Video KYC: How technology makes life easier for investors

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Published: February 26, 2020 5:11:57 PM

There are several ways video can help in providing a remote and paperless onboarding process that minimises the cost and eliminates traditional bureaucracy.

Know Your Customer, KYC, video KYC, eKYC, Reserve Bank of India, RBI, KYC with banks, EnableX, CPaaS technology, investmentsInvesting in an instrument in India is easier than completing the formalities like Know Your Customer (KYC) to become eligible to invest.

Investing in an instrument in India is easier than completing the formalities like Know Your Customer (KYC) to become eligible for investment despite having money to invest. For KYC purpose, prospective investors need to fill complex forms and need to visit bank branches and stand in queues to submit the form, along with supportive documents.

For long, many businesses have tried to make the process simpler and shorter for customers, although it still requires the customer to either walk to the bank or have an agent from the bank visit their home to complete the process.

However, the requirement for customers to visit a bank to complete their verification and KYC processes will soon become a things of the past.

Recently, the Reserve Bank of India (RBI) announced the latest norms allowing financial institutions to conduct KYC over video. This can prove to be a huge step that will revolutionise the financial services sector in India.

There are several ways video can help in providing a remote and paperless onboarding process that minimises the cost and eliminates traditional bureaucracy.

Businesses such as banks can enjoy video-enabled eKYC without reinventing the wheels. However, for banks, where security is their top priority, many are turning to only carrier-grade CPaaS players with multiple cloud deployment options.

By partnering with a Cloud Communication Platform player like EnableX, they can easily embed video calls, recording and other collaborative functionalities into their existing KYC workflow. Businesses don’t need to invest in costly proprietary hardware that lacks adaptability and scalability.

Engineered and designed with security in mind, EnableX offers end-to-end encryption and runs on High Availability network.

Unlike other CPaaS players, EnableX offers multiple deployment models – public, private and hybrid cloud – to meet security and compliance needs. Banks can run critical or sensitive information on their data center and leverage EnableX Public Cloud for the rest of the communication capabilities.

This provides them with more control, scalability, and security without complex network and infrastructure.

With the help of EnableX Application Programming Interfaces (APIs), businesses can configure and integrate multiparty video calls directly into applications and workflow without building any backend infrastructure.

This capability is a cost-effective and speedy way to undertake the KYC process. It enables organisations to ensure better customer experience while still maintaining the process-adherence.

In addition, the video and recording are encrypted, providing additional security to customers’ account, data and information.

The on-demand and digital economy brings a lot of opportunities but also entails challenges for businesses in all verticals as they need to rethink on how to differentiate their services and engage their customers with personalised, fast and contextual experience.

Many enterprises, including those in the financial industry, are now turning to CPaaS technology to transform their customer-facing business processes and applications quickly and at low cost.

“In India, we are seeing huge demand from the financial industry. Banks and Insurance companies are looking at CPaaS to provide secure, convenient and high-touch services with real-time communication. From a video-enabled banking kiosk to remote engagement between high net-worth customers and Relationship Manager to enriching their banking apps with in-app communications, financial institutions are engaging CPaaS players to improve their communication experiences,” said Pankaj Gupta, CEO & Founder, EnableX.

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