India’s third largest private sector bank Kotak Mahindra Bank Limited (KMBL) has announced the launch of Aadhaar based e-KYC of the client using face authentication, the company said in its media release.
The Aadhaar based face authentication method is used as an alternative to the currently used fingerprint authentication on Kotak Bank Digital Savings Account.
“Kotak is one of the first banks to go live with enabling client onboarding via face authentication-based e-KYC,” the company claimed in its media release.
The authentication is done via a mobile app newly developed by UIDAI, and no additional device is required to perform the authentication, the release said.
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The authentication process is completed in matter of few minutes, the release said.
Currently, Kotak Mahindra Bank is offering this service to all savings account holders onboarding via partner channels like BSS Microfinance. It plans to extend this service to other channels in due course.
Customers who visit the branch can provide consent for completing their KYC using Aadhaar based authentication.
They will be authenticated using the Aadhaar authentication process as prescribed in the bank regulations.
A successful face authentication confirms that physical face being scanned for verification matches the one that was taken at the time of enrollment of Aadhaar number and verifies the identity of the person.
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“Kotak Mahindra Bank believes in using the latest technology to bring in new and improved digital banking solutions to our customers. We would like to thank UIDAI for introducing the face authentication app through which we can offer this seamless digital onboarding to our customers,” Puneet Kapoor, President-Products, Alternative Channels and Customer Experience Delivery, Kotak Mahindra Bank said.
Benefits:
Cost Efficient: Onboarding via face authentication-based e-KYC will further help to reduce the cost of acquiring as the cost pertaining to fingerprint device procurement and maintenance will go away.
Fingerprints Change: This modality will also provide resolution to fading fingerprint miniature capture issues and related failures, especially for sourcing in the rural areas where farmer fingerprints change over the period of time.
