In this blog, let's understand what VKYC is and the RBI mandates associated with it.
Video KYC by Karza Technologies makes the onboarding process the proverbial piece of cake. With smartphones proliferating in India, it has the potential to reach the remotest village in India. It can also provide banking services to people with no bank in the vicinity. Video KYC is here to spark a banking revolution, and the pandemic has just triggered that revolution.
Banks take an average of 6 days to onboard new customers mainly due to the scope and range of (Know Your Customer) KYC norms and the overwhelming complexity of KYC regulations.
KYC compliance exerts tremendous pressure twofold - on one side, the customer expects a quick onboarding process with minimal identity checks and documentation; on the other side, regulatory authorities ruthlessly penalize them for inconsistencies in identity verification, insufficient authentication, and discrepancies in risk assessment.
NBFCs and Banks constantly focus on revamping and updating their KYC processes to comply with and adhere to the latest norms to avoid the punitive damages from rebuttal actions taken by the regulators and, at the same time, provide the customer a seamless and enriching onboarding experience.
To bridge this gnawing gap and considering high turn around time it takes to onboard a new customer and the compulsions imposed by the recent COVID-19 pandemic, Video KYC is the best option.
The adoption of Video KYC as a method of due diligence, was further expedited by the fact that the RBI in January 2020, as a significant relief to financial institutions, allowed video-based KYC through the Video Customer Identification Process as a method to perform due diligence for the customer.
In this blog, let's understand what VKYC is and the RBI mandates associated with it.
What is Video KYC?
Video KYC is a customer identification and due diligence process that enables banks and other financial institutions to perform customer KYC remotely by undertaking an encrypted audio-visual interaction with the customer to obtain and verify identification information. It is the only method available to execute a full KYC remotely.
Video KYC has been the primary tool to onboard customers remotely during the COVID-19 pandemic as we adapt to the new normal where movement is highly restricted, disallowing or discouraging prospective customers from visiting banks, submitting their documents, getting their KYC done, and stitching a new financial relationship with a new bank.
Karza Technologies' Video-KYC can be done remotely from anywhere. The only requirements are an internet connection and documents readily available to you. During the audio-visual interaction, you would be flawlessly directed to show the necessary documents and be asked basic questions with the answers available on the screen of both the agent and the customer, which acts as a potent layer of authentication.
Before the interaction, you will be asked to fill in personal details. Those details will be authenticated during the exchange with the relevant information available on the document imbibed into the system through the OCR feature for identity verification. Aadhaar card details are fetched from the UIDAI website using the OTP-based eKYC method, or the Aadhaar XML file is sourced and extracted based on the details provided.
Our Video KYC comes equipped with three dashboards, which are significant to understand the functioning of VKYC by Banks and Financial Institutions.
The VKYC system has three distinctive and interactive dashboards, all interrelated to each other but distinct and unique in their purpose:
The Agent Dashboard is obviously to help carry the verification process. It is the dashboard through which the audio-visual interaction occurs through the video call.
The Agent dashboard provides all the intricate, elaborate details the customer has filled in before the verification call, which the agent can impeccably access. Based on the call, the exact location can be tracked.
There are other ancillary details such as speed of the broadband connection, video resolution, etc. It has state-of-the-art and robust face-matching and detail-matching capabilities. It has an ingenious OCR feature embedded into the system. It faultlessly follows a chronological flow of steps to facilitate seamless and hassle-free onboarding.
Here banks can extract the entire and comprehensive KYC report, which portrays the applicant details as filled in by the customer before the Video KYC process vis-à-vis the PAN card details and Aadhaar card details along with their match scores and help identify the pain points that led to the rejection of the application.
Banks can not only access the entire audit trail of the interaction, but can also go through the Agent's recording of the whole process, reconstruct the complete stream of interaction as it happened, and pinpoint issues or provide suggestions of improvement to the Agent.
The method of audit occurs concurrently with the Video KYC process. Banks and financial institutions can get the synopsis of the entire daily activity, and accordingly, they can monitor their team's performance.
Banks and financial institutions can oversee the performance of its entire team over a period of time: be it daily, weekly, or monthly. This is the most crucial performance-tracking tool. The onboarding process as a whole is encapsulated in this dashboard.
