INSUBCONTINENT EXCLUSIVE:
One of the fundamental pillars of survival is adaptability
Our resilience makes us thrive in changing environments
The current coronavirus pandemic has led to a higher degree of change in the way business transactions are done, and the new normal is
dominated by digital transformation across industries.The banking and finance industry is also witnessing a sea-change in terms of
deployment and use of technology to find substitutes to human-to-human contact in different processes
There has been an uptick in digital adoption in lending and other banking processes, however the pandemic has necessitated further
innovations.One of the basic requirements for any financial platform is to meet the KYC (Know Your Customer) regulations
In April 2018, the Reserve Bank of India (RBI) made it mandatory to link the customers' Aadhaar identification numbers to their accounts, as
All regulatory bodies mandated the need for KYC, from banking accounts to mutual funds and many others.While online savings accounts have
existed for a while, the customers had to undergo KYC verification by visiting a bank branch or having a bank representative visit their
Without completing this process, the customer would be restricted to carry out transactions only up to a certain threshold
But the lockdown and social distancing norms, imposed by the government in late March to curb the spread of COVID-19, took away these
options.However, COVID-19 has enabled a leap towards a new era
This year, the RBI decided to allow companies to onboard customers remotely via video calls, thus filling the last-mile gap in digital
adoption.The process of video KYC has been introduced and has provided accessibility of a full-power digital account by eliminating the need
for the customer to visit a bank branch
This will help customers access diversified financial services such as setting up a fixed or recurring deposit, investing in a mutual fund
or systematic investment plan, buying an insurance policy, applying for a loan or credit card, and even paying a bills -- all through
digital channels.While abiding by certain guidelines set by the RBI, the video KYC facility will now allow officials to remotely verify the
customer's identity using their Aadhaar card and PAN card
This ingenious use of technology makes it possible to digitally open an account instantly without visiting a bank branch.As a result of the
precautionary measures, the need for digital accounts has been emerging as a necessity for a large segment of people - starting from
parents, who need to pay their children's school fees, to merchants, substituting cash-on-delivery with digital payment from the customer
video verification will be beneficial in many ways for both the end-customer and the provider
There will be a decrease in the cost of services which the service provider had to bear due to large dependency on their feet-on-street
The virtual process enables better customer experience, eliminating the need of face-to-face interaction for verification, and, thus,
leading to a lesser turnaround time.The system of customer and process transformations has always been interdependent
Video KYC and digital accounts are futuristic tools to provide ease to customers - now and in the long run, hence changing the customer
preference pattern.(Sameer Shetty is Head-Digital Banking at Axis Bank)Disclaimer: The opinions expressed within this article are the
personal opinions of the author
The facts and opinions appearing in the article do not reflect the views of TheIndianSubcontinent and TheIndianSubcontinent does not assume
any responsibility or liability for the same.
