The financial services arm of Tata Group, Tata Capital, has launched an Aadhaar-based biometric Know Your Customer (KYC) process to help streamline the KYC authentication process for its select loans, making the process more convenient for customers and completely paperless.
As a standardised, mandatory practice before availing any loan, all financial institutions are required to complete the KYC process of its customers. This traditionally involves collection of self-attested copies and verification of original documents.
To simplify, and at the same time make the process more secure, Tata Capital has adopted the biometric e-KYC and digitised this process for online loans such as personal and consumer durable loans.
The paperless process, based on customer's consent, involves a simple two-step biometric authentication using Unique Identification Authority of India's (UIDAI) Aadhaar database.
"Given the rise of the digitally savvy customers in India who are used to quick, easy solutions and the increasing number of individuals with a higher credit appetite, the need to streamline processes and deliver financial solutions more efficiently has never been higher. Tata Capital endeavours to stay ahead of the curve by using technology to ease the loan application process and introduce similar initiatives that allow for efficient engagement with customers," said Chief Operating Officer - Retail Business & Housing Finance, Govind Sankaranarayanan.
"The on-field application of biometric KYC is in line with Tata Capital's commitment to leverage technology and digitisation for enhancing customer experience and expanding reach. Another similar initiative in the pipeline is the launch of e-sign, which will complement biometric KYC to make the process of loan application completely paperless," said Chief Operating Officer - Digital Vertical, Veetika Deoras.
The entire process which has been made digital is easy, instant, and more secure for customers as it avoids the need for any paper exchange between the customer and the sales representative.