Angel One is a technology-led financial services company providing broking and advisory services, margin funding, loans against shares and financial products distribution to the clients under the brand Angel One. The broking and allied services are offered through online & digital platforms and through the network of over 16,000+ registered authorised persons as of December 31, 2021.
Angel One is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE), Metropolitan Stock Exchange of India (MSEI), NCDEX & MCX, and is also registered as a Depository Participant with CDSL.
Challenges faced by Angel One:
Brokerage firms act as a liaison between their clients and the stock exchange. Their primary function is to buy and sell financial products, including stocks, on behalf of their clients. As a result, a great amount of paperwork was involved in the process of KYC and Angel One struggled to collect the desired data and verify the details.
Traditional process for customer onboarding
The traditional process for customer onboarding is a tedious one and affects the service delivery of the business. Typically, the agent walks into the customer’s location to collect photographs, ID proof, and address proof. As the agent meets the customer, he has to fill in the details in an application form and get the physical signatures wherever needed. Post which the agent needs to give the copy of the acknowledgement as a printout and store the application form for a period of 20 years in a storeroom for audit purposes as per regulations.
Verifying and validating the customer details was a time-consuming process which depended on the type of customers they deal with on a daily basis. Apart from this, there was a cost to multiple manpower needed across the process. The entire process took them two to three days as they collected the data manually and validated it in the back end with a team, and the process was also not 100% accurate as there was too much manual interference in the data collection process.
This, in turn, resulted in a high cost of Rs. 3000/- per transaction, which the customer had to bear for the onboarding process. The entire process was tedious, exorbitant, inaccurate and expensive.
Resolution: eKYC and eSign
eKYC and eSign are the tools we integrated to resolve the problems faced by Angel One. As a part of the resolution process, the eKYC and eSign were incorporated into the application, which was used for customer onboarding.
By doing it, the entire Aadhaar details were retrieved directly from the Aadhaar database in a few seconds. The only input required from the customer is the Aadhaar number and fingerprint upon which the KYC was successfully collected.
The company had an application where the other details were collected, and once all the information was obtained, we used to generate a pdf file with all the details, which will be sent for signing. This process took two to three days initially, but now with the eKYC and eSign implementation, the entire process has been simplified and can be executed quickly. This also impacted the cost factor; previously, the onboarding cost was Rs. 3000/- per customer, which has now come down to Rs. 300/- per customer that includes server costing, hosting charges and other miscellaneous charges.
How we powered eKYC & eSign for Angel One:
Angel One needed a fintech partner to solve the issue faced by them. eKYC and eSign are one-stop solutions for paperless, contactless, and cashless customer onboarding system. An error-free identity authentication tool plays a vital role in customer onboarding. It usually takes two to three days to complete as it requires physical presence, many documents, and signatures. The motive of the tool was to simplify the onboarding process by digitizing it, which can also help to speed up the process, cut down the cost & reduce fraud.
Process Flow:
Our tool has dramatically transformed the customer onboarding system. The agent has an electronic application which performs eKYC for photo ID proof and address proof and performs eSign to digitally signed documents which is valid in the court of law to complete the successful onboarding of a customer. The application form is stored in a cloud. Additionally, we push acknowledgements through the Digi locker of the customer and enable electronic mandates e-NACH for the auto-debit facility.
Results achieved:
By implementing the eKYC and eSign, we provided a delightful customer onboarding system. Angel One experienced a significant boost in the number of customers as they could serve more customers with greater convenience in a speedy manner at an economical cost.
