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In recent times, a host of progressive regulations like UPI, CKYC, and Aadhar based e-KYC have turned out to be the real saviours for the financial sector.

V-KYC or Video KYC has also contributed to battling the Covid-induced slowdown – With a majority of people limiting face-to-face contact, tools like V-KYC have given banks the much-needed impetus to tide over the uncertainties of the pandemic. For a population that is expecting the best solution to every problem at the click of a button, Video KYC is a game-changer.

A video KYC allows banks to complete customer KYC documentation digitally; something that caught steam in the aftermath of the Covid-19 pandemic with banks and financial institutions accelerating their digital transformation journeys.

What is V-KYC?

Know Your Customer or KYC is the process of authenticating the identity of the customers when they start a new relationship with a bank or financial institution. This could be done for opening a new bank account, availing loans, credit cards, or even an e-wallet. With V-KYC, the same can happen remotely through a video interaction.

All you need to do is get on a quick video call with your bank, where you need to answer a few questions and then display your original PAN card for verification. Once this process is completed, the bank agent will review some details and process your application. V-KYC can be done only if you are in India. As per regulatory guidelines, geo-tagging is used to verify the location of the applicant in order to ensure that the customer is present in India.

The entire process is customer-friendly and is aimed at offering a seamless customer experience. You either need a laptop/PC or a smartphone with a front and back camera and an internet connection. Besides this, you need to enable access to your location, microphone, and camera before starting the call and make sure the room is well lit. The bank will share a V-KYC link with you. You just have to click on that link to initiate the KYC process.

Benefits of V-KYC

With digitization at its peak, V-KYC facility is redefining customer experience. The first and foremost benefit of VYC is that it is faster, convenient, and completely contactless. The process is hassle-free and can be done anywhere, anytime.

Completing a KYC online also speeds up the entire process of application for a savings account or loan, which otherwise would take a few days. This process ensures quick access to the product or service you need. The complete process can be wrapped up in a jiffy, thereby saving precious man-hours and resources for customers as well as banks.

For banks, it also comes as a cost-effective option as they don’t need to deploy additional manpower to go door to door to complete these processes. Banks have reported an estimated reduction of about 40 percent on KYC completion costs with fewer staff and infrastructure requirements.

By using technology, many of the repetitive tasks of verification can be done digitally, thus allowing banks for better resource utilisation. It also standardises the entire process of KYC, thereby offering a better experience to the customers.

The Future

With lockdown imposed all over the world, including India, equity markets tanked as an outcome of the slowdown in the economy. But, these low levels proved to be an attractive investment opportunity for many who used this as a window to make their foray into capital markets. For first-time investors, who had to take the online route in a post-Covid world, the V-KYC process came as a real boon as it simplified the process to open investment or trading accounts with banks and other BFSIs.

With this virtual process, banks have gained immense popularity all over the world. These advancements will bring banks and banking services within reach for thousands of Indians, who live in areas where branches are not present, therefore enabling them to open savings accounts or apply for loans.

Amidst the COVID-19 pandemic, video KYC has offered a big boost to digital account opening and kept the BFSI Industry running. This facility is also relevant for the new hires in the companies, who would need to open a new salary account especially at the times when face-to-face meetings are not possible.

As the future moves to digital and financial institutions take digital transformation head-on, this is definitely a trend that’s here to stay.

The Video KYC facility offered by Standard Chartered bank enables you to complete the KYC process for a new savings account, new credit card, or personal loan by means of a simple video call from the comfort of your homes. So, when it comes to banking, #TechItEasy with Standard Chartered bank’s easy and effortless V-KYC.

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