In today’s fast-paced digital landscape, businesses are constantly seeking ways to increase revenues, improve customer acquisition, and expedite the onboarding process. In a world where technology is ruling, AI is trending and ChatBot is becoming tools of the modern age, KYC process and customer onboarding methods have also evolved and turned themselves into a digital zone, making the process hassle-free, quick, more secure and convenient for people and organizations. The introduction of the digital method took a step ahead in KYC and customer acquisition with a better, advanced method, beating the traditional ways.
Digging deeper, the new methods of KYC, with digital techniques, are said to be not only reliable but also provide a layer of security, enhancing the experience of the customers. The new technological-based digital KYC evades the challenges of the old traditional KYC process. The adoption of digital verification techniques, such as eKYC and Video KYC, has become a game-changer for businesses in India, making the process hassle-free and convenient for customers.
Introduction of Traditional Customer Onboarding Methods
Traditional customer onboarding methods involve manual processes that rely heavily on paperwork, and in-person verification, and often result in cumbersome and time-consuming experiences. People work tirelessly, checking papers, and filling forms manually. The process is time-consuming, with a scope of error and repetition of work.
The process of customer onboarding remains a fundamental aspect of any company’s growth and success. Customer onboarding is the crucial bridge between acquiring potential customers and establishing lasting relationships. Traditionally speaking of customer onboarding, the processes are grounded with face-to-face interactions, paper documentation, and done manually. These methods have played a pivotal role in ensuring the credibility of new clients, complying with regulatory requirements, and initiating the delivery of products or services. However, as technology continues to reshape industries and customer expectations evolve, these time-tested approaches are facing scrutiny and challenges.
In this blog, we will hold discussion and delve into the traditional methods employed for customer onboarding, understand their inherent constraints and challenges, and acknowledge the risks associated with their use. It is essential to explore this landscape to fully appreciate the significance of transitioning to more agile, efficient, and technologically-driven alternatives in the form of digital verification methods, which promise to enhance the onboarding experience and empower businesses to adapt to the digital era.
Challenges of traditional customer onboarding
Lengthy Processing Times:
The traditional approach to customer onboarding is slow and can take days, if not weeks, to complete.
High Operational Costs:
The manual verification process involves substantial manpower and resources, leading to high operational costs for customers as well as the organization.
Inefficiency:
Errors and inaccuracies in manual data entry can lead to compliance issues and regulatory penalties.
Customer Friction:Lengthy onboarding processes can deter potential customers and result in loss of business opportunities, which might change their organization or withdraw their desire to be involved in the KYC process and hinder the customer onboarding process.
Risk Factors Involved
The traditional customer onboarding methods also pose inherent risks;
Identity Theft:
Manual verification methods are susceptible to identity theft and fraudulent activities.
Compliance Risks:
Failure to comply with evolving regulations can result in fines and damage to a company’s reputation.
Digital Verification Model:
eKYC and Video KYC
In development to the current technology-oriented world, organizations have ditched the old-age traditional format of KYC and Customer onboarding and adapted themselves to the digital world. The existence of the digital verification process is a solution to address these challenges and mitigate risks, the digital verification model has emerged, primarily in the form of eKYC and Video KYC.
How to do eKYC and Video KYC
eKYC is a digital identification and verification process that enables businesses to confirm the identity of customers electronically.
Benefits of eKYC with Evaluationz:
eKYC, which involves the use of digital documents, biometric data, and official databases to authenticate a customer’s identity. It is highly efficient and reduces the onboarding process to a matter of minutes. With Evaluationz, there is no scope of errors with eKYC and video KYC, eliminating the need for physical documents or in-person verification.
With Evaluationz, you will have enhanced security, minimized errors, and regulatory compliance, making it a hassle-free experience.
Video KYC (Video Know Your Customer) with Evaluationz
Video KYC builds upon eKYC by adding a real-time, remote face-to-face component to the verification process.
With Evaluationz , you will have direct interaction through live video calls, with trained personnel who can visually confirm the customer’s identity and collect necessary documentation. Video KYC offers a seamless and secure onboarding experience, especially in industries requiring higher scrutiny, such as financial services and insurance. It maintains the speed of eKYC while providing an extra layer of assurance and fraud prevention through real-time human interaction.
Both eKYC and Video KYC are instrumental in expediting customer onboarding, reducing operational costs, enhancing accuracy, and improving customer experiences and is an easy format breaking old traditional manual work.
Complete your eKYC and Video KYC, remotely now with Evaluationz in three basic steps:
1. Real-time matching, with instant detection
2. 3-step authentication
Benefits of Digital KYC and Video KYC
Rapid Onboarding:
Digital verification processes, such as eKYC and Video KYC, can onboard customers in less than 3 minutes, ensuring a swift and seamless experience.
Cost-Efficiency:
By automating the verification process, businesses can reduce operational costs and enhance efficiency.
Accuracy:
Digital verification methods minimize the risk of human errors, ensuring data accuracy and regulatory compliance.
Enhanced Customer Experience:
Streamlined onboarding processes reduce friction and enhance customer satisfaction.
Leveraging Face Recognition and Voice Recognition:
To further expedite the onboarding process and enhance security, businesses can integrate AI-driven facial recognition and voice recognition technologies. This not only accelerates onboarding at scale but also adds an extra layer of security.
AI Generative Facial Recognition:
With AI generative facial recognition, businesses can swiftly verify the identity of customers while preventing identity theft. This technology enables businesses to verify individuals’ identities remotely and with high accuracy.
Voice-Based Biosecurity:
Voice recognition technology provides an additional layer of security for fraud prevention and secure payments. It allows for biometric verification using the customer’s unique vocal characteristics.
Conclusion
The adoption of digital verification methods such as eKYC, Video KYC, and advanced technologies like AI generative facial recognition and voice-based biosecurity is instrumental in improving customer acquisition, expediting onboarding, and enhancing security. By transitioning from traditional methods to these digital approaches, businesses can experience significant improvements in their operations and drive higher revenues. For an enhanced experience, one can visit the officials of Evaluationz , a tech-enabled risk mitigation and background verification services, making it easy for verifications and other customer based services, ensuring safety while doing customer on-boarding.