Banks and FIs can track the performance of every agent in the team based on how many calls were completed, how many calls failed, how many customers were onboarded, how many were rejected due to insufficient details, etc.
It has an auditor section where they can track the performance of their auditors.
It contains an extensive list of all the auditors, and they can track how many applications were accepted and rejected by an auditor.
You have a customers section to browse through the entire call history and extract pertinent details relevant to each call. Here, you also have access to the whole audit trail, which will help you reconstruct and reimagine the entire interaction flow.
If you’re a bank or a financial institution, you must know the essential features of Karza Technologies’ VKYC that makes it highly relevant in today's digitized environment.
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The VKYC process is entirely digital and eliminates any paperwork. There is no necessity of endlessly standing in long serpentine queues waiting for your turn to submit heaps of documents and duly filled forms. No dillydallying and vacillating from one department to another to fulfill trivial formalities and finally wobbling to complete the KYC procedure drained in sweat and fatigue. There is not an iota of legwork. It's completely online.
VKYC system provides on-screen instructions in 11 regional languages. With this feature, we cover the length and breadth of the country, and customers face no language barriers to carry out the verification process.
VKYC application has an OCR – Optical Character Recognition feature incorporated into the system, and it's beneficial to extract crucial details from the PAN card and compare those details with the details provided at the onset of the process. It also precisely captures the image in the PAN card and matches with the image captured during the video call.
Name, Address, Face Match Scores
After comparing any inserted details with the PAN card and Aadhaar card details or comparing the image captured during Video KYC with the photo in the PAN card and Aadhaar card, based on the accuracy and exactness, and precision of the match, a match score will be allotted. If the match score is above a threshold limit, it will be highlighted in green, and if it is not matching or is below the threshold limit, it will be highlighted in red. The colour codification makes the process easy and streamlined to approve or reject the application.
Geotagging and Reverse Geotagging
VKYC system attaches geographical coordinates information in latitude and longitude to the current location of the customer where the video call is being carried out. It also converts the geographical coordinates into human-readable address or location name, facilitating address verification, as provided by the customer.
Identification of Proxy/VPN risk
Proxy or VPN is used to mask the IP address and encrypt the data sent and received, making it extremely difficult to detect the location and extract information about the user. However, some proxies/VPNs are used to maintain regular online anonymity, while there are malicious proxies/VPNs used to hide the identity of the user involved in stolen credit card fraud, creating fake accounts, sending spam, etc. Our resourceful and sly API can distinguish the harmless ones from the risky ones even with similar IP addresses and accordingly allocate them an appropriate level of risk.
Compatible across all major platforms
Customer and Agent flows are available across all major platforms such as web, android (mobile and tab support), and iOS(mobile). We provide the facility of choosing your own platform that is highly accessible and most importantly convenient to you. We have incorporated this innate flexibility so you can flawlessly work across all devices without losing any of your work, and without being perpetually stuck to your desk or any device.
Built In-call chat
We have an in-built chat application where bank agents can provide support to the customers if they face any difficulty or inconvenience during the verification process or require further explanation during any step in the customer's onboarding journey.
Whenever a customer tries to connect to an agent for Video KYC, we show them an intelligently computed wait time based on current agent availability; The customer can accordingly decide whether they want to complete their KYC right away or schedule a call for a later date/time. Our handy and seamless scheduling facility allows customers to book a slot to complete their VKYC at a convenient date and time. These scheduled calls are given preference over live calls, and we ensure that there is a reliable agent available at the allotted time who can effectively guide you through the VKYC process without you waiting even a fraction of a second.
Hence, our Video KYC makes the onboarding process the proverbial piece of cake. With smartphones proliferating in India, it has the potential to reach the remotest village in India. It can also provide banking services to people with no bank in the vicinity. Video KYC is here to spark a banking revolution, and the pandemic has just triggered that revolution.
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Disclaimer: The views expressed in this blog are those of Karza Technologies and do not reflect policies/ opinions of any entities whatsoever. The content of this blog is for educational purposes only and provides no guarantees of completeness, accuracy and usefulness of the content expressed or implied.