E-KYC: Here's Why Digital Verification Is Important For Quick Loan Approval

Outlook Money

E-KYC

Electronic Know Your Customer or e-KYC is a digital process which is employed by financial institutions to verify the identity of their customers.

Reasons why e-KYC is important

1. Faster Verification Process- E-KYC offers a quick verification process as opposed to manual processes. Here, one gets the funds faster as every document is digitally available.

2. Customer Experience

With e-KYC, customers do not need to necessarily visit a bank, they can complete the process by using a smartphone or a laptop at home. Therefore, the user experience here is much enhanced.

3. Increased Security

Here, the loan approval system is made more secure by e-KYC's use of advanced technology like two-factor authentication (2FA) and biometric verification (facial recognition and fingerprints). Identity theft, fraud, and unauthorized access are prevented by these.

Security

4. Cost-Effectiveness

e-KYC assists financial institutions in lowering operational expenses as there is a reduction in manual paperwork and resources.

Cost

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