How Has Digital Kyc Transformed The Methods Of Financial Institutions?

 

The process of waiting in long lines to submit the KYC forms is now over. Different banks and other financial institutions no longer encourage an such action. Thanks to the innovation of digital KYC, customers can now complete their KYC anytime, anywhere using their mobile, tablets and laptops. This technology has recently received more recognition during the Covid scenes in 2020.

Earlier, the customer onboarding KYC is an important process. But now, with the introduction of digitalization, all institutions have started to slowly adapt to this method.

Facilities provided by Digital KYC

There are several facilities provided by digital KYC. Some of them include:

Optical Character Recognition: Earlier, all the actions were done by hand but now, AI technology had speed-up the process. The OCR scans all kinds of government documents like driving licenses, passport, etc in no time.

Geo-Tagging: In a video KYC, the geographic location of a customer can be easily traced due to AI technology. This also reduces KYC fraud for the customer.

Face matching and Liveness Check: Under the customer onboarding KYC, Artificial intelligence uses face matching technology so that the picture or video of the customer can be verified with the customer's original face. This method also enhances the system of digital KYC.

ID forgery Detection: The machine uses algorithms to verify the identity of the customer to that of the images.

Advantages of using Digital KYC in the different financial sectors

Since our lives are very much dependent on the growing technology, we expect every sector, including the banks to work faster too. This is why digital KYC has seemed to be so much in demand. Some of the advantages of using digital KYC include:

They work instantly: The e-KYC services offered by financial institutions are very less time-consuming and happen almost instantly. The work gets done in a paperless manner without and any kind of manual involvement.

Reduction in failed client acquisitions: Since they take lesser time, clients have stopped complaining about the delay in the work process. In fact, about 45% of the population is now eager to open their accounts with banks.

Reduction in KYC fraud: Earlier, when the process was manual, there were high chances of fraudulent activities. But with the introduction of e-KYC, such activities have become a factor of challenge. In the digital world, these systems are now much more advanced than the old style of working.

Improves customer experiences: The work that took almost the whole day to be completed manually,now takes even lesser than an hour. For this reason, customers have started abandoning the ancient KYC ways and accepting the world of digital KYC.

e-KYC has not only been beneficial for the banks but also the different sectors. Through this method, several pieces of paperwork turned paperless and became less time-consuming. Also, the records of customers are no more scattered around but are rather kept together for a lifetime without holding a lot of space.