MSB Docs Digital Onboarding – Guide to Eliminate Paper from Paperwork
Whether it’s a Banking, Insurance, Regulated or High-risk Corporation, a secure and compliant onboarding is a need of the hour. In this competitive era, if you are running an organization and relying upon paper forms, wet signatures, and manual compliance checks for onboarding customers, then it’s an alarming sign for you to pull up your socks. Traditional onboarding processes are slow and inefficient to match up with the pace required to keep going in this world of digitization.
Here’s How Traditional Onboarding Risk Businesses in Falling Behind the Competition
The onboarding process involves a lot of documentation to be done, which requires in-person signing. With traditional practices, this turns out to be impossible when reaching people in different locations is difficult. Moreover, the cost and time needed to carry out these paper-based processes manually are much higher than their counterparts. At the same time, if these processes are undertaken manually, it involves a lot of print, sign, and scan hassle, which turns out to be more prone to errors and does lack security as well.
Digital Onboarding Came for Rescue!
Stepping into the digital world lets you take your business anywhere since all the manual paper-based processes are transformed into automated paper-less processes. This results in a drastic reduction in operational costs, improvement in client’s convenience, and ease in spotting new market segments. In addition to these, there are a plethora of benefits in transforming your paper-based process digitally. Going Digital:
- Makes processes quick and easy
- Is Highly Secure
- Increase Productivity
- No More Physical Documentation Required
- Is Legally Compliant
SEBI Prescribed Aadhaar eSign – Made Digital Onboarding Easier
SEBI has, from time to time, taken various steps in favor of making business processes as easier as possible. In the recent initiative, SEBI has enabled online KYC, eSign, Digilocker , and electronic signature as permitted by the Government of India under the Information Technology Act, 2000, and the Rules made thereunder. Now you must be wondering how it helped in making digital onboarding easier. Continue reading these statements in the recent circular rolled out by SEBI and you will get to know:
- Any Aadhaar holder can forward their documents by digitally signing the same using the similar eSign framework that was being operated under the provisions of the second schedule of the Information Technology Act and guidelines issued by the controller.
- According to the Section 5 of the Information Technology Act, 2000 recognizes electronic signatures (which includes digital signature) and states that where any law provides that information or any other matter shall be authenticated by affixing the signature.
- The eSign mechanism of Aadhaar shall be accepted in lieu of a wet signature on the documents provided by the investor. Even the cropped signature affixed on the online KYC form under eSign shall also be accepted as a valid signature.
Since the Aadhaar based signing is legally permissible, this eliminates the in-person signing process and all the documentation part can be carried out digitally.
Industries That Can Leverage the Benefits of Aadhaar eSigning
This use of technology can be made by the SEBI registered intermediaries.
Make Aadhaar eSigning Legally Permissible
In order to ensure that you are using Aadhaar eSign in a legal way, choose a platform where your mobile and email is verified through One Time Password (OTP) or other verifiable mechanisms. Note that the mobile number/s that are being used for verifying the signatures and are accepted as part of KYC should preferably be the one linked with the Aadhaar.
Leverage Added Benefits from VIPV (Video In-Person Verification) Feature
SEBI registered intermediaries can now make use of Video In-Person Verification for onboarding customers. Following are the requirements to leverage this benefit in a legal way:
- VIPV can be done only after obtaining your customer’s informed consent.
- This process should be done in a live environment.
- The activity log, along with the credentials of your customers with whom you are performing the VIPV must be stored securely and retrieved easily.
- The parties involved in the VIPV must be easily recognizable.
- Customers need to show the document, KYC forms and signatures during the call and might be asked to give confirmation using OTP.
- Once done, this VIPV must be saved digitally in a safe, secure and tamper-proof environment.
- The date and time stamps must be affixed with this saved VIPV.
If all such conditions are met, then a big hassle of carrying out in-person verification can be easily removed from the business processes.
MSB Docs Platform Has Aadhaar eSigning and VIPV Functionality Adhering to All Legal Requirements
MSB Docs being a smart document solution, offers their customers Aadhaar signing to enable a paperless customer journey. This helps our customers in digitizing document capture processes and automate the KYC and compliance in real-time. MSB also lets their customers use VIPV for onboarding by keeping all the specified requirements in place. Seeking more information? Get in touch with us!