Evolving Paper KYC to Fully Digital KYC: A UX-Focused Journey
The process of opening a DEMAT account involves a mandatory Know Your Customer (KYC) procedure. This procedure, often perceived as tedious and complex, poses significant user experience challenges. The scope for UX enhancements is limited due to stringent government regulations, and the situation is further complicated by the fact that KYC compliance requirements are subject to quarterly changes.
The Challenge
The conventional paper-based KYC method is not just long-drawn but also susceptible to mistakes. It necessitates clients to submit numerous documents, complete protracted forms, and frequently make an in-person visit to the banking or financial institution. This can prove to be a formidable task for clients, particularly for those who lack tech experience or reside in distant regions. Our associates are primarily PSU banks where individuals show reluctance in conducting KYC, incurring account initiation fees without any preceding information.
The UX Process: Research, Define, Ideate, Prototype, User Testing, Continuous Iterations
In my role as a Lead Designer, I advocate for a methodical and cyclical strategy towards design, which encompasses several phases: Study, Determine, Conceptualize, Mock-up, User Evaluation, and Ongoing Revisions. I urged my team to coordinate intimately with our banking associates, and learn how bank employees interact with their customers. This led to our preliminary discussions where we worked hand in hand with users.
Research
The first step in our journey was to understand the pain points of our users. We conducted user interviews, surveys, and usability tests to gather insights about their experiences with the existing KYC process. This helped us identify the areas that needed improvement.
Define
Based on our research, we defined the problems that needed to be solved. We prioritized these problems based on their impact on the user experience and the feasibility of solving them.
Ideate
Once we had a clear understanding of the problems, we started brainstorming solutions. We explored different approaches and evaluated their pros and cons. This helped us come up with innovative solutions that could enhance the user experience while ensuring compliance with government regulations.
Prototype
We then created prototypes of our solutions. These prototypes were used to visualize our ideas and get feedback from stakeholders and users. This helped us refine our solutions and make necessary adjustments.
User testing
We conducted user testing to validate our solutions. This involved observing users as they interacted with our prototypes and gathering their feedback. This helped us understand if our solutions were effective in solving the problems and enhancing the user experience.
Continuous Iterations
Based on the feedback from user testing, we made continuous iterations to our solutions. We kept refining our designs until we achieved a seamless, efficient, and user-friendly KYC process.
The Solution: Digital KYC
To overcome these challenges, we embarked on a journey to evolve the paper KYC to a fully digital KYC process. The goal was to create a seamless, efficient, and user-friendly KYC journey for our customers.
Design Optimisation
We implemented a user-centric design pattern for a simplified KYC process in DEMAT account opening. This involved rethinking the entire process from the user’s perspective and redesigning it to be more intuitive and less cumbersome.
Advanced Verification
We introduced innovative methods like penny drop, facial recognition, and PAN card verification to reduce human errors. These advanced verification methods not only improved the accuracy of the KYC process but also made it faster and more efficient.
Efficient Versioning
We launched an initial version with manual document uploading, segregating the process for improved clarity. This allowed us to test the new process in a controlled environment and make necessary adjustments before rolling it out to all customers.
User-Friendly Guidance
We implemented a step-by-step guide, pre-filled information, real-time validation, and a progress indicator to enhance user experience. These features made the KYC process more transparent and easier to navigate for our customers.
Compliance and Continuous Improvement
We stayed updated with regulatory changes and conducted regular user testing, incorporating feedback for ongoing process enhancements. This ensured that our KYC process remained compliant and continued to improve over time.
The Impact
The strategies implemented resulted in significant improvements:
The KYC completion rate increased by 47%, the highest in the industry.
The ability for customers to resume and complete an incomplete KYC process improved to nearly 47%.
The development cycle for KYC was halved, reducing the time taken to test, build, and execute by 50%.
The use of modular designs greatly contributed to these efficiencies.
These results demonstrate the effectiveness of the UX improvements in simplifying the KYC process and enhancing user experience. The transition to a fully digital KYC process has not only increased customer satisfaction but also resulted in higher conversion rates.
In conclusion, leading my team to evolve the paper KYC to a fully digital KYC process for Fisdom has been a challenging yet rewarding journey. It has not only created India’s best KYC journey but also set a benchmark for other financial institutions. As we continue to innovate and improve, we remain committed to providing our customers with the best possible experience.
