Category: Digital KYC

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Prevent Identity Theft by Implementing Digital KYC

Identity theft happens when someone steals your personal information like Aadhar card number, PAN details, or credit card information to make an online purchase, access your financial accounts, create a new bank account, or commit any other type of fraud.

Identity thefts are far more common than you think. According to Norton Cyber Security Insights 2021, nearly 2.7 crore Indians were affected by identity threats in 2020 – that is, 45% of adult Indian internet users. With such high levels of risk, financial institutions need to re-evaluate their current KYC processes to reduce instances of fraud while engaging with new customers. As instances of fraud will see an upward trend, it is time for financial institutions to opt for secure Digital KYC processes in place of legacy practices.

Before we understand how to reduce risk, let us know how one becomes vulnerable to identity theft.

  • Unsecure and public browsing: For the most part, accessing the internet is safe. But, unsecured websites and public Wi-fi increase the risk of data, landing into hackers’ hands.
  • Data breach: A data breach is a security incident where sensitive information is accessed without authorisation. This year, personally identifiable information of 5,00,000 Indian police personnel was hacked into and put up for sale online, which was traced to a police exam conducted in December 2019.
  • Malware activity: Malwares are malicious programs that perform several functions like stealing, altering code, hijacking, deleting sensitive data, and encrypting.
  • Phishing: In this type of attack, a fraudulent communication appears to come from a reputable source, which, when clicked on, lands data in identity thieves’ hands.
  • Physical theft: Sometimes, losing a credit card or mobile phones makes data available at ease, to thieves.
  • Card skimming: In credit card skimming, thieves use a small device to steal payment card (credit card, debit card or ATM card) information. When the card is swiped through this device, it captures all the data from the card’s magnetic strip.

Digital KYC to Address Identity Theft

KYC (‘Know Your Customer’ or ‘Know Your Client’) is a process by which institutions verify the identities of their customers to gauge their identity and credibility. Banks, insurance companies and financial institutions heavily rely on KYC before opening a new account.

Identity verification with KYC mainly addresses identity theft. Despite RBI guidelines for KYC, forged documents and financial fraud continue to be a problem. Recently, in Delhi, a group of fraudsters cheated several popular banks and utilised 22 PAN cards, 9 Aadhar cards, and 21 voter ID cards for their operation.

The current KYC processes are heavily dependent on outsourced vendors and are susceptible to both customer and employee fraud. Kwik.ID provides both Digital and Video based KYC identification to address the issues that KYC processes currently face. Our Video KYC process is used for customer identification as mandated by RBI, SEBI, IRDAI, and PFRDA. The process uses end-to-end encryption for maximum data security and prevents your risk of breach or theft with an on-premises setup.

We verify all officially valid documents (OVD) like PAN, Aadhar, Driver’s License, and Voter ID card from the Central Government Database using our Digital KYC offering. Using Optical Character Recognition, our software recognises characters in ID documents within seconds. Besides incorporating security questions to verify details, AI-enabled image processing is an integral part of our Digital KYC process.

We establish identity consistency by comparing user images on selfies, institutional photographs, and photograph on official ID. We also detect liveliness using AI with live-action commands. Both these steps together significantly minimise instances of fraudulent customers.

Get in touch with us to know more about our streamlined Digital and Video kyc process – we can customise a solution based on your requirement.

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Banking on the Unbanked

Before we delve into the subject of unbanked and underbanked, here’s a look at some statistics – Seven countries across the globe account for 50% of the world’s unbanked population, and India is second on the list. 11% of India’s population is completely unbanked, and even more are underbanked. Although there has been a decline in figures in recent times, there is no ignoring the fact that a large part of the population still needs to be catered to.

Who is an unbanked or underbanked customer?

An unbanked customer is one who doesn’t have any savings or current account with a bank, owing to which they cannot use traditional banking services either. On the other hand an underbanked customer has access to savings and current accounts, however, these are through alternative financial institutions and not banks.

There are plenty of reasons as to why someone may be unbanked. Some of these being

  • Not having enough savings
  • Having concerns about privacy and security
  • Not wanting to pay bank charges; and more.

But the primary concern, at least in India, continues to be that firstly, rural areas don’t have enough transport facilities to reach the bank. Secondly, the interiors do not have enough bandwidth to support online banking processes, even if the branch is distant.

