Know your customers, the challenger banks’ way

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India is witnessing a new banking revolution. Riding this wave are challenger banks, making a significant impact on the consumers, so much so that they are now competing with the traditional, long established banks. These banks can leapfrog over traditional boundaries and use technologies to offer branch-free, mobile-based services. Leveraging their lean and agile structure, these players can reach markets quickly and acquire customers rapidly.

With tech DNA, challenger banks are expected to deliver a frictionless experience for the customers. But the regulatory requirements can hamper their functioning, especially remote customer onboarding and customer due diligence processes which can slow down their pace of innovation. So, how to approach this without impacting the ecosystem? The solution lies in technology.

The automated customer pre-screening can help to bring down the risks of frauds and manual errors. A perfect fit into the business model of the challenger banks, the new age KYC will reduce application dropouts, and create a strong brand association.

Solutions like Video KYC and image-based KYC offer facial recognition and liveness detection which can authenticate customers’ identity and location in real-time. Technologies like AI can help in flagging suspicious customers, curbing down the cases of identity frauds that are prevalent in the industry. On-the-go authentication can also improve process transparency.

Also ReadSimplifying KYC for a digital India

The introduction of Digital and e-KYC policies has enabled businesses in BFSI and Telecom to ensure a seamless customer onboarding. The RBI regulatory sandbox will allow the FinTech to scale up quickly, though with limited capabilities. Even without being purely digital yet, the policies can certainly be steppingstones towards a digital India, especially for the underserved and the unserved segments of the population

Challenger banking is fast catching up with consumers. However, their differentiator of remote customer onboarding, and the need to make it effortless and quick has made these organizations vulnerable to financial and identity frauds. The challenge for them is to scale up their defenses without interfering with the customer experience.

TruthScreen, AuthBridge’s real-time, compliant and secured platform for authenticating individuals and businesses, has been continuously working with the leading Indian BFSI players to solve multiple use cases ranging from liveness detection, instantaneous KYC, customer and agent onboarding to enhanced customer due diligence. It’s advanced data aggregation and the matching engine can provide identity verification and fraud detection services, in-turn streamlining the account opening and compliance processes.

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