An Informative Guide on Video KYC: Meaning, benefits and steps

Advancements in the financial sector have brought with them numerous perks. From applying for a personal loan to completing the verification via video KYC, everything is possible online. This contactless facility lets you complete the verification formalities without submitting any physical paperwork or the need to travel to the lender’s office.

Read on to learn what video KYC means, its benefits and more.

What is Video KYC?

Video KYC, or the video-based customer identification process (V-CIP), is a way using which financial institutions verify your identity digitally in real-time. Here are some essential points:

• A representative of the financial institution captures your live image during a video call. 
• You need to display your original documents for proof directly on camera. 
• The representative compares these documents with those submitted during your personal loan application process on the same video call. 
• This method is more accurate compared to regular KYC verification since it includes real-time interactions and secure storage of your data.

Benefits of Video KYC

More and more financial institutions are adapting and offering the facility of video KYC for account opening, credit applications and more. Here are some of the benefits this facility offers:

• It allows financial institutions to verify your identity online within a few seconds.
• You need not go through the hassle of travelling and carrying your physical documents, as you can complete the process from your home.
• This facility makes the verification process convenient and time-effective for you.
• It increases the reach of financial products and services in remote areas which do not have physical branches of institutions.  

Also Read- What is e-KYC

Steps Involved in the V-KYC Account Opening Process

The online video KYC process is quite straightforward and quick. Here are the steps for KYC of a personal loan:

• Step 1: Get a device with a webcam or front-facing camera with a stable internet connection and gather the required documents.
• Step 2: Complete the Aadhaar-based e-KYC by providing your Aadhaar number or submitting Aadhaar details from Digilocker and verifying it with an OTP received in your registered mobile number.
• Step 3: Join the link of the audio-video call sent by the financial institution via email or SMS at the appointed time.
• Step 4: Show your identification documents, such as Aadhaar and PAN cards, clearly on the camera.
• Step 5: The representative will capture your photo for identity verification and ask a few questions to verify your identity against the documents provided. 
• Step 6: Upon completion of the video KYC for account opening process, the institution will review your application and notify you of its approval or rejection.

Also Read- How to Keep Your Account Safe from Online KYC Scam

Tips to Prepare for Video KYC for a Personal Loan

While it is a quite simple process, here are some tips that can help you prepare for your online video KYC better:

• Ensure you have a device with working webcams and microphones, such as laptops, smartphones, laptops or desktops.
• Prepare and collect all the identification documents you may need to show during the call.
• Make sure the speed of your internet is high to avoid any interruptions during the verification process.
• Go to an area that has optimal lighting and a plain background that shows your face and the documents clearly.

This facility makes opening bank accounts, getting loans and other transactions much more convenient and time-effective. For instance, with Fibe, you can get an Instant Cash Loan of up to ₹5 lakhs 100% digitally from the comfort of your home. You enjoy minimal formalities, pocket-friendly rates and various other benefits. Install the Personal Loan App or visit our website to apply in minutes! 

FAQs on Video KYC

What will they ask in the video KYC?

During the video KYC call, the representative will verify your identity. For this, they may ask you the following:

• Your basic details
• Your application

What is the difference between video KYC and physical KYC?

A physical KYC, as the name suggests, is where you have to visit the office of the financial institution for the verification formalities. Whereas, video KYC includes completing the verification process digitally via a video and audio call.

Is the original PAN required for video KYC?

Yes, you need your original PAN card to complete the KYC process. The representative will ask you to show it on camera during the video call so they can verify your identity.

What if video KYC is not done?

While availing a financial product or service, you need to complete the verification process. Your application may get rejected in case the KYC formalities are not completed.

Do I need to book an appointment for video KYC?

Generally, you do not need to set an appointment for the same as the financial institutions set it themselves as per your availability.