Opening a bank account through a mobile app will be the next progressive step towards paperless banking if banks are ready to adopt and develop the right mechanisms. Recently, banks such as DBS Bank and Kotak Mahindra Bank released a feature that enables customers to open a bank account directly through the mobile application.
The recent years, we have witnessed banks and financial institutions turning towards electronic KYC (Know Your Customer) mechanisms to make documentation process smooth and customer friendly.
Axis Bank, DBS Bank, the Federal Bank Ltd. and Kotak Mahindra Bank are some of the first movers who have initiated eKYC for opening a bank account through a web browser or a mobile application of the respective bank.
App-Based Account Opening Process
If you wish to open a bank account using eKYC, the least you need to have are your Aadhaar number and your PAN number. The Kotak Now app from Kotak Mahindra Bank utilises video-conferencing for the completion of the account opening process after the eKYC documents are uploaded.
The DBS Bank’s Digibank app allows users to activate an electronic wallet which can later be upgraded to a savings account. The electronic wallet can be opened by using your registered mobile number and email ID. At the end, you are required to visit the nearest partner store or the DBS Bank branch to record your fingerprint and complete the account opening process.
The Federal Bank through its Fedbook app enables users to open a zero-balance savings account. Besides submitting the scanned Aadhar and PAN card copies, you would be required to take a selfie through the Fedbook app and submit it.
Primary Documents Required
An Aadhar card number, as well as a PAN card number, are must for anybody to open an app-based bank account. However, the process to submit these documents may vary from bank to bank.
Roadblocks You May Encounter
Though you should find the whole account opening process easy and smooth, there could be a few hiccups you might encounter. For instance, the phone number that you submit for the account opening process needs to be the same as mentioned in the Aadhaar card.
In Kotak Now’s case, making a video call from the app can be tough on a 3G network. You may most likely need a Wi-Fi or a 4G connection to place the video-call. Your account will be activated once you successfully complete the call and you will receive the welcome kit to your residence. However, after the process, the bank also sends a representative to collect your signature on physical photocopies of your documents and other bank forms.
Download The Genuine App
It’s important to exercise caution while downloading the apps mentioned above. You may find a number of fake apps that display bank logos to mislead users and steal their confidential information. You must check the authenticity of the publisher and download the app from a reliable app store.