The digital KYC or eKYC’s full form is to Electronically Know Your Customer. While the conventional KYC process takes time, eKYC verification is instant. It is why a majority of companies are using digital KYC to onboard customers and much more.
What is KYC? If you wanted to know more about the eKYC process, here is a post to go through! eKYC is when the authentication of a customer by diverse companies is done electronically.
Customers these days don’t want to wait to be onboarded by companies. If there is an extra waiting to add them into the fold, they have the option to try other options.
It is the world of competition, and organizations can’t keep their customers waiting just for verification purposes.
A company offering a quick verification may have the edge over others. It is where the eKYC comes into the picture.
When the identity and address of a potential subscriber are checked digitally, it is called eKYC.
Nowadays, the eKYC process is conducted using Aadhaar Card oriented verification in India.
KYC is completed to ensure that the services of a company are being used only for legal purposes and not for laundering like activities.
It is vital for companies to have only legally abiding customers.
How eKYC verification is online is done?
It is easier to conduct the eKYC process online. It is done using Aadhaar based authentication.
A One-Time Password (OTP) is sent to a user’s Aadhaar registered mobile number. This OTP is then punched on the UIADAI’s platform, which is encrypted on a company’s website.
Once a successful OTP is sent, then the eKYC verification of a customer is completed.
It is fast, on-the-go and lets a service providing organization onboard a new customer super quick.
What are the benefits of eKYC verification online?
In India, eKYC is being done using Aadhaar details. Let’s check out the advantages of the eKYC process:
- Paperless
Opening a bank account to filing a loan form needs the customer to spend a lot of time. It is in detailing his details, including the attesting of different documents. It is done to scrutinize their identity and address. It is where Aadhaar eKYC helps a customer keep away from such time-taking affairs. eKYC via Aadhaar lets a service provider quickly if a customer is worthy of being counted as valid or not.
2. Cost-effective
When KYC is done, it involves a lot of paper, and it is eliminated via Aadhaar eKYC. The physical KYC involves a lot of manpower, inventory and coordination between departments to authenticate a customer’s details. It also leads to investment in such aspects to conduct KYC. On the other hand, the KYC process is instant and saves a lot of investment on the part of a company to do it.
3. Keeps away frauds
When a request to conduct eKYC of a customer is made via UIDAI, it provides an issue proof digital document of a user. In turn, it eliminates all chances of frauds. Also, an OTP is sent only to a legal person having his mobile number linked with UIDAI; there are no chances of being misused.
The evolution of Aadhaar based eKYC has been a game-changer in India when it comes to knowing the details of a customer. It helps a company onboard customer within no time and beat competition from other organizations. A company still using the traditional KYC process is bound to lack in adding new customers to its fold.
