Digital KYC or Electronic KYC (eKYC) is an instant ‘Know Your Customer’ verification process. Most companies today prefer this method for customer onboarding.
But what is KYC? It is a verification process that lets companies assess whether their customers are genuine and following legal practices. When this authentication is done electronically, it is called eKYC. In today’s fast digital world, companies can’t afford to keep customers waiting for verification and onboarding. This is where the eKYC process proves to be useful, giving organizations an edge over the competition. How Digital KYC Is Done? When companies go for e KYC verification online, it is done using Aadhar-based authentication. Customers are sent a one-time password on their number linked with Aadhar and the OTP is entered on the portal to complete the verification. It is a super fast process that helps organizations make their customer onboarding quick and hassle-free. Benefits of Digital KYC Cost-Effective When KYC verification is done, it takes a lot of paper, effort, and coordination to authenticate a customer which is eliminated with digital KYC. eKYC is an instant process that saves a lot of money and investment. Paperless Filling forms to open a bank account consumes time. Banks ask for various documents to verify identity and address. This is where an eKYC based on Aadhaar helps reduce such time consumption. It lets banks quickly assess whether the customer is legit or not. Security Whenever eKYC procedure is followed, the company gets digital identity proof of the customer, eliminating any chance of fraud. Digital KYC portal sends an SMS to a genuine mobile number linked with Aadhaar, so there is no chance of any misuse. The introduction of digital KYC has proved to be a game-changer in India when it comes to verifying customers. eKYC process helps banks onboard their customers quickly and beat the competition with the newest technology implementation.
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AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |