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 to the customer acquisition process. From the organization’s viewpoint, it requires them to appoint additional workforce for the KYC process, and that implies added cost. Also, the organisation risks the customer losing his 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., post which one of the two below things happen-
- 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 might result in multiple visits by the customer.
- On the other hand, eKYC is a more popular mode nowadays. 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.
Needless to say, the second approach is both more cost-effective and convenient for both the parties. But do you think the digitally native customer of today, would appreciate a visit to the branch? Probably not. He/she is more used to using apps on his mobile/tablet for all the transactions and this process for them is like going back in time. While they care for privacy and security as much as the organization itself, they would more than appreciate a quicker solution to the problem. Owing to this ask, a lot of sectors like insurance, banking, microfinancing, etc. are using biometrics, facial recognition as alternate tools or even building their own eKYC processes.
Another effective alternative here can be the use of video calls for KYC. EnableX facilitates your apps/software to have embedded video capabilities to allow a more convenient form of KYC. This, in turn, enables your customers to be able to complete KYC online without having to visit the branch or have someone come for KYC. This can be done in one of the two ways-
- Self-service KYC- This experience is akin to filling up a video-based questionnaire wherein a pre-recorded process flashes requirement on your screen, which you need to fulfil in real-time. After submitting the basic details of your ID/address proofs, it might dynamically ask you a few questions to which your responses are recorded. In the end, you can review your responses and submit the information. Due diligence is then performed on the recorded data by the organization you are applying to avail the services from.
- 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 it real-time remote verification also delivers a smooth and convenient experience.
This capability offered by EnableX is a cost-effective & speedy way to undertake the KYC process. It enables the organisations to ensure 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 authenticity and enhance the customer experience. For more details, please contact us.