As technology has grown stronger only, banks and institutions have been drawn to quicker, more convenient methods of on-ramp and verifying consumers. Among the most groundbreaking advancements to this digital process has been eKYC (Electronic Know Your Customer) and its newer version, Video KYC. These processes have ensured identity verification to be seamless, quick, and secure for organizations and consumers too. However, it is equally important to understand what specific documents are utilized under Video KYC and eKYC so that the onboarding process can be presented seamlessly to consumers.

Here, in this article, we are finding out what eKYC is, understanding how Video KYC is performed, and making a note of the documents employed in both of them. You will be having a good-balanced idea of these new verification processes in this article.

What Is eKYC?

eKYC stands for Electronic Know Your Customer and is an electronic verification of the identity and credentials of a person or business entity. Conventional KYC employed document-based documentation and location-based verification, which consumed time and man-power. eKYC does away with such inefficiencies as it electronically verifies documents and biometric information, providing better speed and security.

The fundamental use of eKYC is to enable regulatory compliance, anti-money laundering, and counter-fraud and open customer onboarding within banks, telecos, and other sectors that need identity proofing. Many consumers today begin their search with queries like what is eKYC, which makes it important to clarify that it is simply a paperless, digital method of completing the KYC process.

Benefit of eKYC

Convenient: Can be done anywhere, less travel to branch offices.

Quickness: Automated and improves turnaround time by leaps and bounds.

Cost-Saving: Reducing paper work and man hours, reducing business operation cost.

Precise: Automated information eliminates possibilities of human error and consistency in customer information.

Documents Needed for eKYC

eKYC is based on online verification of the identity document and address document of the individual. Following are the most commonly needed documents for eKYC:

1. Identification Document

Documents like identification document should have the name of the individual, photo, and date of birth. Some of the general identification proofs of eKYC are:

• Aadhaar Card (India-specific)
  
• Passport
  
• PAN Card (India-specific)
  
• Driving License
  
• Voter ID
  
• Other government documents
  

2. Address Proof

Address proof must validate the residence address of the given individual. The correct documents for address proof using eKYC are:

• Aadhaar Card (country-specific for India)
  
• Recent utility bills (electricity, water, or gas)
  
• Driving License (in case of availability of address)
  
• Passport
  
• Bank statement (containing address)
  

3. Photograph

Passport photo is usually mandatory as one of the eKYC documents to be scanned and uploaded or captured on the fly under eKYC.

4. Aadhaar Mobile Number (India Specific)

Aadhaar card must be linked with the mobile number in Aadhaar-based eKYC. The registered mobile number receives an OTP to authenticate the user through the internet.

5. Bank Account or Financial Details

eKYC may ask bank account information like account number or IFSC code for monetary transaction verification or account linking.

What Is Video KYC?

Video KYC is the way of the future when it comes to verification of identity. The title itself suggests, the procedure is verification of customer's document in a live video session. It was a safe option as compared to initial KYC and eKYC, particularly in the post-pandemic era when remote functioning was much in demand.

Video KYC is compliant with regulations and is used by fintech, banks, and insurers to bring onboard simplicity. Video KYC is different from eKYC in that it provides human authentication in the form of a video call with a live video and an added layer of security.

How Video KYC Works

1. Fixing a Video Call: The customers have to get a video call arranged either with the company or with the bank.
   
2. Real-Time Interaction: A qualified officer interacts with the customer via the video call and identifies by identity and documents.
   
3. Display of Documents: Customers show their document proof of identity, Aadhaar, Passport, or PAN card on the call.
   
4. Facial Recognition: The AI platform can compare the customer's real-time facial features to their uploaded image in previous records.
   
5. Customer Location Validation: Geotagging is initiated due to the requirement for customer actual location validation.
   
6. Validation Completion: The agent approves or disapproves the application with all information provided and supplied.
   

Video KYC Documents

Video KYC documents are a bit like eKYC documents but need to be shown live during the video call. The below documentation is generally needed for Video KYC:

1. Proof of Identification

• Aadhaar Card
  
• Passport
  
• PAN Card
  
• Voter ID
  

2. Address Proof

• Aadhaar Card (India-specific)
  
• Driving License (where the address is mentioned)
  
• Passport
  
• Newest bills bills
  
• Bank statements with address verification
  

3. Signature Verification

In certain uses, e.g., opening of bank account, customers can validate their signature by:

• Scanned signature.
  
• Signed application forms.
  

4. Photograph Verification

At video call, the live customer image is matched with the image uploaded by them for verification. It might therefore be necessary to upload a clear passport size photo in advance.

5. Supporting Documents Financial (If Applicable)

The following supporting documents can be requested by some of the banks through Video KYC, i.e., income proof (salary vouchers, Form 16, or Income Tax Returns) for credit cards or loans.

Main Differences Between eKYC and Video KYC

Though both eKYC and Video KYC are to do the same, both are different in numerous ways:

1. Verification Process

• eKYC is automatically done by document upload, biometric authentication, or Aadhaar authentication.
  
• Video KYC has a human element through a video call for manual authentication.
  

2. Security

• Video KYC offers a third degree of security in the form of live location and face-to-face authentication through an official representative.
  
• eKYC is adoptable for faster processes but is very OTP and biometric authentication dependent.
  

3. Speed and Ease of access

• eKYC is more convenient and faster since it needs internet and a matching phone number only.
  
• Video KYC necessitates rescheduling and, in fact, making video calls, and therefore would be very little time-consuming.
  

Advantages of Video KYC Over Conventional KYC

In that fraud prevention strengthens controls needed, Video KYC compares favorably with paper-based and manual KYC approaches on the following counts:

• Real-time validation provides an extra level of confidence.
  
• Reduces reliance on physical visits and documents.
  
• Complies with current regulatory standards for electronic identity verification.
  

Conclusion

Use of Video KYC and eKYC has transformed business onboarding and identity verification worldwide. Having an idea of what eKYC is, and what documents are to be provided in the event of Video KYC and eKYC, can guide customers through the process easily and without fear. Though there is no way to replicate the digital onboarding speed and ease of eKYC, Video KYC adds a layer of security and transparency using the vehicle of live communication.

Banking institutions, telecommunication institutions, and regulated sectors are embracing eKYC and Video KYC as primary identifiers increasingly with the promise of security, scalability, and compliance. While taking a loan or opening a bank account, pre-preparation of documents to be used for eKYC or Video KYC will benefit you.

As technology continues to advance, Video KYC and eKYC will be the norm of verification of identity, hence enhancing the customer experience in the future to be simpler, faster, and secure.