eKYC and eSign

June 16, 2017Tech

In a country with an unbanked population of approximately 70%, onboarding is a real challenge.

Aadhar has managed to get 1.06 billion Indians under its hood, thus successfully covering people from all nook and corners of the country. Currently, 339 million Indians have Aadhar linked to their bank accounts. These numbers throw up an interesting opportunity to use Aadhar to connect even those excluded to financial services.

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KYC for the unbanked has always meant either photocopies of several documents or no proof at all. This suboptimal borrower onboarding increases acquisition costs and the probability of fraud. Wet signatures, on the other hand, require verification and the customer has to visit the branch office several times until the loan gets approved. For the loan officer as well, this means frequent visits to the customer, while maintaining a whole lot of paperwork. In this whole scenario, vital time is lost for the borrowers and the lenders.


eKYC and eSign, which are a part of IndiaStack, allow digital onboarding of anyone registered with Aadhar. Through eKYC, the Identity and Address of the borrower are verified electronically through Aadhaar Authentication via Biometric or an Iris scan. eSign removes the need for wet signatures, and the borrower consent is approved and verified using biometric or IRIS scan, ensuring a foolproof sign up. By leveraging this, we can easily bring the unbanked closer to financial services using a single ID proof. What’s further interesting is that the loan approval process is simplified and done in under 30 mins.

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IndiaStack is a congregation of APIs that allows firms to use the digital infrastructure to build paperless, presence less solutions. Artoo leverages IndiaStack to provide eKYC & eSign services for its lending partners. This lowers customer acquisition costs for lenders and onboarding time for field agents, thus enhancing their productivity.

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