Why you need to bank on the unbanked?

When banks don’t engage with the unbanked and underbanked, many financial institutions lose out on the opportunity to reach out to them as well, because they don’t appear on the financial map. Additionally, owing to the current digital shift, there is a growing need to reach out even to the hinterlands because digital is the future, and the only way to be all-inclusive is to reach one and all and offer a standardised payment process for all. 

Some other reasons why you should focus on the unbanked include:

  • Higher revenue for financial institutions
  • Connects you to an emerging market
  • Safeguards the interests of the lower income groups

Here’s how you can reach them:

Eliminate barriers: Many people from rural areas fear banking, offline or online, because of illiteracy or language barriers. Using technology like chatbots, translators, Neurolinguistic programming, virtual assistance, etc, you can assure your potential customers that they can bank on someone who understands their needs well and is willing to guide them thoroughly with every step of the process.

Reduce physical branches: If the underbanked find it difficult to go to banks, you bring the bank to them. With digital opportunities like Video -KYC onboarding and internet banking, customers don’t need to step out anymore to complete the banking formalities. Promise your customers that the system is completely secure with AI based features like liveliness, facematch, and two-step authentication, so they don’t have any security concerns. At Kwik.ID we noticed that these additional security features in our V-KYC tool made a huge difference while onboarding customers who were worried about their data being misused.

Offer a low-bandwidth facility: How are customers going to opt for digital banking if high data requirements won’t let them complete their procedures? Building a low-bandwidth infrastructure for your unbanked and underbanked population is imperative for noteworthy results. Let media upload sizes be at a minimum, and let your software adjust to data speeds as low as possible. Offering a data speed as low as 170 kbps, we noticed that our Video kYC onboarding call drops reduced drastically and we had an 85% success rate owing to low bandwidth and easy accessibility.

Encourage financial education: Another significant reason why the unbanked don’t invest is because they aren’t aware of banking benefits in the first place. Train your employees and agents to educate them better. They can use digital media in the form of short videos, flowcharts, images and more, to explain the onboarding and banking process, needs for savings, credit application, and many other topics that can easily be conveyed over video. Connect your customers to regional agents who are comfortable speaking the language and can understand the client better. This is necessary especially during the Video -KYC onboarding process, or any other video interaction that makes the conversation more smooth-sailing.

Banking the unbanked isn’t as tough as it looks and doing so has its advantages for both – the banks and the customers too. With the right technology, the right V-KYC tool, and the right goals, the 11% of unbanked India can soon be well-banked and serviced too.

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Addressing the Five Challenges Customers Experience during a KYC Process

KYC compliance is a double-edged sword for financial institutions. On one hand, customers expect quick onboarding with minimum checks and documentation. On the other hand, regulators penalise financial institutions for inconsistencies in identity verification and risk assessments. To bridge the gap, banks, NBFCs and fintech companies continuously focus on revamping their KYC processes to comply with the latest norms while providing customers a seamless onboarding experience.

Here we address the five common challenges customers face during the KYC process and how financial institutions can resolve those using Video KYC (V-KYC). Reach out to us to know more about how Kwik.ID can help you fast-track your KYC compliance.

Challenge 1: Geographical Constraints

The traditional KYC process required customers to submit the application form and the necessary documentation in person. This meant that customers could only opt for banks in their vicinity, based on their current geographical location.

Solution 1: Online Video KYC with Geotagging

In the V-KYC process, the entire verification procedure (including remote onboarding) is conducted online through a live video call. Instead of standing in long queues, a customer can simply schedule a call by registering on the website. Even address verification happens in minutes through geo-tagging using Google Maps.

Challenge 2: Elaborate Documentation

Traditional KYC is a tedious process fraught with endless paperwork. It usually involves lengthy application forms, photocopies of identity and address proofs, and other documents like bank statements and utility bills.

Solution 2: API-Integrated KYC Verification

APIs that aggregate primary data from various verified sources, using e-documents like OVD (Officially Valid Documents) or PAN card, can replace the need for paper-based documentation. Additionally, the use of AI-powered facial recognition tools using Video based KYC identification ensures better accuracy than manual verification.

Challenge 3: Delay in Onboarding  

Conventionally, onboarding is a laborious process. Customers in need of urgent funds often turn to other (informal) sources at higher interest rates given the delays in assessment and onboarding.

