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Overcoming Challenges in the Customer Onboarding Process with Video KYC

Amit Das

Table of Contents

KYC compliance presents a dual challenge for financial institutions. While customers demand quick onboarding with minimal checks and documentation, regulators impose strict penalties for any inconsistencies in identity verification and risk assessments. To address this, banks, NBFCs, and fintech companies are constantly revamping their KYC processes to meet regulatory norms while delivering a seamless onboarding experience to customers.

Customer Onboarding

Here, we explore five common challenges customers face during the KYC process and how financial institutions can resolve them using Video KYC (V-KYC).

Geographical Constraints

The traditional KYC process required customers to visit a branch in person to submit their application forms and necessary documentation. This limited customers to selecting banks in their vicinity, creating inconvenience for those located far from branches.

Solution: Online Video KYC with Geotagging V-KYC allows the entire verification process, including remote onboarding, to be conducted online through a live video call. Customers can simply schedule a call via a website or app, eliminating the need to stand in long queues. Address verification is also streamlined through geotagging tools like Google Maps, enabling quick and accurate assessments.

Elaborate Documentation

Traditional KYC processes often involve lengthy forms and a host of physical documents, including photocopies of identity proofs, address proofs, and additional documents such as bank statements and utility bills.

Solution: API-Integrated KYC Verification With API integrations, financial institutions can aggregate data from verified sources, replacing paper-based documentation with electronic formats like OVDs (Officially Valid Documents) and PAN cards. AI-powered facial recognition tools in Video KYC ensure better accuracy than manual verification, reducing errors and time.

Delays in Onboarding

Conventional onboarding processes are time-consuming, forcing customers to wait for days or even weeks to access financial services. This often drives customers in need of urgent funds to informal sources with higher interest rates.

Solution: Real-Time KYC Verification Video KYC enables real-time identification and verification, removing the need for physical signatures and in-person visits. This digitized process significantly reduces onboarding time, ensuring customers have quicker access to financial services.

Customer Dropouts

The prolonged nature of traditional KYC processes can lead to customer frustration, resulting in high dropout rates. Financial institutions risk losing creditworthy customers due to these inefficiencies.

Solution: Visibility and Tracking V-KYC ensures faster completion of the verification process while providing real-time updates on the status. Banks and financial institutions can track the progress of documentation, encouraging customers to complete their Video KYC efficiently.

High Cost of Compliance

Traditional KYC processes incur high costs for both customers and institutions. Customers bear expenses such as travel and document procurement, while financial institutions face operational costs for manual verifications.

Solution: Internet-Powered KYC Verification By leveraging internet-powered V-KYC solutions, financial institutions can reduce the costs associated with compliance. Video KYC vendors provide affordable and accessible solutions, cutting down on operational expenses while offering customers a more cost-effective and convenient experience.

Transform Your KYC Processes with Kwik.ID

Kwik.ID offers innovative solutions to address these challenges through its modular, platform-independent Video and Digital KYC offerings. Our V-KYC solutions are compliant with regulatory mandates from RBI, SEBI, IRDAI, and PFRDA, ensuring secure, efficient, and customer-friendly KYC processes.