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 a large portion of unbanked and un-connected masses of India. With the full electronic process of verification, the cost of customer acquisition had dropped drastically, hence the viability of providing service far and wide. Then came the Supreme Court judgment in Sep 2018 that using the Aadhar electronic verification process to facilitate the KYC (Know Your Customer) norms is not permissible. Not even with the 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 the physical document collection. Expectations are that the same digital KYC process or KYC software will be allowed for the lending and fintech industry as well very soon.
New eKYC process
Adherence of eKYC guidelines with the following elements being part of a digital customer acquisition form (CAF) as well as KYC software–
- Taking a live picture of the candidate to embed in the CAF form
- Digital picture of the original document of the identity and address proof documents
- Printing GPS coordinates, CAF form id, date and time stamp on the picture as a watermark. If the picture is being taken at a retail outlet, retail outlet code and name as well.
- OTP based validation to avoid the signature of the consumer on the CAF form
- OTP based validation for the retail outlet (in case retail outlet is where the process takes place) as a declaration of digital process
How to achieve this with BeatRoute – Smart KYC Software
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 –
- Complete end to end process of customer eKYC onboarding on a mobile app. By using this workflow a field executive or on-site executive at a retail outlet will complete the process digitally.
- Robust technology for capturing and uploading of identity and address proof documents in poor or no network scenarios
- Configurable form fields to mimic a combination of statutory and non-statutory profile data capturing required across use-cases
- Fraud detection technology to match ID pictures, catch picture of a picture, wrong ID documents, the scan of non-original documents. This helps to meet compliance and reduce the cost of backend verification
- Cryptography to secure sensitive personal data of consumer for data in motion as well as at rest
- Secure APIs to transfer CAF data into other processing systems if required
Request a demo of this process in action here.