The process of opening a bank account has changed a lot in the age of digital banking. Long queues and lots of paperwork are a thing of the past. Today, banks are using new ways to make opening an account faster and easier for customers. One of these new ideas is video KYC account opening, a technology that lets banks verify their customers’ identities from a distance. In this detailed guide, we’ll look at five reasons why the video Know Your Customer (KYC) is a good way to open a bank account.
Better service for customers
With video KYC, customers can open a bank account without having to go to a bank branch. They can do this from the comfort of their own homes or offices. This is especially helpful for people who have busy lives, can’t move around much, or live in remote areas. Using a video call with a bank representative, customers can open an account and verify their identity, among other things, using this technology. All you need is a steady internet connection and a camera-equipped phone or computer.
This new way to open an account gets rid of the hassle of the old ways, making the process more enjoyable and less time-consuming. In turn, banks that offer video KYC can get more customers and make a good first impression.
Less time and money spent
One of the best things about video KYC account opening is that the process takes less time and costs less money. Traditional ways of opening an account often require customers to make multiple trips to a bank branch and spend a lot of time filling out forms and bringing in supporting documents. With video KYC, these steps can be done much faster because customers can just upload their documents and verify their identities during the video call.
Also, banks can save money on operational costs by making it easier to open new accounts. As video KYC gets rid of the need for physical verification, banks can rely less on manual processes, which saves money and makes their staff more productive. This can then lead to better customer service and a more competitive market position.
Security and compliance have gotten better
Using video KYC to open a bank account helps improve security and compliance. With video KYC, banks can check the identities of their customers in real-time. This makes fraud and identity theft less likely to happen. Also, the technology lets banks keep a digital record of their interactions with customers. This makes it easier to track and audit compliance with regulations.
For example, ICICI Bank makes sure that its video KYC process follows the rules set by regulatory bodies like the Reserve Bank of India (RBI). This not only helps protect customers but also protects the bank’s reputation and reduces the risk of getting in trouble with the government. Customers can trust that their personal information is safe and that the bank is following best practices in the industry.
More people can use banking services
By using video KYC account opening, banks can reach more people and make their services easier to use. For example, people who live in rural or remote areas and don’t have easy access to a physical bank branch can still easily open a savings account. This increased access to financial services is important for promoting financial inclusion and giving people and businesses the tools they need to take part in the formal economy.
Also, this technology can be especially helpful for people who don’t have bank accounts or don’t have a lot of access to traditional banking services. By offering video KYC account opening, banks can help close the gap and make sure that more people can use their savings accounts, loans, and investments.
Switching to a digital way to open an account is also better for the environment. By reducing the need for paper documents and trips to bank branches, banks can reduce their carbon footprint and help make the world a better place. Customers who care about the environment will appreciate what banks do to be less harmful to the environment. Also, banks that care about sustainability are more likely to get customers who care about the environment, which helps them get even more customers.
Digital ways to open an account, like video KYC, also help cut down on waste and save resources. Since people are using less paper, fewer trees have to be chopped to make paper and less energy is used in the making and shipping of paper. Also, since people aren’t going to the bank as often, they are using less fuel and making less pollution.
Better interaction with customers
Video KYC account opening also has the benefit of getting customers more involved. Customers can build a personal relationship with the bank through a live video call with a bank representative. This can make customers happier and more loyal to the bank.
During the video call, customers can ask questions and get answers to any questions or worries they may have about opening an account or the bank’s products and services. This personalised approach lets banks better meet the needs of their customers and make their services fit each person’s needs.
In turn, customers feel they are more important, which makes them more likely to keep using the bank’s services and spread the good word about everything. This can make customers more loyal to the brand and keep them as customers for the long term.
In the end, customers and banks can benefit from video KYC account opening in many ways. It makes things easier for customers, saves them time and money, improves security and compliance, gives more people access to banking services, helps the environment, and gets customers more involved. As more banks, like ICICI, start to use this technology, it’s clear that video KYC is changing the future of banking and making it easier for everyone to use. By using these new ways of doing things, banks can stay ahead of the curve and meet their customers’ changing needs.