KYC in the Times of Coronavirus
Date Published
KYC has seen a few digitization ups and downs over the years. The Coronavirus pandemic and the resulting lockdown has rushed in few new trends in KYC. Here’s a quick snapshot.
Just a few years ago Know Your Customer (KYC) used to be an on-ground process with physical documentation.The process has seen a few digitization ups and downs over the years. Aadhaar eKYC, when it was introduced. Aadhaar eKYC, when it was taken away. Digital KYC without clarity on its legality. Finally, Video KYC that came into being at the start of the year.The Coronavirus pandemic and the resulting lockdown has rushed in few new trends in KYC. Here’s a quick snapshot.
- eKYC no mo’: Well, Banks and Telcos were the lucky few who could still use the super-efficient Aadhaar eKYC with Biometric authentication. But the world has now become one where people aren’t too excited about putting their finger on a glass surface that has been touched by an unknown number of unknown people. Suddenly, these industries are exploring other digital and video ways of completing this important task.
- Video KYC is in: For obvious reasons in an era when the roads are empty and the homes full.
- Digital Address Checks are emerging: Address verifications aren’t included in the list of Essential Services. But this requires a field executive making a physical visit. Or, does it? Address verifications can be done digitally, with better accuracy and reliability that conventional physical methods. (For more on that, you’ll have to get in touch with the lady mentioned below 😉
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Just two operational segments in banking contribute to a whopping 95% of all banking frauds. That’s right — Advances and Cards/Internet banking — together account for 95% of all banking frauds. All other operational segments like forex, deposits, cash, cheques, and clearing accounts are tiny problems, in comparison, accounting for less than a percent of total banking frauds.
It had been raining for three straight days in Shillong, and Uday Imtisong was making his third trip between the bank and his house since that morning. Wading through knee-deep water, he wondered if his loan application would be approved anytime soon so that he could add a new wing to his popular gymnasium. He worried about his woefully inadequate credit history and his inability to provide a land bank as collateral for his loan – a common expectation from the lending officer at the bank.
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