampering: Kwik.ID’s AI based technology enables a quick face match between the selfie & photo on the identity document of the customer to check if the person submitting the documents matches the picture in them to avoid identity theft. Through its access to the central database, it also quickly verifies the legitimacy of the documents.

Further, an inbuilt feature in the video KYC solution checks if the official government ID provided has been tampered with. A risk score is generated to determine the legitimacy of the document. This ensures that the documents provided are the originals and not just a color photocopy.

Location Spoofing: Kwik.ID delivers very robust location intelligence to identify safe customers. At the beginning of Video based KYC identification, the live location (lat/long) of the customer through web browser/mobile is captured and in subsequent steps instant OCR of the POA document is done. Both the locations are fed into the distance algorithm and the address of POA is converted to lat/long. The distance between both location is calculated & if distance < 300 meters (configurable) then the current location gets tagged as HOME LOCATION.

Security Questions: A security question that needs to be answered by the customer undergoing the video KYC is included in this process to ensure that it is a live video session and not a pre-recorded one made by hackers.

All these features are integrated into Kwik.ID’s Video KYC solution to make it a comprehensive AI and data-driven decision-making platform.  This will serve as a valuable tool for FIs and other organizations to easily and seamlessly validate actual KYCs from fraudulent ones on a real-time basis.

To know more, reach out to us on info@getkwikid.com

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BFSI covid19 customer identification Customeronboarding Digital KYC Digital transformation DigitalKYC Digitalonboarding Fintech Insurance KwikID KYC OCR Payment Banks Physical KYC Social Distancing socialdistancing V-CIP Video KYC VideoKYC Wallets

Physical KYC v/s Video KYC – Advantages & Limitations

KYC is essential to verify that the customers are who they claim to be and enables institutes to understand their customers better. This is vital for companies operating in the banking and financial sector that need to adhere to strict KYC and AML (Anti-Money Laundering) norms prescribed by regulatory authorities.

FIs also have to assure their customers that the sensitive personal data they are required to share to complete such procedures are in safe hands. While FIs need to ensure that the people signing up for their services are legitimate and not blacklisted or liable to commit illegal transactions, their clients need to know that their identity documents will not be misused.

Physical KYC requires customers to visit the company’s branch office to submit their identity documents and proof of address. While this is a very secure form of KYC, it is also very time consuming and inconvenient, especially for customers residing in towns where the company does not have a branch office.

Thus, a physical face-to-face KYC is not always a feasible option in a large country like India. So, companies need other alternatives to tap the vast market that exists in tier II and tier III cities and their suburbs.

Video KYC verification (approved method of KYC as per recent regulations) has emerged as a strong contender in recent times to resolve a myriad of KYC operational issues. It is a cost-effective and speedy way for organizations to ensure better customer experience while maintaining requisite process-adherence.

Unlike Digital KYC that still required a visit to the customer’s doorstep or nearest access point, video KYC makes the entire process digital. It not only provides companies remote access to potential customers but has also made the entire process paperless as there is no need for a wet signature. The videos and recordings taken during the KYC are encrypted to ensure data security.

Here are the overall advantages of Video KYC over Physical KYC:

Physical KYC Video KYC
INR 150+ per application INR 20-50 per application
8-10 applications per agent
per day
100+ application per agent per day
Asynchronous identity check Real time identity verification
Delayed audit; error prone Concurrent audit
Outsourced vendor; data risk On premise; secure – RBI compliant
High training & operational cost Negligible; on-job prompts
Susceptible to customer, DSA, employee fraud Extremely potent against fraud

As a fast, regulatory compliant and secure KYC process, video KYC leaves everyone feeling a winner. The additional value generated through cost reduction makes it a must-have in the KYC paraphernalia. However, the only limiting factor of Video KYC is the heavy dependency on network bandwidth. But with the penetration of mobile handsets into every household, coupled with a minimum 4G data offered by telecom operators, this issue can be tackled smoothly.

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BFSI customer identification Customeronboarding Digital transformation DigitalKYC Digitalonboarding Face AI face match Fintech KwikID KYC Payment Banks Social Distancing V-CIP Video KYC VideoKYC

Is your organisation eligible for digital KYC?

Recent regulatory changes have enabled financial institutions (banks, NBFC, fintechs, lending start-ups, insurance, etc.) to perform Video based KYC identification to on-board customers remotely.

  • Amendment to Master Direction (MD) on KYC by RBI, 9th January 2020
  • Clarification on KYC process and Usage of Technology for KYC, by SEBI, 24th April 2020
  • Press release by IRDA regarding Paperless KYC process through Aadhaar Authentication Services of UIDAI, 24th April 2020

Digitally streamlined KYC verification has spread through the industry like a breath of fresh air, even as it eases the customer onboarding process for financial and non-BFSI companies.

Owing to the much-needed easing of the burden on time and manpower costs, industry experts have welcomed this decision allowing them to leverage digital channels for the Customer Identification Process (CIP). The video-based customer identification process will make presence-less and paperless banking a reality.

This Video KYC verification is carried out by capturing a live photo of the customers and their official valid document during video sessions using smartphones. Geotagging done by capturing the latitude and longitude of the location where the photo was taken will confirm if the customer was in India while submitting the proof.

