Decentro, a banking infrastructure startup, announced significant upgrades to its existing DigiLocker & KYC stack, as India’s e-KYC sector is expected to grow to $500 million in the next years. With these new enhancements, Decentro’s Fabric module can cut client onboarding drop-off rates by more than 20% while also accelerating customers’ GTM timelines by 10X.
Customer KYC and fraud prevention remain the most pressing issues for businesses across industries. According to a recent industry survey conducted by TDCX, 49% of fintech companies listed KYC checks as their top issue while conducting their business. This is because KYC operations in India and around the world have traditionally been expensive and time-consuming, with a small bank paying Rs. 50 crore or more per year on manual KYC processes. Aside from the cost burden, lengthy KYC processes discourage clients from finishing the onboarding process, resulting in high drop-offs. With approximately 1.2 billion KYCs completed in FY22, this business is expected to become a $500 million industry by FY24.
To ease the KYC process, the Government of India broadened the scope of DigiLocker by including it in the list of public digital infrastructure solutions available to fintech firms, allowing them to reduce onboarding expenses considerably. However, in the absence of a solid DigiLocker KYC workflow, enterprises in India resort to incomplete KYC to simplify their onboarding process, which can result in compliance concerns, greater fraud risks, and higher operating expenses in the long run.
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Decentro’s Digilocker stack (part of the wider Fabric module) speeds up the KYC process by allowing pinless Digilocker signups and changes to the Digilocker workflow to include multiple documents and issuers. This makes the KYC process two times more efficient and automated while also supporting businesses in retrieving certain papers, further tailoring the KYC process to their needs. Here are some screenshots from the new flow that well-known players such as CashE, Pocketly, BankSathi, and others have already begun to use on a large scale.
Commenting on the updates & launches, Rohit Taneja, Co-founder & CEO at Decentro, said, “Decentro was founded to empower the fintech & BFSI industry to thrive by enabling them to focus on innovation while we care for their infrastructure needs. Over 60% of the typical companies that need to do KYC do not have the time or bandwidth to build automated KYC workflows. Hence, empowering them with our Fabric module became imperative for us.
With Decentro’s DigiLocker stack, companies can easily integrate KYC workflows onto their platform, reducing onboarding costs by more than 20% and reducing go-to-market timeline by 90% while keeping their customer data secure. This is a significant step for our ecosystem and the 700+ companies we serve to make their end consumer’s online journey seamless and secure, a critical element in elevating the Digital India mission.”
Decentro has been improving onboarding for firms and the BFSI industry in India for the past three years, serving over 700 active customers such as AU Small Finance Bank, MoneyTap, FamPay, and NewTap Finance.
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