How Digital KYC Enables A Faster Onboarding Process In The Banking Sector?

2. All the financial institutions have been maintaining the application forms together earlier by using physical documents like identity proof, address proof, birth certificate, etc. To fulfil the KYC, they use these types of documents. KYC is referred to as the “Know Your Customers Norms”. KYC is a reappearing process; it cannot be a one-time process. This KYC is not just the process of collecting the records of the customers wherein it is also the process of maintaining the updated records. All the banks usually spend much time, money, resource to collect and maintain the physical copies of KYC records. But which in turn create a great burden of work on the banks or any other financial institutions. Most of the banks are facing the limitation of keeping the records of their customers. Limitations of banks regarding maintenance of physical documents records Some of the limitations that banks are facing to maintain the physical document records of their customers are as follows: Single KYC view of a particular customer not available within the multiple departments of the bank this is because the KYC via physical documents were restricted to some departments only. Sometimes false details being updated in the system without sufficient data. There is a possibility that KYC documents may get misplaced. The process for document collection I troublesome All the points stated above will lead to the misconduct of KYC. This may result in huge penalties for banks sometimes. There can be many possibilities of legal disputes or cash delays towards the customers and much more. But all thanks to digitization as it makes most of things possible and easy. Digital KYC proves to be the greatest blessing for any financial institute or banking sector. During the onboarding process, one has to submit the required documents. But physical document submission is not a wise thing to do in this modern era. Now there is a great option of digital KYC, which makes most of the things possible with ease. With the help of digitization, most of the banks transform up to a great extent. The major advantage of digitization in banks is meaningful and successful KYC compliance. For the onboarding, digitization will ensure the centralization of KYC. Moreover, it is also negating bottlenecks while Internal & external audits, transaction processing, and a lot more. During the onboarding process, the digitization process can help various financial institutions to provide hassle-free process towards KYC maintenance. Furthermore, it also helps the institutions serve the customers easily as it reduces the burden on the bank employees. Major advantages of digital KYC in the banking process

3. It provides paperless KYC Consent-Based KYC Now there is a possibility of real-time verification It is adequately parameterized Digital KYC has a simple user interface It is highly secure Digitalization also offers single window KYC The KYC collection & maintenance process is upgraded by using the digital KYC, and it will benefit everyone. In the upcoming years, it is assumed that most of the banking processes will become paperless. Signzy is one of the well-known platforms which provides the digital onboarding solution for banks, NBFCs as well as various other financial institutions. They believe that through a combination of Artificial Intelligence (AI) & blockchain, the digital compliance process becomes more convenient but yet secure. If you want to get more information about the Signzy, then reach us today! Source: https://signzy.mystrikingly.com/blog/how-does-digital-kyc-facilitate-the-onboarding-process-in- the-banking-sector