As customers do not need to submit physical copies of identity proof, the possibilities for identity theft are eliminated. This, coupled with the advantages of lower KYC costs and seamless onboarding experience for borrowers, definitely makes it an attractive alternative to the current physical KYC.

Even though this method is powered by artificial intelligence (AI) and advanced face-matching technology to establish the user’s identity, the real onus of customer identification remains with the official. Hence, it is mandatory that this task will have to be performed only by officials of the Regulated Entities (REs).

This has definitely come as a blessing to fintech start-ups as they will not be required to invest in any equipment nor bear the cost of sending an official to remote locations for customer identification. Any organization looking to reap the benefits of Digital KYC will need to find the perfect technological partner who can provide them with the right tools to simplify their customers’ KYC journey.

The easing of the KYC norms by the Government might have made your company eligible for Digital KYC but is your organization tech ready to harness it?

To know more about Kwik.ID’s seamless e-KYC solution, please write to info@getkwikid.com.

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BFSI Customeronboarding Digital transformation DigitalKYC Digitalonboarding KwikID KYC Social Distancing V-CIP Video KYC VideoKYC

4 Easy Steps to Improve Customer Onboarding Experience

38% of banking industry customers claim that customer experience is the most important criterion in choosing an appropriate bank.[1] Creating rewarding and positive customer experience should be a priority for all financial institutions (FIs).

Advancing with digital times, most customers today expect their experience to be convenient, friendly, digital and personalized. This is only possible if they incorporate the best Video KYC tools and bring about Digital KYC verification for the customers.

A large number of customers drop out of the onboarding process because of frustration with paper or the volume of information required.[1] According to Accenture Banking 2020[2], digital transformation has improved customer experiences by up to 25% in the banking sector alone.

The onboarding process is the first point of interaction between a financial institution and its customers, and a great onboarding creates the foundation of a longer value-driven relationship. The current offline and physical onboarding of new customers is a long process and is especially difficult for customers in remote areas, far from branches. Institutions have been investing in digitizing the onboarding process for years now, creating experiential improvements, rendering Video based KYC identification possible, with lowered costs, and higher value for customers.

We feel that great onboarding is built on some easy principles – Some easy steps for improving the onboarding process to provide users with the experience they desire are as follows:

1. It’s all about first impressions

In the digital medium, FIs have less than 20 seconds to persuade a potential customer to stay on with their site/ offer. Also, digital channels are converging. That is why developing an effective landing page for both mobile and laptop for potential and returning customers is where truly top-quality customer acquisition/onboarding begins. The no-frills example of Google Search page is one of the greatest case studies in this area.

2. Do not limit a customer’s options

Financial institutions need to cater to omnichannel customer journeys. Customers may begin their journey on one channel and can complete it via another channel. Providing different channels (mobile application, website, call centres, business correspondents and/or in-person), managing critical information flow seamlessly in real-time, and creating Aha! moments gives customers the required flexibility and increased satisfaction.

3. Be dynamic

Traditional experiences were static. If you ask the same question twice, you get the same answer. Modern technologies bring dynamism to the operations. When people repeat a question, it often means that they were not satisfied with the first answer. The onus of better comprehension is suddenly on the institution. This is where most leading institutions use advanced analytics, machine learning and AI to understand customers and recommend services/ offers to them. Most of these capabilities are back-end investments to create front-end moments. But for onboarding, our focus should be to minimise the effort that a consumer has to make while enrolling.

4. Reduce average customer TAT for onboarding

In certain lending journeys, for a customer, the end to end TAT (from being a first stage lead/ prospect to starting her journey with the institution) can be more than 30 days! In the current age and time, it sounds like a civil offence to make someone wait that long for delivering the product/ service.

Whether it is the core components, such as KYC for a regulated entity, or process ingenuities, such as Tele-verification/ Tele-PD, customers expect ease, flexibility, and instant gratification.

For instance, the entire onboarding journey for a FI can be 3-5 minutes, without significantly compromising the expected prudence/ risk management/ policy standards. From Document/ ID verification, Video KYC, bureau checks, referral checks, tele-verification, document signing, payment/ bank account verification, disbursal – most processes are ready to be moved to their digital equivalents.

With RBI approval of Video KYC, banks enable their customers to complete the KYC process from the comfort of their homes using Video based Customer Identification Process. This improves the customer experience and sets a positive tone encouraging further cooperation.

But how can banks conduct Video KYC?

Kwik.ID by Think Analytics provides for instant verification through the usage of cutting-edge technologies like OCR, Database verification, Face Matching, Liveliness detection and Video KYC in simple UX supporting Aadhaar XML, PAN, DL, Passport & Voter ID.

To find out more about how Kwik.ID can help you ease the process of customer onboarding, do write to us at info@getkwikid.com.


[1] https://www2.deloitte.com/content/dam/Deloitte/lu/Documents/technology/lu-digital-onboarding-financial-services-digital-natives-112017.pdf

[2] https://www.accenture.com/us-en/insights/banking/commercial-banking-top-trends-2020