The full form of eKYC is ‘Electronically Know Your Customer.’ You may have heard about the concept of eKYC while applying for a loan, getting a SIM Card, and more.
eKYC helps service providing companies know that their services are used for legal purposes. eKYC is the digital version of customer verification compared to physical KYC that is done in-person or in-store.
What is eKYC?
eKYC is the process of verifying the details of a customer, like his address and identity digitally or online. It is done using your Aadhaar Card. An OTP is sent to your Aadhaar registered mobile number.
Once it is entered in the eKYC form, the identity of a user gets authenticated instantly.
Compared to the physical KYC verification, the eKYC process is seamless and takes less time. Hence, a large number of companies are using eKYC verification online to identify a customer. eKYC is also done for existing customers from time to time. It is done by updating their details and ensures that they use the services for legal usages.
Here’s why the eKYC is the future:
The physical KYC process takes longer to complete. It involves the filling up of the KYC application form and the submission of documents’ copies. Doing physical KYC means you also have to invest your time and efforts in completing it.
In contrast, you can complete the eKYC process online. Since the process completes instantly, companies are able to add more customers to the network.
There is no waiting like conventional KYC. Overall, it is beneficial for both subscribers as well as service-providing entities.
With the passage of time, with eKYC so much beneficial and feature-rich for customers and companies, it is bound to phase out KYC soon.