Solution 3: Real-time KYC verification

Since identification happens in real-time digital, it removes the need for physical signatures and visits from bank officials. This feature makes the onboarding process smoother, allowing customers to have quick access to financing.

Challenge 4: Dropping out of the Process 

Given the prolonged KYC process, several customers often drop out midway as they often patience (or the need for funds). Financial institutions lose out creditworthy customers too in this process.

Solution 4: Visibility and Tracking 

V-KYC helps customers complete processes faster while also providing visibility on the status of the verification. Banks can ensure customers finish the Video KYC for Banks by tracking what percentage of documentation is completed. 

Challenge 5: Cost of Compliance

Traditional KYC involves high costs due to factors like going to the bank in person, procuring several documents, etc., compromising a customer’s time and money. Financial institutions also spend significant amounts in verifying KYC, which is an additional burden to customers in the form of service charges and processing fees.

Solution 5: Internet-powered KYC verification

V-KYC’s internet-powered processes with the help of trustworthy Video KYC vendors make it accessible, affordable and convenient. It also enables considerable cost savings for the service provider, making financing more cost-effective for the customer.

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Looking into the future of Digital Business

The pandemic has changed our ways of working. “Phygital” seems to be the new normal and digital the future. Many businesses had already made the offline to online shift much before the pandemic, while the last six months have witnessed only online transactions and dealings.

Organisations have also revisited their priorities as they find new solutions to accelerate the business growth and aim for long-term success. Traditional face-to-face methods have been replaced by tools like online wallets, e-commerce business, Video KYC for banks and insurance firms, AI-led instructions and more.

Organisations will soon start building their digital platforms while utilising advanced analytics with greater intensity. For example, DBS Bank understood the need to do more for its customers and adopted a RED mantra: Respectful, Easy to deal with, and Dependable. This involved tech-driven processes because they strongly believe that making banking joyful should involve making the ‘banking’ part, invisible.

Here’s how the country is paving the path for digital business growth.

Digitising Sales and Customer Processes

Organisations have started to think about digital tools and techniques, particularly for selling the product and meeting client measure prerequisites. Companies are adopting and implementing a host of applications, digital payment methods, self-service platforms, digital documentation, onboarding and electronic signatures to ensure that internal operations, income and revenue continue to flow. Indeed, even the smallest organisations have taken to digital to keep the client inflow flawless, by embracing the most recent AI innovation and apparatuses like face recognition and biometric signatures, and they don’t appear to be returning to their conventional ways in the near future.

The finance business, including banks, NBFCs, fin-tech, insurance, and numerous others presently pick online processes to make business simpler for clients, including opening an account through video KYC. Clients presently don’t have to visit the branch to finish all the formalities and fill lengthy forms. Video KYC speeds up the cycle guaranteeing they are onboarded in only two minutes!

Digital Marketing to Customers

The manner in which organisations market their products is developing quickly. Given that industry events have shut down because of the pandemic, B2B organisations like Slack and Zendesk have embraced better approaches to connect with clients by means of their digital advertising that has created new business leads. Digital content, particularly promotions guided through online media stages should be information driven, customised and shown to the correct clients for a continued boost of sales and advertising. This can likewise help improve productivity and ROI.

Empowering Employees with the Right Tools

To ensure that representatives meet their maximum potential it is imperative for organisations to receive innovation that makes activities and cycles simpler and more effective. Representatives should be instructed about the most recent advances and prepared in the best way to manage new clients, digitally, for maximum consumer loyalty.

For example, Kwik.ID, our Video KYC tool is enabled with customer queueing facility to reduce customer repetition. The analytics dashboard helps agents manage their time more efficiently. Finally, the Neuro Linguistic Programming software ensures agents understand and guide customers better, and (instantly) resolve their issues.

Utilising the Cloud for big business applications, planning and management, workforce management, billing and many others, not only provides easier employee access to technology but also helps manage cybersecurity better as everything is housed together.

It is significant for associations to have all the documentation and client information in one spot—regardless of where the agent or employee is, information can be accessed from a distance and work needn’t stop. At Think360, we suggest dealing on-the-go, which our video KYC apparatus empowers, by storing all the information in one spot.

