It is time to put ‘I’ (Intelligence) in the age-old KYC process

Blog - An ultimate guide to automating KYC

India is at the forefront of this era’s industrial revolutions, thanks to the digital India initiative launched in the year 2015 with an aim to empower the citizens of the country. Some key initiative under this program were DigiLocker, MyGov.in, ehospital, WiFi- Hotspots and so on. According to Economic Times, 99%  of Indian adults have an Aadhaar identity number. As per Livemint, in January 2019, 600 million transactions were carried out via Bharat Interface for Money-Unified Payment Interface (BHIMUPI). These numbers clearly show the reach and success of the digital India initiative. ‘Go Digital’ is the motto nowadays and India has leapfrogged to become a digital nation by making it an integral part of the way organizations function.

In this dynamic business environment, automation has become an integral part of businesses to get that competitive edge and to survive. Automation is a need of an hour rather than an option to keep pace with this changing business world. Various initiatives were launched to connect the common man to the banking system. Gone are the days when people had to go to the bank, now banks come to your house. How? Well, via your mobile or laptop. As per The Financial Brand, 48% of the institutions surveyed recently indicated that the entire online account opening can be done without coming into the branch at all. BFSI sector is certainly keeping pace with this digital transformation by automating various processes. For example, in recent years we have seen how processes like opening an account, transferring money, withdrawing money, depositing money, etc. have become so easy and quick. All thanks to the digitalization of banks. According to a recent study by the Economic Times, 51% of Indians use online banking channels.

In an interview with Gartner, the CEO of SBI Mrs. Arundhati Bhattacharya has stated that “Technology supported by regulatory reform has been a key to provide access to deliver these services to the unbanked. Digital business is a game changer to drive financial inclusion but needs to be supported by financial literacy efforts.” She suggested that financial literacy camps should be conducted to educate and make people aware of these services in simple terms.

KYC (Know Your Customer) is declared as a mandatory process by the RBI to make the banking processes more secure and faster. Manually doing the KYC authentication process was consuming a lot of time, creating a backlog, affecting the associated processes and the overall productivity of the companies. Any alterations in the way processes are being carried out brings some resistance along and handling this resistance in the right manner is a make or break situation for any new strategy implemented. KYC is no different. Let us look at some key issues faced while carrying out the KYC process:

According to the recent survey by Times of India, the average user verification through physical KYC costs near about Rs.100 whilst the same by automation costs Rs.15; which is a significant amount of savings when there are numerous KYC’s to be done every day. In the process of doing these quickly, mistakes happen which affects the accuracy rate which is not the case if you automate it.

The staff had to manually scan various documents received from the customers according to the compliances. These manual activities consume a lot of time and result in delay which might create a bad image in the mind of the customers. A study by Economic Times says that 37% of Indian respondents will change banks if they had a bad experience.

These hurdles gave birth to the idea of automating the KYC process with which you can create a better work environment, more engaged workforce and satisfied customers. Softbot is one such solution by V2 with an aim to develop a user-friendly and quick KYC implementation process for the organizations. Businesses can invest this saved time in other valuable tasks by letting Softbot take care of the KYC process.

Contact us for more information.

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