Aadhaar enabled e-KYC process could save over Rs 10,000 crore for banks and telecom operators over the next five years, says a survey.
According to a recent study by MicroSave, a development consulting firm, using Aadhaar enabled e-KYC process for customer acquisition, could be highly beneficial for banks and telecom operators in India.
“If e-KYC is adopted for customer on-boarding by banks (for savings bank account opened through branches and alternate channels) and by MNOs (for pre-paid mobility), an estimated Rs 10,000 crore can be saved over the next five years (by 2021),” the study said.
The study further said that apart from substantial cost savings for banks and financial institutions, Aadhaar enabled e-KYC is significantly more efficient compared to current paper-based KYC. Customer enrolment processes followed by banks also take longer time and it can be two to four weeks before an account is activated. Whereas Aadhaar e-KYC enabled bank accounts can be activated and ready to transact in a few minutes.
Given that e-KYC provides near instant verification of customers identity and their address, substantial cost reduction can be achieved through elimination of paper based verification, movement and storage being replaced by digital processes. Further, automation of the KYC verification process leads to a more efficient process that takes less time, thereby offering faster customer on boarding, it added.