In the coming months, online instruments like advanced banking, e-wallets and Video KYC India can essentially profit financial backers, insurance agencies and specialists, banked and unbanked areas, non-banking entities and numerous others. While these tools support business, they additionally help fight sluggish business attributable to COVID, while guaranteeing that work moves consistently from any place across the globe.

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Choosing the Right Video KYC Vendor

With work from home becoming the new normal, businesses too have adapted to digital platforms, and everything that once happened in-person, now happens online. From reaching out to your customers, onboarding them and providing them with the best customer service. But how does one choose a Video KYC (V-KYC) tool to onboard customers instantly?

Traditionally, video-based customer identification process (V-CIP) took days, but with the best Video KYC tools, it can be done in less than 3 minutes!

Here’s what to look out for when choosing a V-KYC platform.

Security and Fraud Prevention

For financial institutions and banks, nothing matters more than protecting their data and ensuring that no fraudulent activities occur in the onboarding process. Any step in the process is a major concern—from storing video data, customer details, adhering to regulations, et al., to making sure there is no data tampering or leakage. With a V-KYC tool like Kwik.ID, which offers end-to-end encryption and AI-assisted Liveliness, Facematch and OCR, businesses are promised complete data security and customer authenticity. The Liveliness tool also captures the customer in real-time, thereby eliminating the risk of any bot breaching the platform’s security.

Demo V-KYC

How often have you been told to buy it only after you try it? When you invest in a V-KYC tool that is important for your business, you deserve nothing but the best. Make sure you are given a guided demo of the preferred V-KYC tool. Right from the ease of operation to the user dashboard, security measures, multilingual interface, low bandwidth mode, your V-KYC vendor should have everything ticked off the list that your business needs for a smooth onboarding experience. Pick the right one only when you are completely satisfied with the KYC demo. You can also register for Kwik.ID’s demo here.

Drop-off Rate

At Kwik.ID we understand how frustrating call drops can be, which is why we are strong advocates of low bandwidth compatibility. With a speed of 176 kbps, we noticed over 85% success rate with fewer call drops and more customer satisfaction with quick onboarding. When your customers are spread across the country, they could be in remote areas without enough access to high-speed internet. In such cases, you need to ensure that your V-KYC/ Video KYC vendors offer a low bandwidth mode, so that no matter where your agent or customer are located, business does not cease due to poor network.

RBI Compliance

For businesses, especially Video KYC for Banks and financial institutions, adhering to the policies and norms is an integral element. Ensure that the V-KYC tool you choose is 100% RBI compliant, ISO certified, and driven by an RE official and an auditor who are trained and authorized to work on a V-KYC platform. Kwik.ID’s V-KYC tool also offers easy deployment on RE’s cloud domain as well as its data centres.

Cost Reduction

Remember the time, effort and money spent sending field agents across areas to complete the customer verification process? Or the wait time customers spent in a queue to get documents verified?

Choosing a time-efficient V-KYC vendor will eliminate all of that. From onboarding 5 customers in an hour, you can onboard up to 20 in an hour! Not only does a good Video based KYC identification tool save time and complete the verification process in < 3 minutes, it also helps reduce travel and documentation cost by  ~80%.

V-KYC Accuracy

After making sure that your V-KYC tool matches all your requirements, you certainly need to assess its ROI via a dashboard that monitors and manages all your data and details stored. Check that your dashboard offers key metrics like drop-off rate, completion rate, call wait time and more, so you can track agent efficiency and check on how to improve your onboarding service. Other accuracy checks involve AI-assisted tools like Facematch and Liveliness, which verify customer authenticity and allow no room for error.

Choosing the right V-KYC platform is just as important as training your agents and employees to get it right. If you are investing in a tool that eases your business process, you will prefer to invest in the best. With V-KYC vendors like Kwik.ID, you are promised all of the above and swift onboarding in just 2 minutes.

Choose wisely!

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Insights into the Future of Digital Business

The pandemic has irreversibly changed the way we work. “Phygital” seems to be the current scenario and digital the future. Many businesses, however, had already shifted from offline to online processes long before the pandemic while the last six months have witnessed only online transactions and dealings.

Organisations have also revised their business priorities as they strive to find new solutions to accelerate the business pace and find long-term success. Traditional face-to-face methods have been replaced by tools like online wallets, e-commerce business, Video KYC for banks and insurance firms, AI-led instructions and more.

