Digital lending apps are reshaping how consumers access credit making loans available anytime, anywhere. But speed alone is not enough. For lenders, identity verification, fraud prevention, and regulatory compliance remain critical checkpoints before any loan can be approved or disbursed.
This is where Video KYC (vKYC / V-CIP) becomes a game-changer, enabling faster loan disbursals without compromising security or compliance.
Video KYC is a regulator approved digital identity verification process that allows lenders to verify a borrower’s identity through a secure live video interaction. Instead of physical visits or manual document checks, customers complete KYC remotely using a smartphone or web device.
For digital lending platforms, Video KYC acts as the final trust layer confirming that the applicant is genuine, documents are authentic, and risk checks are completed before funds are released.
Before the adoption of Video KYC, loan disbursal workflows were often slowed down by:
These processes could take days or even weeks, leading to poor customer experience and higher operational costs especially for NBFCs and fintech lenders handling high application volumes.
To know more about VKYC,Please read our related blog:A Guide to Video KYC solution: Transforming Customer Onboarding
Video KYC digitizes and compresses the entire identity verification step into minutes. Borrowers can complete KYC instantly after submitting a loan application, allowing lenders to:
This shift transforms loan disbursal from a multi-day process into a same-day or near-instant experience.
Live video interaction ensures the applicant is physically present and matches the submitted identity documents eliminating impersonation and proxy fraud.
Integrated OCR and AI engines extract and validate customer details instantly, reducing manual review and speeding up approval workflows.
Features like face match, liveness detection, document authenticity checks, and geo-tagging help identify fraud early preventing risky disbursals while maintaining speed.Together, these capabilities allow lenders to approve loans faster without increasing risk exposure
Many digital lending apps and NBFCs now rely on Video KYC to scale operations.
Examples include:
By integrating Video KYC, these lenders have reduced fraud losses, improved approval rates, and increased customer trust.
As lending becomes more data-driven and instant, Video KYC will continue to evolve with:
For digital lenders, Video KYC is no longer a differentiator it is core infrastructure.
Video KYC has redefined how digital lending apps verify customers and disburse loans. By replacing slow, manual verification with real-time, secure, and automated identity checks, lenders can approve loans faster while staying compliant and fraud-resilient
For digital lending platforms aiming to scale responsibly, Video KYC is the key to faster disbursals, lower risk, and superior customer experience all in one seamless workflow.
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