The Impact of Digital KYC on Financial Institutions

In a world known for digital communication, financial institutions are actively adopting digital Customer Onboarding Solution to ensure a smooth and simple onboarding for their customers. From adding a new customer into their business workflow to monitoring all the transactions digitally, they have completely changed their way of working with the customers.Digital KYCplays a very important role during this process as it helps financial institutions to know who their customers are. Here in this article, we will discuss the role of the online KYC process in the Indian market and how it made a significant impact on their way of working.

What is Aadhaar eKYC Online?

UIDAI has launched an Aadhaar-based online KYC process that allows Aadhaar holders a convenient and paperless for their identity authentication. Aadhaar eKYC Online completely eliminates the need for physical presence for various processes including opening a bank account, investing in mutual funds, and so on. Aadhaar eKYC is a very simple and straightforward process as you don’t need to provide multiple photocopies of your documents in order to prove your identity, or address proof.

This process is much faster than a traditional paper-based KYC process where you need to submit multiple documents and need to wait in long queues. With this Digital eKYC Solution, you can complete the verification in just a few steps by providing your Aadhaar number and otp received on the registered mobile number. Any verified service provider can use this method so that they can access your personal information by using your Aadhaar number.

What are the Different Use Cases for eKYC?

The Aadhaar-based KYC process is a time-saving solution for financial institutions. The Different Use Cases for eKYC include:

• Account Opening
• Document Verification
• Fraud Deduction
• Reduced Operational Cost
• Ongoing Monitoring

Use case of implementing Aadhaar eKYC on Banks:

Nowadays customers are incorporating Digital Solutions to manage their money. As a result, financial institutions are adapting more convenient and efficient ways for their customers so that they can provide them with a reliable platform to manage their online transactions. The Digital KYC process stands as one among them which eliminates the need for physical documents to open a new account or to verify the address.

From enhancing customer satisfaction to preventing fraud, here are some of the most used cases of digital KYC solutions in financial institutes:

Efficient Customer Onboarding:

Nowadays financial institutions are using advancedCustomer Onboarding Softwareso that they can provide a smooth onboarding experience to their customers. They have integrated eKYC solutions into this software so that there is no need for a physical bank visit to open an account. By using this software, new customers can complete their verification process to open their accounts.

Fraud Prevention:

The Aadhaar eKYC Online  pocedure guarantees that the account is being accessed and the verification process is being completed by an authorized online user. To reduce risk and fraud verification, this process is encrypted and has enhanced security features like biometric verification and OTP-based authentication.

The eKYC method reduces the danger of online fraud and money laundering by utilizing cutting-edge AI technologies. It also helps in minimizing regulatory compliance to meet business standards.

Better Customer Experience:

In this bustling life, customers are now looking for time-saving processes, so that they can make the most of their time. Fintech industries are now focusing on the comfort of their customers by providing them with a Digital eKYC Solution, which takes only a few minutes to complete. This solution basically creates a system that delivers a complete banking solution from uploading documents to verifying the identity. This provides the next level of flexibility and convenience to the customers and helps the industries build long-term relationships with their clients.

Improved Operational Efficiency:

Digital KYC helps reduce human errors and helps banks to improve their operational costs. This removes the requirement for manual inputs, in which bank staff members must manually enter all of the client information to open bank accounts. They are under a great deal of pressure during this process, and human error is a real possibility. The adoption of digital KYC has resulted in increased operational efficiency and decreased stationary costs for fintech companies.

How Digital KYC for Mutual funds different from Traditional KYC process:

The Digital KYC process is a bit different from the traditional paper-based KYC process for mutual funds. In the paper-based KYC process, the applicant needs to submit multiple documents including the KYC registration form signed to form the investor, and identity documents attached with the application such as a PAN card, Driving license, and others. Once the required copies of the self-assessed documents are ready then the investor needs to physically visit the verification office so that he can verify his identity and income proof.

During the traditional KYC process, if there is any need for re-KYC of the documents or investors have made any changes in their documents, then it requires a re-visit to the verification office.

But MeonDigital eKYC Solutionhas completely eliminated the need for physical verification of the documents and does not require to visit the office. The whole process has now become very simple based on the aadhaar verification. To proceed with the Online KYC process, you will need to ensure that your phone or email is linked with your aadhaar number.

The Aadhaar eKYC online method is the latest trend in account opening, based on OTP-based authentication and document verification technology. Users follow a step-by-step process for account opening, and they do not need to physically visit a bank branch for KYC verification. This customer verification process is perfect for businesses that need help with complex KYC methods for their customers’ identities.

Conclusion:

In conclusion, we can say that the Customer Onboarding Solution has redefined the process of welcoming a new customer. By integrating eKYC solutions in customer onboarding, financial institutions have provided an efficient and improved way of verifying the identity and address of the customer. It not only enhances the customer experience but also provides a high layer of security to meet digital compliance and regulatory requirements. I hope you will find this article and this will provide you a details idea of how digital KYC solutions are changing the way of opening accounts.

original reference – https://aadhaar-ekyc.odoo.co