The industry is realizing that Digital KYC solutions that combine realtime checks, tampering detection, face recognition and face liveness technologies provide the same level of time and cost efficiencies as Aadhaar eKYC.
The Reserve Bank of India has imposed a fine of Rs 1 Crore on HDFC Bank for not reporting fraud and non-compliance with other directions.
The RBI declared that “the fine pertains to submission of forged Bill of Entries by certain importers to HDFC Bank for remittance of foreign currency”.
It’s becoming increasingly clear that regulators are getting strict on KYC and AML compliance. Just in the month of January 2019, Citibank, Bajaj Finance, and Bank of Maharashtra were fined in excess of Rs 1 Crore each for non-compliance.
The industry, though, is reeling from the pressures of this tightrope walk on the KYC front.
On one hand, there’s the regulators’ whip. On the other, there’s the extreme pressure on time and cost involved in KYC, especially after the Supreme Court ban on Aadhaar eKYC in September 2018.
Digital KYC is as efficient as Aadhaar eKYC
The financial services industry is realizing that Digital KYC solutions that combine realtime checks, tampering detection, face recognition and face liveness technologies provide the same level of time and cost efficiencies as Aadhaar eKYC.
Digital KYC accepts documents in digital formats, extracts the relevant data, checks the images for forgery, verifies credentials of the ID card, and does face comparison to ensure that the ID card belongs to the customer. All in 5 seconds.
Our clients are already enjoying these benefits while staying safe from regulators’ fines.
We believe that Video KYC, once it has complete approval of regulators, will become the industry norm for KYC.
Read: IDfy’s Video KYC reduces KYC cost by 90%: Economic Times
Our pilot runs of Video KYC with select clients are proving this to be the most effective, efficient, and safe way to onboard remote customers. One can capture digital documents, verify them, authenticate the customer, and confirm their physical presence during the transaction over a 10 second video call. Further, this can be done without the need of a back-end staff or agents.
Video KYC has the potential to not just alleviate current KYC problems, but also help the industry tap into a much larger market. Today, large parts of India remain unserviceable due to the inability to conduct KYC in remote locations. With India’s wide cellphone and internet coverage, this will be a thing of the past once Video KYC is adopted by the industry.
IDfy provide Digital KYC solutions including Video KYC and Image-based KYC for fintechs, NBFCs, Banks, Telcos, and Sharing Economy companies.
For more information or to schedule a demo, please write to email@example.com