{"id":2728,"date":"2020-06-27T12:35:53","date_gmt":"2020-06-27T12:35:53","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=2728"},"modified":"2020-06-27T12:35:53","modified_gmt":"2020-06-27T12:35:53","slug":"banks-roll-out-video-kyc-facilities-for-customer-onboarding-amidst-covid-19-pandemic-bfsi-news-et-bfsi","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=2728","title":{"rendered":"Banks roll out Video KYC facilities for customer onboarding amidst COVID-19 pandemic, BFSI News, ET BFSI"},"content":{"rendered":"

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Numerous Indian Banks are now offering potential customers the option of filling in mandatory Know Your Customer (KYC<\/a>) formalities through Video, amidst the COVID-19<\/a> pandemic. Thus far, ICICI Bank<\/a>, IDFC First Bank<\/a>, IndusInd Bank<\/a>, Kotak Mahindra Bank<\/a> and Yes Bank are amongst the lenders to have rolled out Video KYC<\/a> options for customer onboarding, since the pandemic first emerged.<\/p>\n

Kotak Mahindra Bank<\/b><\/p>\n

Kotak Mahindra Bank on May 18 was the first Indian bank to introduce a video KYC facility for customer onboarding for its savings account portfolio. The bank said this would be used to open a saving account in its 811 portfolio of products on a pilot basis and would later be extended to other products in a phased manner.<\/p>\n

In Fiscal year 2020, Kotak Mahindra Bank had opened 44 lakh saving accounts from its \u2018811\u2019 portfolio. Amidst the lockdown, the bank said it was opening 14000 accounts per day, according to figures disclosed by the bank from May 1 to May 12, 2020.<\/p>\n

IndusInd Bank<\/b><\/p>\n

IndusInd Bank on May 22 announced the roll out of its Video KYC platform for both its saving accounts as well as credit card customers. The bank in a statement said the facility would simplify the on-boarding process for new customers opening bank account and applying for credit cards.<\/p>\n

The bank tied up with BankBazaar to implement the process for its credit card application, which it described as a first-of-its-kind service in the banking<\/a> industry.<\/p>\n

IDFC First Bank<\/b><\/p>\n

IDFC First Bank on May 27 introduced the option of Video KYC for the onboarding of its saving accounts customers. The bank in a statement said \u201cThe digital facility offers customers a branch-like experience at home, making it possible to meet bankers virtually, at a time convenient to the customer,\u201d whilst adding, \u201cThe zero contact method completely does away with paper work or biometric verification, thereby removing physical interaction between the bank and customer from the KYC process.\u201d<\/p>\n

IDFC First Bank said the feature would enable customers to finish the KYC process in \u2018approximately\u2019 two minutes through the Video interface.<\/p>\n

ICICI Bank<\/b><\/p>\n

ICICI Bank on June 25 rolled out a Video KYC facility in order to facilitate complete \u2018Know Your Customer\u2019 for retail customers opening savings accounts, including a salary account or even in the case of them wanting to avail any personal loan with the bank. The lender has in the initial phase made available the facility of Video KYC for saving account customers and to those availing a personal loan from the bank, and also for those applying for \u2018Amazon Pay ICICI Bank Credit Card\u2019 while the other credit cards variants and home loan and retail products will soon incorporate Video KYC.<\/p>\n

ICICI Bank said it was India\u2019s first bank to roll out Video KYC facilities for the opening of a salary account and for those availing a personal loan.<\/p>\n

Yes Bank<\/b><\/p>\n

Private Lender Yes Bank on June 26 announced the launch of its \u2018digital saving account\u2019, which as part of the product has contactless and paperless account opening formalities. The bank said customers who would be onboarded through a video KYC platform would be given a virtual debit card which could be used for online transactions. Yes Bank in a statement said the product eliminated \u2018the need for a branch visit, physical documentation or any in-person interaction.\u201d<\/p>\n

The Reserve Bank of India<\/a> (RBI) had in January 2020 first allowed Banks to onboard customers using Video based Customer Identification Process (V-CIP) for financial services companies, as a consent based alternate method of establishing the customer\u2019s identity.<\/p>\n

Know Your Customer (KYC) is an essential input for Prevention of Money-laundering (Maintenance of Records) Rules, 2005, making it vital to digitise\/ automate the current KYC processes.<\/p>\n<\/div>\n