Organisations will soon start building their digital platforms while utilising advanced analytics with greater intensity. For example, DBS Bank understood the need to do more for its customers and adopted a RED mantra: Respectful, Easy to deal with, and Dependable. This involved tech-driven processes because they strongly believe that making banking joyful should involve making the ‘banking’ part, invisible.

Here’s how the country is paving the path for digital business growth.

Digitising Sales and Customer Processes

Businesses have begun to consider digital tools and processes, especially for selling a product and meeting customer process requirements. Companies are adopting and implementing a host of applications, digital payment methods, self-service platforms, digital documentation, onboarding and electronic signatures to ensure that internal operations, income and revenue continue to flow. Even the smallest of businesses have taken to digital to keep the customer inflow intact, by adopting the latest AI technology and tools like face recognition and biometric signatures, and they don’t seem to be going back to their traditional ways anytime soon.

The finance industry, including banks, NBFCs, fintech, insurance and many others now choose online processes to make business easier for customers, including opening an account through video KYC. Customers no longer need to visit the branch to complete all the formalities and fill out extensive forms. Video KYC speeds up the process ensuring they are onboarded in just two minutes!

Digital Marketing to Customers

The way companies market their products is also evolving rapidly. Given that industry gatherings have shut down, B2B companies like Slack and Zendesk have adopted new ways to engage customers via their digital video advertising strategy and generated new business leads. Digital content, especially ads directed via social media platforms need to be data-driven, personalised and displayed to the right customers for a continued boost of sales and marketing. This can also help improve efficiency and ROI.

Empowering Employees with the Right Tools

To ensure that employees reach their maximum potential in these times, it is imperative for companies to adopt technology that makes operations and processes easier and more efficient. Employees need to be educated about the latest technologies and trained on how to deal with new clientele, digitally, for maximum customer satisfaction.

For example, Kwik.ID, our Video KYC tool is enabled with customer queueing facility to reduce customer repetition. The analytics dashboard helps agents manage their time more efficiently. Finally, the Neuro Linguistic Programming software ensures agents understand and guide customers better, and (instantly) resolve their issues.

Using the Cloud for storage of enterprise applications, planning and management, workforce management, billing and many others, not only provides easier employee access to technology but also helps manage cybersecurity better as everything is housed together. It is also important for organisations to have all the documentation and customer data in one place—no matter where the agent or employee is, data can always be accessed remotely and work needn’t stop. At Think Analytics, we recommend working on-the-go, which our video KYC tool enables, by storing all the data in one place.

In the coming months, online tools like digital banking, e-wallets and video KYC can significantly benefit investors, insurance companies and agents, banked and unbanked sectors, non-banking entities and many others. While these tools boost business, they also help battle slow-moving business owing to the COVID crisis while ensuring that work continues seamlessly from anywhere across the globe.

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PFRDA Allows Onboarding Subscribers via Video KYC (V-CIP)

The Pension Fund Regulatory and Development Authority (PFRDA) permitted its intermediaries on October 6 to use Video based Customer Identification Process (V-CIP) for new onboarding and/or account withdrawals by National Pension System (NPS) subscribers. PFRDA’s announcement comes on the heels of IRDAI allowing life and general insurers to leverage video KYC facility, to vet customer credentials for new customer onboarding. Earlier this year, the RBI had amended the KYC norms, thereby allowing all banks and lending institutions to use V-CIP. Not to forget that most NPS distributors are regulated by the SEBI and RBI, who had already approved video based KYC. It is not surprising that  PFRDA has followed suit.

The need and benefits are many, some obvious, and some not so much.

Why was the VCIP process required?

PFRDA which regulates NPS has been constantly introducing new methods of subscriber authentication and various modes of KYC to make the overall process seamless and subscriber friendly. It has already announced a slew of measures like offline Aadhaar based onboarding, third-party reliance for KYC, OTP/ eSign based onboarding and e-exit for eNPS Subscribers.

Still, NPS subscribers were facing many challenges. For instance, they had to be present for in-person verification at the POP (Points of Physical Presence) which resulted in a delay in the process of withdrawal as well as exit. Video-Based Customer Identification Process (VCIP) will do away with the requirement of compulsory physical presence. 

