Know Your Customer or KYC is a legit regulatory process that is implemented by banking and financial institutions to verify the identity of a prospective customer who wants to open a new account with them. The entire process of establishing the identity involves a lot of paperwork and a tedious process that not only involves identification papers but proof of residence along with background checks if necessary. This is carried out by financial institutions in order to verify and evaluate the risk that is involved in this new relationship that a prospective customer wants to establish.
However, as technology progresses, the process of KYC has become paperless due to a new initiative taken up by Unique Identification Authority of India (UIDAI). This would help financial institutions from banks to brokerage houses to verify any new applicant’s credentials in a matter of seconds. The amount of convenience involved in this process is brilliant.
Why should you opt for Digital KYC facility from your Brokerages?
- If you utilize digital KYC to open a new account, you will also be able to link existing bank accounts to your Aadhaar card.
- This will help other service providers in the future to verify your details electronically just by giving consent to UIDAI so that they can release your personal information to any institution requiring it to verify your identity.
- Digital KYC will make the entire tedious process of KYC paperless and seamless. The hassle that customers had to bear before has been banished by digital KYC and it takes only a few seconds to complete the process.
- You can also update your KYC details by using your Aadhar card in the future if the need arises.
What are your Benefits?
As an investor who is getting digital KYC services from their brokerage house, you are set to receive a lot of benefits, namely,
- Digital KYC will reduce any risks that were previously involved with losing important documents. You will not have to carry around multiple important identification and residential proof papers in order to verify your existence.
- The Aadhaar card itself serves as a pretty important document to establish your identity. The information that your financial institution will receive will add more credibility for you.
- The entire process is hassle-free and cost effective because you do not have to make a physical journey or do it repeatedly for a few days to finish your verification process. Either the institution will come to you or you can do the same at a KYC center.
Brokerage houses like Angel Broking has launched their digital KYC process so that investors can experience a hassle-free account opening process just by implementing a digital signature using bio-metrics. You should opt for brokerages that provide you with such a speedy experience with zero amount of paperwork. Your thumb impression will be stored and collaborated with the UIDAI’s Aadhar database so that all your information can be shared in a jiffy. So, bid goodbye to paperwork and say hello to convenience!