Mastercard Incorporated MA recently collaborated with India-based RegTech startup — Signzy. The startup is best known for offering a digital onboarding solution, which eases the otherwise time-consuming KYC (Know Your Customer) process for clients, which comprises more than 90 financial institutions of India including banks, NBFCs, insurance firms, asset management companies and many more as well.
With this alliance, Mastercard’s customers will be able to avail Signzy’s remote and secure onboarding solution — Video KYC. The solution, which is equipped with artificial intelligence (AI) and machine learning (ML) technologies, will enable faster completion of KYC application by customers from the comfort of their homes. Not only does Video KYC feature security protocols to avert fraudulent activities but it is also capable of handling enormous volumes of video KYC transactions.
It is worth mentioning that the solution also enables paperless customer onboarding, which will actually accelerate the KYC process by 99% compared with the traditional paper-based one.
Also, the latest move will pave the way for faster completion of contactless KYC process by financial institutions and SMEs (Small and Medium Enterprises) remotely. These institutions will benefit further from Signzy’s AI-Led solution, which can be easily integrated across multiple platforms and has access to numerous KYC databases in India. Notably, this move by Mastercard is a well-timed one as it comes amid the COVID-19 pandemic, which has accelerated demand for contactless solutions.
Notably, shares of Mastercard have gained 27.4% over a year compared with the industry’s growth of 13.9%.
Among its peers, Visa Inc. V has rallied 16.4% in a year’s time, while American Express Company AXP and Discover Financial Services DFS have lost 8.4% and 16.9%, respectively, in the same time period.
Providing Necessary Assistance to India SMEs
Moreover, Mastercard has been making every effort to accelerate adoption of digital payments in the financial services industry, which has been witnessing a surge for quite some time with the pandemic only accelerating the same. It not only intends to welcome more and more India SMEs into the digital economy but also plans to provide the necessary assistance for their recovery, since they have been badly hit by the coronavirus outbreak. Case in point, Mastercard recently committed $33 million to help India SMEs, so that they can somewhat recover from the damage caused by the pandemic.
Furthermore, Mastercard has been partnering with several organizations and rolling out cost-effective solutions for capitalizing on the current prospects in the digital payments space of India. The company’s recent collaboration with BOB Financial Solutions Ltd. (BFSL) and SBM Bank India are testament to the relentless efforts it has been making to strengthen presence in India.
Moreover, it must be mentioned that India is a big market for Mastercard, as the country’s market is in dire need of innovative technologies for upgrading digital payments. This, in turn, positions Mastercard, which carries a Zacks Rank #3 (Hold), well for long-term growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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