VCIP allows for remote/ at-home opening of NPS account

With the COVID-19 pandemic forcing everyone into their homes, the turnaround time for onboarding processes has gone up significantly. Residential buildings have multiple rules around allowing visitors, for instance, which adds to further inconvenience and friction.

VCIP, apart from making the overall process paperless and instantaneous, also helps subscribers avail NPS services without being physically present at the POPs. The truly remote and secure nature of VCIP allows for better customer experience

Cost-effective vis-a-vis Physical KYC

Video KYC is as much about speed as it is about cost effectiveness. Processes can be designed for minimal steps (UI) and great User experience (UX). Opting for digital video identification solutions also brings down the cost compared to physical KYC. Additionally, a single agent delivers 15-20x productivity of an in-field agent. If the average cost of physical KYC of the customer would cost Rs 200, the video-based process cost will come down to 10-20 percent of the entire cost over the medium to long term.

VCIP reduces dependency on third party service providers and facilitates 2 mins onboarding process

The traditional KYC process can often take 10-15 days as there are were too many steps, entities, and checks and balances involved. On the other hand, a direct two-way audio video communication between the customer and authorized agent of the regulated entity can be established, thereby eliminating the dependency on any third party. One can complete KYC and onboarding through VCIP in a single video call, powered by intelligent queuing and experience management algorithms, as it will be a direct interaction between the customer and the representative. The humanisation of digital channels creates seamless, empathy and higher conversion rates. Well designed journeys can be executed in less than 2 minutes

Video KYC makes life easier for intermediaries as well

As per the the new guidelines, Points of Presence (PoPs) registered with PFRDA, must adhere to the V-CIP guidelines, issued by regulators for performing NPS related activities. By doing this the PFRDA intermediaries will not have any extra burden due to the introduction of the VCIP facility.

Technologists often speculate about the next wave of customer engagement. Video, with the decreasing cost of bandwidth and increasing adoption of internet based communication (such as Whatsapp Videos, Tik-Tok, Zoom, etc.), is the next big of driving customer interactions, and will increasingly be used by businesses to drive B2C interactions. The introduction of VCIP across products will also drive positive impact  in financial inclusion initiatives; bringing people who were hitherto unable to avail financial services due to geographical and access challenges, time constraints or cost factor, into the mainstream.

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A Look at How AI is Transforming the Insurance Sector

With IRDAI introducing Video KYC for insurance companies, the sector gets much relief to operate swiftly, as people turn to digital businesses and onboarding. Of course, with the introduction of this new digital tool comes the introduction of Artificial Intelligence (AI) in the Insurance space, which the industry is slowly but surely adapting to.

AI makes life simpler not only for the parent companies, but for insurance agents as well, who can now get detailed insights into customer interests, understand their insurance needs better, and onboard them in a jiffy, and do all of this, online. With the introduction of Video based KYC in insurance, we at Kwik.ID have noticed an instant willingness to adopt AI, among customers, agents, and companies. Here are some reasons that explain its growth trajectory.

The digital age welcomes the power of AI seeping into insurance

AI and the Insurance Sector

AI technologies aren’t a new term for businesses and are widely used across operations and applications including data analytics, automation, and natural language processing which helps understand the customer better. With AI, agents are assured of better insights regarding customers which thereby culminate into better customer service. Apart from that, AI eliminates the risk of fraud, encourages better productivity and even helps market and up-sell insurance products better. It is believed that by the next decade, AI will reshape the insurance sector with insights regarding a client’s idiosyncratic risks.

Customer Service

AI-powered chatbots add value to your business by providing top-notch support and services. They work without human intervention and also answer complex queries while supporting NeuroLinguistic Programming, which interprets and analyses the customer’s verbal statements and provides an accurate answer. These AI bots can be integrated not only into your website, but across social platforms and other digital interaction tools, so as to streamline your customer data and interactions with them. This helps the company achieve better customer engagement and productivity.

Fraud Detection and Prevention

Fraud detection is a knowledge-intensive activity which is applied across industries like banking and insurance. AI analyses historical data and identifies a set of patterns using Big Data and IoT (Internet of Things) to unlock hidden insights. Moreover, it supports e-signatures, and face detections so as to prevent any kind of fraud. At Kwik.ID, our cutting-edge Video KYC tools are integrated with AI-powered Liveliness and Face Recognition which ensures that the customer being dealt with is real and genuine.

