Indians have seamlessly transitioned to the online medium for various processes, and loan acquisition is no exception. The advent of digital banking and other online financial services has positively impacted urban and rural populations.
The idea of physically going to the bank or the office of a non-banking financial company (NBFC) to deposit cash or obtain a loan is on the way to becoming obsolete with the digital ecosystem supporting people to conduct transactions and complete all the necessary processes from the comfort of their homes.
Identity verification was perhaps the only process that wasn't deemed as possible through digital mediums till recently; however, the emergence and legitimization of video KYC has changed that. This article gives you a comprehensive insight into what video KYC is, the many advantages it offers, and how it puts forward a secure solution to expedite your loan acquisition process.
Introduced by the Reserve bank of India (RBI) in 2002, know your customers (KYC) was launched as a valuable tool for financial institutions to verify the identity of their customers. As a one-time process, it was meant to alleviate money laundering and other forms of illegal activities.
Video KYC, which was launched in 2020, is a video-based customer identification process (V-CIP) that authenticates the user's identity in real-time. It requires you to upload a live video that is either recorded using the front-facing camera of your mobile phone or the webcam of your laptop or desktop computer. The video is submitted along with digital copies of your Aadhaar and PAN card.
As a completely digital process, video KYC presents a variety of benefits, including:
The entire verification process can be completed in a matter of minutes and does not require you to visit the bank branch or lender’s office physically.
Being a completely digital process, video KYC is an environment-friendly solution that also saves the cost of paper.
No matter where you are or what device you own, as long as there is a working camera, the process can be executed seamlessly due to its ease and compatibility.
Financial bodies can save customer on-boarding costs considerably, the benefits of which can then be passed on to the customer.
With video KYC, the entire loan application process can be completed digitally, enhancing the overall customer experience.
While technology has made life convenient, it has also raised questions in terms of data security. Banking and loan processes require submitting a lot of sensitive information, the exposure of which can be concerning for business owners.
Video verification makes use of artificial intelligence and machine learning tools to authenticate users. While the technology is accurate and completely secure, there are a few steps that you need to be aware of to keep your data safe at your end:
In terms of monitoring, the RBI has permitted NBFCs, banks, and other financial bodies to leverage video verification. The RBI has also presented a set of guidelines that need to be religiously followed by all financial institutions.
We hope this article was able to address your video KYC related queries in detail. If you're looking for a quick way to acquire a loan for your business, you can connect with our team at Kinara Capital. We have a fully digital application process including video KYC, that ensures loan disbursement within 24 hours. Our doorstep customer service caters to over 4,500 pin codes and offers exceptional support in your regional language.
So, acquire a collateral-free loan with Kinara Capital and witness the sustainable growth of your enterprise.
