As our Ultimate Guide to Video KYCVideo KYC has brought out, the Reserve Bank of India's (RBI) introduction of Video KYC in January 2020 has revolutionized customer onboarding and verification processes in regulated sectors. Where are Video KYC's impacts most felt?
In those industries that require rapid, secure, and compliant onboarding of customers.
This piece delves into real-world applications of Video KYC,, demonstrating how various industries are using this remote verification technique to speed up onboarding, lower compliance expenses, and improve customer experience.
How Does Video KYC Work?
In advance of jumping into use cases, here's a quick overview of how Video KYC works:
- The user submits identification documents and joins a live video call for verification..
- A verification officer verifies the location of the customer through geo-tagging.
- AI-driven face matching and OCR (Optical Character Recognition) confirm authenticity..
- The customer responds to random questions to assure liveness.
- On verification success, a KYC Risk Scorecard is generated.
With this secure and real-time process established, companies can now remotely onboard users rapidly and compliantly.
Industry-Specific Use Cases for Video KYC
Enhanced Customer Convenience1. Re-KYC for Dormant Trading Accounts
One of the frequent problems in the trade sector is users dropping their accounts and coming back much later. Reopening such accounts previously demanded physical KYC—a friction point for re-engagement. Video KYC simplifies reactivation, thereby enabling retention with ease.
2. SEBI, AMFI, and RBI Entities Regulatory Compliance
Financial institutions need to perform In-Person Verification (IPV) for regulatory compliance in customer onboarding and identity verification. Using Video KYC, entities such as banks, NBFCs, AMCs, and brokers are able to complete IPV requirements remotely—saving costs and shortening onboarding times without sacrificing compliance.
3. Payment Gateway Merchant Onboarding
Time-consuming and document-intensive traditional merchant onboarding. Payment gateways are now able to use Video KYC to authenticate merchants remotely, cutting TAT (Turnaround Time) from days to hours—vital for scaling rapidly in competitive fintech markets..
4. Staff Onboarding in Gig and Logistics Platforms
Rapidly growing platforms such as Swiggy, Zomato, and Delhivery have to onboard thousands of delivery partners or drivers quickly. Video KYC makes remote real-time verification of contract staff possible, allowing companies to scale workforce operations without drag.
Key Use Cases of Video KYC
Video KYC is transforming identity verification across several industries. While the process remains consistent, its implementation can be customized for various operational models.
1.Banking and Financial Services
Used for onboarding savings account holders, loan applicants, and credit card customers with minimal turnaround time and full compliance.
2.Fintech Platforms
Fintechs integrate AI, OCR, and liveness detection to offer seamless digital onboarding and meet regulatory norms.
3.Insurance Companies
Video KYC is used for verifying applicants during policy issuance and claim processing, improving transparency and fraud protection.
4. E-Commerce and Payment Gateways
Used to onboard merchants securely by validating identity, compliance, and transaction behavior.
5. Gig Economy and Logistics
Helps onboard delivery partners and staff through contactless identity checks—improving speed and reducing risk.
Conclusion : Why These Use Cases Matter
Video KYC is not a regulatory success story. It's a business success story. Whether it's reactivating customers, onboarding merchants and gig workers, it's a versatile and useful application. Cost savings, speed, and compliance benefits make it a strategic resource for any organization with high-volume onboarding.
At Pix Dynamics, our AI-powered Video KYC solution is built to support secure document verification, real-time face match, and regulatory compliance—all while providing a smooth user experience.
Ready to take your onboarding digital?
Contact us today to explore how Pix Dynamics can help you deploy a secure, scalable Video KYC system.