KYC Process

Various regulators and industries have begun noticing the potential of V-KYC for a superior customer driven process that helps onboard them in minutes. IRDAI recently released a circular that permits Video KYC for insurance companies as well as for agents, which benefits everyone, including policy buyers, who can now buy with ease. The compliance process has been made simpler, physical contact has been minimised and business continues to move faster than ever before, owing to a quick video KYC process. It takes barely two minutes to onboard a customer now with our video KYC tools, so we can certainly vouch for it being a swift process.

Claims Management

AI technologies make information systems more adaptive and improve the interaction between humans and computer systems. Bots can review claims, verify policy details, check for fraud, and process payments, making the process much faster and efficient. Underwriters have a more accurate risk assessment, and applications are processed in just a fraction of time.

Insurance executives believe that AI will significantly transform the industry in the near future by enhancing the customer experience with automated personalized services. As customers embrace the digital age and AI adoption gains momentum across industries, insurance companies have begun to show signs of stepping up and transforming their processes with cutting edge technologies like AI.

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Kwik.ID’s Video KYC sees a 300% Surge as Banks and Financial Institutions Move to Digital Customer Onboarding

This increase in the company’s service adoption has been attributed to the digital onboarding and Video KYC processes by banks and other financial institutions like New India Cooperative Bank and RupeeRedee

August 11, 2020, National: Kwik.ID, a computer vision and AI-enabled Video KYC solution provider recently reported a 300% jump in the adoption of their services across verticals like banking, housing finance, lending, forex, fintech and wallets. The latest to join the company’s roster are New India Cooperative Bank and RupeeRedee. This surge is a result of the RBI allowing banks and other lending institutions to use Video based Customer Identification Process that has helped in easier digital onboarding of customers remotely.

Kwik.ID is a leading VCIP Digital KYC solutions provider, known for their superior technological infrastructure and an unparalleled completion rate of 85% compared to the industry standard of 40-50%. With the completion of over 50,000 KYC sessions already, Kwik.ID allows users to complete verification in 2 minutes with their swift feature of instant OCR of PAN, Aadhaar documents irrespective of low bandwidth network.

Speaking about the rapid adoption of Kwik.ID among several organizations and the growth spurt of Video KYC at large, Monish Salot, Co-founder & Chief Product Officer, Think Analytics said, “Gone are the days when digitization was just a matter of convenience. It has now become the way we all operate in our daily lives, be it investing, online deliveries or conducting meetings. Online activities which involve money is directly proportional to risk due to the increasing cybercrimes and in such cases, verifying and ID risk assessment plays a crucial role to conduct paperless documentation process successfully.”

“We are enthralled that clients are finding our robust technology infrastructure favorable in completing their KYC onboarding end-to-end. Kwik.ID’s adoption across several verticals by some of the largest organizations are a true testament to our quality of services and technical expertise. This is also indicative of the upcoming inflection point in the Video KYC segment in India” he further added.

The Video KYC platform has also been adopted by New India Co-operative Bank for KYC completion of their existing customers. Speaking about the partnership, Ketan Muni, Head – Strategy & Operations at New India Co-Operative Bank Limited said, “Video KYC has simplified the KYC journey of the customers to a great extent. Kwik.ID, designed by the Think Analytics team, is a powerful yet simple video KYC solution for customer onboarding. The AI-powered solution ensures better identification, process integrity and customer security.”

Recently, RupeeRedee- the digital platform offering short term loans – awarded the Video KYC mandate to Kwik.ID as well. Jitin Bhasin, MD – RupeeRedee said “Covid-19 pandemic is likely to have a far-reaching impact on the way financial services are delivered and consumed. As a digital lender with a stated objective of leveraging technology across the supply chain, we decided to accelerate our product development roadmap to introduce the much-needed Video KYC process to serve our customers in a safe, efficient and contactless manner. We are now able to offer larger ticket size loans for longer tenures basis this new Customer Due Diligence Process.”

KwiK.ID is an RBI compliant AI-based Video KYC solution by Think Analytics. This AI-driven SaaS company ensures a streamlined process wherein verification goes under multiple stages such as geo-tagging and time-stamped for concurrent audit backed by RE’s domain and infrastructure.

Early this year, the Reserve Bank of India amended the Know Your Customer (KYC) rules and introduced the Video KYC option to onboard customers.

