How Technology Is Paving Way For Remote Onboarding In A Contactless World

Headquartered in Bangalore, Crediwatch is a data analytics platform that deploys scalable deep learning tools across disparate digital footprints left by private companies ( big and small) to provide real time insights on customers, vendors and competitors. Founded in 2016, the company has so far raised $4.8 million from Abstract Ventures and Artis Ventures.

The Indian fintech software market is forecasted to touch $2.4 billion by 2020 from the current $1.2 billion, as per a report by Nasscom. With the changing macroeconomic determinants due to the outbreak of COVID-19, the FinTech Software market is presented with greater opportunities to address the needs of running a business in a contactless world. In this context, one of the core areas of disruption for financial institutions is digitally onboarding customers. Historically on-boarding has been a herculean task that involves gathering documents of the customers, conducting in-person verifications to comply with KYC regulations,etc. This means a good 4-6 weeks of effort to onboard a customer, resulting in poor user experience.

Why contactless verification is need of the hour for the modern FinTech landscape
As per RBI’s new guidelines, agents hired by banks and Business Correspondents (BCs) can either carry out eKYC of borrowers or physically carry a biometric reader to a customer’s residence for identity verification. Equipping lakhs of Direct Selling Agents with biometric readers can prove to be both time-consuming and cost-intensive. But, this is just the tip of the iceberg when it comes to the challenges plaguing the financial institutions and enterprises who want to onboard suppliers/vendors. The real problem arises in tier-II and tier-II cities, where branches are far, and a few, and the workforce required to cover the region is massive. This means most private sector banks and companies in the BSFI sector might choose to cut their losses by not servicing certain areas to keep the additional costs at bay.

On the other hand,digitising customer onboarding processes enables lenders to future proof their operations and remain competitive in a crowded market. Adopting a transparent and customer-centric digital onboarding process allow banks to remotely authenticate the identity of their customers, thus eliminating the cumbersome process of in-person verification. This provides an enhanced user experience that boosts customer satisfaction and ensures that customers do not switch to another bank. Also, New-to-Banking and New-to-Credit customers would need credit on an urgent basis in today’s COVID-19 situation and anonline KYC journey can support these new customers immediately.

• Streamlining KYC onboarding improves efficiency and lowers friction cost, and helping to speed up the process, meaning banks can successfully onboard more customers in a shorter time.

In the grand scheme of things, there should be undeniable clarity in building an enabling environment for businesses to become Atmanirbhar. The ethical thrust will help shape the future for a digital and well-connected India; empowering enterprises and financial institutions to remain competitive on the global stage. It is time we transition from our traditional ways of KYC verification as they are increasingly becoming irrelevant in a COVID world.

AI technologies play a crucial role in building an Atmanirbhar Bharat where financial institutions and enterprises can conduct business efficiently without in-person dependencies. Video Identification, Advanced and Qualified Electronic Signature, and Facial Biometric Authentication services are transforming how companies and customers interact.

With RBI amending its KYC norms allowing banks and other lending institutions to use video-based Customer Identification Process (V-CIP), remote onboarding is at an all-time high now. A secured Video KYC platform enables real-time two-way communication to provide digital KYC verification on the go. Using AI-driven face match and document verification algorithms, VideoKYC tool accelerates the customer on-boarding process. Users are authenticated by extracting details from Government-issued ID cards, and matching photos on ID with live video, while ensuring end-to-end encrypted audio-visual interaction.
Another critical aspect of the onboarding process is going digital with paperless signatures. E-sign gives you the flexibility to sign documents anywhere, anytime. E-signs enable your workflows to operate with remote and digital processes without hurting your business. Digital signatures across modes - including Aadhaar based e-sign - are now available.

These solutions also remove any cognitive bias in the process and help to mitigate the possibility of identity frauds and malpractices.

Kickstart your Digital onboarding journey:
Today there are end-to-end digital onboarding solutions available in the market that help you onboard customers, suppliers, and vendors quickly. Right from capturing input data on the customer, establishing identity, to portfolio management with alerts and reports that help banks with timely information, these AI/ML-enabled platforms can take care of all aspects of onboarding and beyond. Financial institutions can now identify prospective borrowers while weeding NPAs, which leads to saving costs and reduce the loan processing time. Here are some of the key things to keep in mind for a successful transition.

• Identify your current stumbling blocks in your onboarding process that can be optimized digitally and automated.
• It is also important to ensure that your customers have visibility of the new process so that the transition is smooth for them.
• Instead of a modular approach, build a data-driven approach to onboarding where along with KYC, one can get initial Risk Metrics on the business being onboarded seamlessly.
• Adopt a device and platform agnostic approach for the best customer experience.

Transparency, reliability, and accessibility: Factors driving the growth of India’s Fintech
India’s FinTech market is ready for exponential growth in the current times by adopting contactless identification/verification and leaves no room for the rising cases of identity fraud. However, the advantages of tech-based verification go beyond deterring fraud. It also plays a significant role in helping traditional banks to digitize their services, reduce customer onboarding costs, and most importantly offer a smooth onboarding experience for customers.