If customer onboarding process takes more than a few minutes in today’s digital world, businesses aren’t just losing time, they’re losing revenue as well. For instance, a potential customer signs up to your app or website but your business still relies on soft copy of the physical documents. This will reduce the excitement of the customer to sign up and potentially losing a customer i.e. Onboarding Drop-off.
This is where the CKYC solution plays a key role in Customer Onboarding process. Let’s understand how businesses can use CKYC solution for business to turn a signup process into a seamless experience.
Why Customers Avoid Signup Process?
Understanding the real problem is essential before looking at the solution. Digital friction is the primary reason for customer onboarding drop-off during the first 60 seconds of interaction. Tradition KYC methods often required the following:
- Repeated data entry may annoy customer to sign up for the process
- Not everyone has a scanned copy of the documents like Aadhaar and PAN card on their mobile phone.
- Waiting for a human intervention can take hours or days may lead the customer to forget why they signed up initially.
Note: Every drop-off is a loss for the business or organization.
What is a CKYC Solution?
CKYC or Central KYC solution, enables the uploading, searching, and downloading of customer KYC records from the central repository (CERSAI), providing a unique 14-digit CKYC ID. It is a massive digital library that stores the verified identity records of most of the Indian citizens. A CKYC solution for business allows to tap into the library and instead of asking customer for their documents, a business can simply fetch their pre-verified details from the central database.
Important Ways CKYC Solution Reduces Onboarding Drop-Off
1. Fetching instead of Filling
The most important barrier in customer onboarding is filling the form but with a CKYC Solution, all that a business needs is a PAN number and Date of Birth. CKYC Solution then fetch the CERSAI database and pulls the customer details like name, address, photo and identity proofs instantly.
2. Eliminating Document Upload Failures
Errors such as, the file is too large, the image is blurry or invalid format a one of the key reasons for onboarding drop-off. Since CKYC solution uses data that has already been verified by another regulated entity, the requirement for a fresh document upload is often eliminated for the basic onboarding stage.
3. Real Time Identity Validation
If identity verification takes 24 hours, the customers interest would disappear. In a digital word, a pending status may lead to customer onboarding drop-off. CKYC solution leads real-time verification to real-time activation, meaning the data retrieval happens in seconds.
4. Consistent Experience Across Platforms
A CKYC solution led process is a consistent experience, whether a customer is accessing services via a laptop or a smartphone. It doesn’t require high quality cameras or complex file-sharing software or apps. This ensures that businesses don’t lose customers which may lead to onboarding drop-off.
5. Building Trust
When a customer sees that a business is associated with official registries like CKYC, it builds trust in their mind. It offers a sense of security knowing their data is handled through a regulated, government-backed framework rather than an unknown third-part server.
Also Read: The Power of Instant CKYC Search & Download with Right CKYC Solution |
Why CFO and CTO opt for CKYC Solution?
Integrating CKYC Solution offers several internal advantages for a business:
- Manual KYC Verification involves human intervention such as paper storage, human labour and physical verification costs. CKYC solution is a digital-first process that involves minimum traditional methods.
- CKYC solution ensures that the data used is already verified by a regulated entity, reducing your risk of fraud and adhering to mandatory compliance.
- With a CKYC solution, a business can onboard maximum number of customers in a day.
How to Implement CKYC Solution?
Integrating a CKYC Solution for business isn’t a challenging task these days. Here’s a simplified way of implementing a CKYC Solution:
- Partner with a Tech Provider like Protean eGov Technologies that provides simple CKYC Solution.
- Tech Team then can integrate the CKYC Fetch API into your signup screen.
- Ask for the customers consent to pull their records from the Central Registry.
- The system matches the retrieved data with the user’s input to ensure a 100% identity match.
- Once the Identity match is successfully completed, the customer is moved to the dashboard or checkout.
Industry that benefits from CKYC Solution
While any business can use identity verification, these sectors have experienced the biggest drop-off recovery by integrating CKYC Solution:
- Fintech for digital wallets or saving accounts.
- Insurance for speeding up the policy issuance process.
- Investment platforms to allow users to start trading or buying Mutual Funds in minutes.
- Real Estate for verifying high-net-worth individuals before big transactions.
To Conclude
The goal of digital transformation isn’t just to move from manual intervention, it to eliminate the need for the form altogether. Business who respects customer’s time are more likely to achieve success in the future by adopting a CKYC solution.
In an era where businesses are competing to enhance the speed of onboarding and reduce the drop-off rates, integrating the right CKYC solution must have tool for the business.
So, stop asking for the documents and start fetching growth with Protean’s KYC Search & Reporting Solution.
Frequently Asked Questions (FAQs)
Q1: Is CKYC safe for my business and my customers?
Yes, CKYC is highly secure. The data is managed by CERSAI, a government-regulated body. Access is only granted to authorized institutions, and data is transmitted through encrypted channels.
Q2: Does CKYC replace Aadhaar-based eKYC?
They are complementary. While Aadhaar eKYC verifies identity using biometrics or OTP, CKYC acts as a central repository of all types of KYC documents (PAN, Voter ID, Passport, etc.) that have already been verified.
Q3: Can any business access CKYC data?
A business generally needs to be a reporting entity regulated by the RBI, SEBI, IRDAI, or PFRDA To access the CKYC registry directly. However, tech service providers can help eligible businesses integrate these solutions.
