Kotak Mahindra Bank launches app to open accounts

Mumbai, Sep 21 (PTI) Private lender Kotak MahindraBank (KMB) has launched an application ‘Kotak Now’ that wouldallow new customers to open an account in a more simpler andcost-effective manner. This is for the first time that a domestic lender hascome up with such facility where a customer can open a bankaccount using its application. "This is an end-to-end application wherein a customerwill be able to open a bank account within 10 minutes, withoutworrying about visiting a branch or any other merchant,"Deepak Sharma, Chief Digital Officer, Kotak Mahindra Bank toldreporters here. He further said that after downloading theapplication, the customer will have to enter their mobilenumber and then key -in a one-time password (OTP) to establishidentity. After this they need to upload an image of eithertheir passport or the Aadhaar card. The customer will then have to get connect through avideo chat with one of the KMB executives and the account getsopened, he added. The bank tied-up with a German start-up ‘WebID’ whichhas a patented technology to establish identities throughspecially built algorithms and has already implemented it in30 banks worldwide, Sharma informed. Implementing the process will help the bank save atleast 50 per cent on "up to Rs 3,000" spent on a new accountopening, he said, adding the expenses like deploying staff,couriering the papers and sending the welcome kit are saved,he said. At present, the process has been implemented only forcurrent accounts and will be soon expanded to other offerings,he said, adding the lender is targeting to open at least afourth of the new accounts through this application in a year. Sharma said WebID’s technology has been approved bythe German financial regulators and the application complieswith the existing know-your-customer requirement of having a"face to face" interaction with the customer. It can be noted that banks have been using the ‘tabbanking’ method of sending a representative with a tablet toopen accounts using the Aadhaar ecosystem. Some banks like Singaporean lender DBS have tried touse mobile phone in a limited way where the customer has tovisit a merchant location to complete the process. PTI AA BENRSY ABIBAS