Video KYC - Understand how it works

Digitization has transformed the banking sector in a lot of ways and has reduced the traditional paperwork hassle wherever applicable. Today, we have the option of authenticating our identification with the help of Video KYC. AU Small Finance Bank offers Video KYC as part of its Video Banking solution that provides a branch-like experience anywhere, anytime. Once your identification is verified via Video KYC, you can open a digital savings account, open a Fixed Deposit / Recurring Deposit, or do funds transfer from the comfort of your home. Let’s get to know what it is and how it works.

What is KYC?

Know Your Customer (KYC) is an integral part of the customer onboarding process in the banking and financial sectors (BFSI). In a highly populated country like India, implementation of KYC becomes necessary to drive profitability, financial inclusion, risk mitigation and compliance. The KYC process is to authenticate the user as per the guidelines of RBI, PMLS by the Government of India, SEBI, IRDA, and other regulatory bodies. There are two ways in which you can complete KYC – online and offline. Below pointers differentiate between the online and offline KYC process.

So, whether you want to open a Fixed Deposit / Recurring Deposit account, do internal fund transfer, perform financial transactions like RTGS/NEFT, or deposit a demand draft, you can do it conveniently using AU Small Finance Bank’s Video Banking facility to start the process of Video KYC. Our Video Banking is available to non-AU Small Finance Bank customers as well. AU Small Finance Bank’s Video Banking is a virtual banking solution that provides a personalized banking experience with a human touch.

How Video KYC differs from Traditional KYC?

The traditional or the paper-based KYC requires you to visit any financial organization or third-party experts. You need to submit self-attested copies of the documents.

On the other hand, the Video KYC process is a paperless procedure. The use of technology to verify the genuineness of documents, the authenticity of individuals, and to match a document to an individual makes Video KYC a nearly error-free process. The onboarding time through Video KYC can be reduced up to 90% while also driving operational and cost-efficiency.

Benefits of Video KYC - For Consumers & Business

Below are the benefits of Video KYC for both consumers and businesses:

• Video KYC is a virtual identification process that uses machine learning, automated data extraction and facial matching technologies. It is all done in real-time.
• The verification process is quick and extremely cost-effective. It also saves entities a substantial amount of time.
• All interactions are recorded and stored for the future.
• The customer onboarding process is fast using Artificial Intelligence (AI) technology.
• For banking and finance companies, the Video KYC process slashes onboarding costs by 90%, and it has drastically reduced the turnaround time from days to a few minutes.

Video KYC In India

Video KYC is a welcome move, especially during the COVID-19 pandemic period. It has already been beneficial for the BFSI Industry, considering the onboarding costs have reduced and enabled contactless customer onboarding. For consumers, whether it is opening a digital savings account or acquiring a credit card or doing fund transfer has become easy through the Video KYC process. 

Here are a few key points on how video KYC will impact and benefit us in times to come:

• Eliminates chances of fraud and malicious activity from taking place
• It gives an assurance that investor assets are safe
• It helps to reduce paperwork
• Extremely cost-effective as against the traditional process
• Dealing with criminal activities such as money laundering
• Creates a streamlined process through automation

Video KYC Process at AU Small Finance Bank

Some of the perquisites for starting a Savings Account through Video KYC at AU Small Finance Bank are:

• Keep original PAN card and Aadhar Card within reach
• White paper with a blue or black pen for live signature
• Ample light in the background
• Stable internet connection

Video KYC – Future

AU Small Finance Bank offers Video KYC as part of its Video Banking solution, which allows you to submit KYC information and get the verification done via Video. Through Video Banking services, you get onboarded securely and within seconds using AI-based KYC validation, mobile number authentication through OTP and personalized security questions.