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Five Lessons the Insurance Industry Can Learn from Banks about Video KYC

The IRDAI’s recent decision to allow insurance companies to leverage vKYC (video KYC) technology marks an inflection point for the industry. Insurance companies now have the opportunity to transform their KYC process and potentially grow the number of, the speed with, and the efficiency for the customers they onboard, even in the middle of this pandemic. A recent PwC report estimates that the pandemic has resulted in a 30 percent decline in business for key insurance players.

The banking industry has been an early adopter of the new Video based KYC identification technology, with RBI approving V-CIP processes back in January 2020, and can provide some templates for the Insurers to understand the big opportunities of ‘new’ customer experiences, as well as the potential hurdles that wait ahead. While there are many more, let’s take a look at the top five lessons the insurance industry can learn about vKYC from the banking sector.

Guiding user journeys: the key to VCIP success

Users want a simple, quick, and relatively pain-free experience. All the time. This requires building a robust back-end to limit bottlenecks that could affect performance, as well as implementing a user-friendly, mobile-forward interface that users won’t have to wrestle with. Among banks, there’s a vast disparity in vKYC completion rates, from 40-45 percent at the lower end of the spectrum, all the way up to 85 percent with solutions from some key industry players. Successful players design user journeys with users at the centre, and not technology. Consistent, well-guided, and convenient user journeys lie at the heart of successful virtual customer identification.

Automated queue management: an overlooked customer experience factor

When it comes to a high traffic function like Video KYC verification, the insurance industry can benefit immensely from automated queue management. Given the agent-interaction (manual) layer – intelligent queuing is a necessity for vKYC. AI-enabled and automated queue management can substantially reduce the time involved in setting up, sequencing, and following through on individual KYC applications, eventually leading to a higher completion volume per day. Automated queue management can deliver a much more productive vKYC completion rate, thanks to lower processing time and a more responsive process. Practically, a well automated vKYC queue can deliver 10-15x more productivity for each agent, by cutting down the friction in user switching (imagine traveling from one customer’s residence to another’s).

Concurrent auditing and automation

Concurrent auditing is a security and compliance requirement baked into both the RBI’s and IRDAI’s decisions in favour of vKYC. Conventional concurrent audits are limited, sampled and error-prone. Automated concurrent auditing, on the other hand, can be expanded to full audit at a fraction of time, cost and resources. Automated concurrent auditing technology, with augmented intelligence (fuzzy logic, document checks, etc.), that tracks every transaction, flags problem transactions as they occur. Automated concurrent auditing can ensure 100% visibility and transparency, as well as the reduction in overall compliance costs.

Managing innovation and adoption with insight

Understanding the impact of vKYC in terms of time, effort, and money saved, is vital to its greater adoption. Decision-makers benefit immensely from effective insights dashboards, helping them identify trends in completion rates, flag issues, and view quantitative insights into the impact of Video KYC India, both for the customer onboarding experience and the overall bottom line. Quite often, the intelligence from a system change is deferred for later. For best-in-class vKYC processes, they’ve been a part of the product strategy. Often the insight layer is critical for agile innovation to deliver the highest possible value in the short term.

Freeing the user and expanding (market) possibilities 

A vital advantage of vKYC on a whole — and something insurers stand to benefit from in this time of extreme isolation —users can complete onboarding from anywhere (as long as they’re within India, according to geotagging). It allows businesses to identify “similar” markets where they can expand to, onboard customers (with confidence), and unlock the potential that an innovation like vKYC can bring to the table. Unlike the past, when we are competing with digital-first insurtech innovators, the cycle time to test these decisions needs to be high and our offerings need to be competitive (across both, product and customer experience). Considering the 80-85% journey success rates that Video KYC solution providers like Kwik.ID is delivering, even in low bandwidth locations – there is an opportunity to open new markets in rapid succession and create experiments that unlock long-term value.

Conclusion

There is an all-pervasive uncertainty, and steps like vKYC are great regulatory nods to keep businesses moving forward without inherently exposing people (or the business itself) to greater risks. Insurance penetration in India is low, and there is an opportunity for the best in class players to use this ongoing crisis as an opportunity and transform the customer acquisition landscape for the industry at large. How well and with what urgency the industry players jump on this rocket-ship will likely determine the pace at which the sector recovers to its pre-COVID growth trajectory.