New Aadhar regime and KYC Conundrum of India

It was a phase that lasted a few months when telecom, lending and fintech industry celebrated the birth of digital identity for Indians – Aadhar. So did everybody else, who envisioned financial inclusion of large portion of un-banked and un-connected masses of India. With full electronic process of verification, cost of customer acquisition had dropped drastically, hence the viability of providing service far and wide.

Then came the Supreme Court judgement in Sep 2018 that Aadhar electronic verification process cannot be used to facilitate the KYC (Know your Customer) norms. Not even with voluntary consent of the individual.

However, as it happens in India, things do tend to move in the right direction albeit a bit slow. Finally on Nov 9’ 2011, telecom authority in the country has allowed telcos to adopt an alternative digital KYC process (eKYC) that does not require us to go back to the old costly process of physical document collection. Expectations are that the same digital KYC process will be allowed for lending and fintech industry as well very soon.

New eKYC process:

eKYC guidelines can be adhered to with following elements being part of a digital customer acquisition form (CAF) –

  1. Taking live picture of the candidate to embed in the CAF form
  2. Digital picture of the original document of the identity and address proof documents
  3. Printing GPS coordinates, CAF form id, date and time stamp on the picture as a water mark. If the picture is being taken at a retail outlet, retail outlet code and name as well.
  4. OTP based validation to avoid signature of the consumer on the CAF form
  5. OTP based validation for retail outlet (in case process is being done at a retail outlet) as a declaration of digital process

How to achieve this with BeatRoute:

Customer profiling has been an area of focus for BeatRoute, as a field force platform, for some time now. Here is what we do through technology for our customers –

  1. Complete end to end process of customer eKYC onboarding on a mobile app workflow to be used by a field executive or by an on-site executive at a retail outlet
  2. Robust technology for capturing and uploading of identity and address proof documents in poor or no network scenarios
  3. Configurable form fields to mimic combination of statutory and non-statutory profile data capturing required across use-cases
  4. Fraud detection technology to match ID pictures, catch picture of picture, wrong ID documents, scan of non-original documents to meet compliance and reduce cost of backend verification
  5. Cryptography to secure sensitive personal data of consumer for data in motion as well as at rest
  6. Secure APIs to transfer CAF data into other processing systems, if required

Request a demo of this process in action.

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