5 big Indian companies that successfully deployed Video KYC solutions
By Edil Corneille
The population of India is so vast, that it increasingly demands innovation in improved financial technology services. Financial institutions just cannot ignore these demands or else risk losing out on customers to the competition. This has forced banks to keep up with the trends in banking even in times where the Coronavirus (COVID-19) pandemic has made social distancing a norm in many countries. In fact, it can be argued that the crisis has acted as a catalyst for the increased rollout of digital services by institutions.
In the current times where individuals are wary of visiting bank branches for fear of contracting the virus, a challenge to onboard new customers arises. The Reserve Bank of India (RBI), which is the country’s central bank, approved Video KYC in January 2020, thereby allowing regulated entities such as banks to onboard customers using a live video-based interface created in compliance with the RBI’s KYC Master Direction. Financial institutions have deployed KYC solutions that make the process of onboarding more convenient without the need for customers to leave their home premises. Below is a list of 5 big Indian companies that have deployed the Video KYC solutions this year.
Kotak Mahindra Bank (Kotak) announced the introduction of the Video KYC to open a full-fledged Kotak 811 savings account – said to be a first in Indian banking. This initiative, presently being launched on a pilot basis for savings accounts, is in alignment with Kotak’s digital-first strategy and is a start-to-end fully integrated, zero-contact, completely digital and paperless account opening in addition to a full KYC journey. The Video KYC process to onboard new customers will be extended to other products in a phased manner by the bank.
Gurgaon-based SBI Card launched the video know-your-customer (VKYC) feature which will enable customers to have a zero contact and a hassle-free onboarding process. According to media reports, SBI Card, in a press release stated, “VKYC process uses techniques such as facial recognition, Dynamic Verification code, AI enabled OCR, Live Photo Capture facial recognition, OCR, geotagging etc, as mandated by RBI guidelines, making it more safe and secure than physical KYC process.”
ICICI Bank, the Indian multinational banking and financial services company, announced today the launch of its ‘Video KYC’ facility. Retail customers of the bank can now complete the ‘Know Your Customer’ (KYC) process through a video interaction. This is significant especially in the current times of COVID-19 where social distancing is imperative and visits to a bank’s branch are risky. The Mumbai-based bank has ramped up its digital efforts in wake of the pandemic situation, so as to make it convenient for customers to avail of the products and services offered by the bank.
Mumbai-based YES BANK launched a full-service digital Savings Account where along with the account launch, the Indian public bank has introduced a paperless video KYC feature where consumers can open the account digitally through e-KYC and get a virtual debit card. The significance of the e-KYC is that there is no requirement to visit the branch of a bank to open an account. The ‘zero contact’ feature verifies the information of the customer through video.
In June, HyperVerge announced the release of Video KYC solution with Capital Float, according to media reports. The solution allows a customer to remotely authenticate KYC verification with Capital Float which does not require the customer to visit the branch premises. The procedure is said to take 2 to 5 minutes and eliminates the tedious traditional verification processes for the borrower. The solution rests on Capital Float’s domain as per the regulation and supports all mandatory requirements. AI engines are used to augment the process.
IBSi Daily News Analysis
December 01, 2023
UAE consumers turn to banks for advice on sustainable financeRead More
IBSi FinTech Journal
- Most trusted FinTech journal since 1991
- Digital monthly issue
- 60+ pages of research, analysis, interviews, opinions, and rankings
- Global coverage
Other Related News
December 01, 2023