What is Video-KYC and How to Complete the Process to Open a Savings Account

KYC (Know Your Customer) is a mandatory norm that every bank and financial institution follows where they gather your details when you open an account with them.

The banks and financial institutions do this to confirm your identity. This helps them to avoid cases of fraud or identity theft, and to meet set standards and requirements. 

With the advancement in digital banking, the banks have adopted the e-KYC procedure.

In e-KYC, you can give your details in electronic form. This helps in achieving the goal of fast on boarding and being compliant to the set regulations. 

Furthermore, the system was advanced with the introduction of video KYC (v-KYC).

What is video KYC?

Banks and financial companies have adopted the video KYC for verifying the identity of their customers. This video KYC is an online process that helps the banks and finance companies to confirm your identity through a video call. 

It eliminates the conventional face-to-face KYC, thus making the process of customer onboarding easier. 

This is very helpful for those who reside in rural areas or those who aren’t able to visit the branch for opening a savings account.

How does Video KYC work?

During a video KYC session, a bank representative asks you to display their identification documents, such as a PAN and Aadhaar card. The process also involves collecting your specimen signature digitally. 

Facial recognition and liveness detection are the advanced technologies used for Video-based Customer Identification Process (V-CIP). They ensure that the person is physically present and not using fake identities.

Advantages of Video KYC in Financial Sector

Generally, video KYC helps the banking sector to collect your identity information and verify it without requiring you to be physically present. Apart from that, there are countless advantages of using video KYC in financial institutions and banks.

Some of these advantages include:

• With the provision of the video KYC, individuals with disabilities can easily get their bank accounts without going through the trouble of physically appearing in the banks.
• The process is done in real-time, so the verification officer can clarify the doubts regarding the identity of the individuals.
• Moreover, the modern technology in video KYC helps in reducing the processing time for the verification of the customer’s details.
• Additionally, the video KYC employs advanced technologies that use encryption and authentication that ensure security and privacy of customer data.
• With Video KYC, the operational costs for the verification processes are reduced, making it a cost-efficient process.
• Furthermore, the entire process of customer onboarding in banking companies has been smoothed out with the provision of video KYC.

Things you need for video KYC 

Here are the things you would need to initiate the conversation between you and the bank representative while opening a digital or zero balance savings account:

• You need a smartphone, tablet or laptop with a stable internet connection. 
• For opening your account, you would also need original KYC documents, i.e., PAN and Aadhaar card.
• You need to show proof of presence in India. The bank needs some proof of your Indian citizenship.
• For your signature, you can keep a blank A-4 size white paper and pen (blue/black) handy. 
• You would need a well lit location as well.

How video KYC is done to open a savings account

1. Open the bank site and fill out the application form 

Visit the official website or mobile app of the bank where you wish to open a savings account. Open the online application form and enter all your personal details.

2. Give consent for video KYC and schedule a call 

Then, provide your consent for video KYC so that the bank can proceed with the video verification process. The automated machine will either connect you with the available agent immediately or schedule a time for the video call.

3. Prepare for the call 

Ensure that your device has a working camera, microphone and stable internet connection. Also, keep your original Aadhaar and PAN card ready for the video session.

4. Verification during the call 

During the call, the bank representative will ask you to display your identification documents and take a live photograph. They may also ask some basic verification questions.

5. Digital signature 

Banks may ask you to provide a digital signature on a blank sheet of paper during the call.

After you complete the call, the bank will review your details and notify you of the account activation. They will inform you about this activation through either SMS or email.

Can your video KYC be rejected?

Yes, your video KYC can be rejected if you are having a low video quality or facing interrupted connection, verification failure, etc. However, there is nothing to worry, you can always re-apply and try again.

Benefits of Video KYC

• Video KYC significantly reduces the time required for you to open a bank account. 
• You can complete Video KYC remotely from any location without visiting a branch. 
• Video KYC allows even those individuals in rural or remote areas to access financial services swiftly. 
• It eliminates the need for physical documents. 
• With liveness detection and AI tools, the bank and financial companies have reduced the risk of identity fraud. 
• Video KYC enables quicker account activation by providing immediate verification.

Conclusion

Banking has become so much easier with the introduction of the video KYC technological tool. Moreover, this technology has various advantages and benefits for both the customers and the banking sector.

In case you face any technical issues while doing Video KYC, you must immediately contact the customer support team of your bank.

Before you open an account, you should choose a bank that offers prompt and dedicated help. So, keep this in mind when selecting an institution to open a savings account.