The market at the moment is such that it increasingly demands innovation and personalized financial technology services. Financial institutions now cannot ignore these demands or else they risk losing out on customers to the competition. This has forced banks to keep up with the trends.
For most organizations today, data security and customer identification are of utmost importance. It helps them understand the risk associated with each customer. This process of collecting a customer’s identity, verifying it and performing due diligence on the data is called Know Your Customer (KYC). Although inevitable, KYC ends up adding an extra layer of effort & time to the customer acquisition and onboarding process. From the organization’s viewpoint, it requires them to hire additional resources for the KYC process, and that implies incremental costs. Also, the organization risks the customer losing interest due to a prolonged onboarding process. Hence, organizations are constantly on the lookout for innovative technologies to make this process easier.
A KYC process typically entails either a customer walking into a branch or checking for an agent’s availability for a home visit and producing his ID/address proof, photograph, etc., after which either of the two consequences follows-
- Some organizations collect the documents and manually check with the Government database the sanctity of the information provided. This process is paper-based, takes much longer and even results in multiple visits by the customer.
- On the other hand, eKYC is a more popular mode now. Here, a customer visits the branch, and his documents are scanned by the representative, a photograph is clicked live, and the information is entered in an application that is connected to the Government database for verification.
The second approach is clearly more cost-effective and convenient for both parties. But do you think the digitally native customer of today would appreciate a visit to the branch? Definitely not. Customers are now more used to using apps on their mobile/tablet for all the transactions. While they care for privacy and security as much as the organization itself, they would appreciate a quicker solution to the problem. A lot of industries like insurance, banking, microfinancing, etc. are using biometrics, facial recognition as alternate tools or even building their own video KYC processes.
This process is now getting further enhanced by using Video all the way! Companies & KYC solution providers are embedding real-time video calls within their eKYC solutions and making them vKYC a powered one.
EnableX as a full-stack CPaaS and communications API provider facilitates your apps/software to have embedded video capabilities in the KYC & customer identity verification process. This, in turn, enables your customers to complete video KYC online from wherever they are. This can be done in one of the two ways-
- Self-service KYC- This experience is akin to filling out a video-based questionnaire wherein a pre-recorded process flashes a requirement on your screen, which one needs to fulfil in real-time. After submitting the basic details like ID/address proofs, it dynamically asks a few questions to which the user’s responses are recorded. In the end, the user can review responses and submit the information. Due diligence is performed on the recorded data by the organization.
- Interactive KYC- Alternatively, the customer can get into a video call with the representative who can verify the information uploaded and authenticate the customer in real-time. Not only is video KYC a quicker process, but its real-time remote verification also delivers a smooth and convenient experience.
The EnableX Video Calling API & SDKs are a cost-effective & speedy way to implement live Video calling into an existing KYC process. It enables financial organizations to ensure a better customer experience while still maintaining the process-adherence. Further, it simplifies the customer acquisition process, considerably.
This is achieved by leveraging the cloud-based CPaaS (Communication Platform as a Service) which offers software development kits (SDKs) and application programming interfaces (APIs) that can be embedded in your organization’s applications/websites. Not just FinTech companies, this is beneficial for any organization that is looking to verify customer identity and enhance the customer experience.
Try Video KYC now!