Feb 14, 2023
Digilocker Services Expanded To Simplify KYC And ID Verification
Digilocker Services Expanded To Simplify KYC And ID Verification
Introduction
India’s Finance Minister Nirmala Sitaraman announced the Union Budget 2023-2024, which extends support for the Indian fintech sector. The extended Digilocker platform supports simplified Know Your Customer (KYC) process to enable easy access to individual and business financial services. It provides greater stability to the digital infrastructure as the Indian fintech market is expected to grow to $1.3 trillion by 2025. The Digilocker platform will be a one-stop solution to create a risk-based dynamic KYC process.
Digilocker Initiative Supports Fintech Innovation
The Digilocker service will help widen the reach of Digital India initiatives. It supports faster onboarding of consumers. Digilocker is used to store digital identity of individuals issued by state and central governments and other registered agencies. The new scope will allow the addition of more documents. It will also be expanded to support MSMEs, large businesses and charitable trusts.
The KYC process will be further simplified with PAN as a standard identifier that automatically connects to financial data. This speeds up the identification process and supports error-free data collection. It also increases the efficiency of fintech companies to store and share data securely and quickly.
How Will Digilocker Simplify the KYC Process?
The newer version of Digilocker is called Entity Digilocker. This will serve as an organisational version of Digilocker. This feature has been expected for many years now.
The new move will simplify address and identity updation using the Digilocker + Aadhaar. This initiative makes it possible to quickly update addresses when people move from one address to another. The latest residential address can be easily reflected on all government documents using this combination. The concept for this feature was visualised 2 years ago, and it has become a reality now.
Digilocker’s expansion to include more address and identity verification documents will further simplify KYC. Fintech companies can process credit applications much faster with automated and simplified KYC. All data can be pulled from digital sources, resulting in faster delivery of fintech services.
The fintech companies can now use Digilocker services for easy and quick reconciliation. It will expedite updating the identity and addresses of individuals and businesses. It provides access to anonymised data.
Currently, Digilocker has 145.95 million users. The major challenge for digital media initiatives is the need for awareness. As more and more individuals and businesses start using Digilocker, it will become much more widespread. Fintech companies have more scope for innovation with digital storage and sharing essential KYC documents. The Digilocker platform is designed with easy user access and privacy, which will strengthen its use across fintech companies.
Tartan Empowers Lending Companies To Speed Up Identity Verification
Tartan can help lending companies quickly verify customer documents using Digilocker. Now that Digilocker services are also extended for businesses, there is no need to upload documents for KYC. By partnering with a full stack verification API company such as Tartan, fintech companies can easily complete KYC even if the consumer doesn’t have a Digilocker of their own.
With the user’s consent, Digilocker accounts can be created on the fly to pull relevant details. It provides a seamless experience for the end user, and it supports a smoother onboarding process. Tartan bank APIs can easily integrate with your existing user journey APIs, making Digilocker-powered KYC a breeze. It speeds up identity verification, prevents manual errors, and ensures a better customer experience.
Conclusion
Digilocker expansion will reduce the operational costs of lending institutions. Digital documents are irrefutable and readily available on the public cloud. Authorised agencies, banks, regulators, and other approved business entities can get access to Digilocker documents for instant identity and address verification and reconciliation. The paperless process also enables a risk-based approach, enabling fintech lenders to create innovative products. This can improve the profitability of fintech lenders and make it possible for them to extend coverage. The cost savings and faster turnaround times can be passed on to consumers.
About Tartan
Tartan is a full-stack verification API and payroll connectivity company that provides real-time identity, address, and income verification. It automates consumer verification and KYC to evaluate financial health. The company uses 150+ accurate and verified data points for accurate risk assessments to expedite customer verification for lending companies.Click on the link below to try the Tartan console (It’s free, fast and easy) - https://console.tartanhq.com/signup
