Originally published at finovo.tech/blog/how-to-open-account-using-digilocker — the canonical version has the latest updates.

How to open accounts using DigiLocker in India

Imagine it's mid-April, and your brokerage in Mumbai has its hands full with the end-of-financial-year rush. Every minute saved in processing client documents feels like a win. Here's where DigiLocker steps in as a game-changer.

What is DigiLocker?

DigiLocker, launched by MeitY, is an Indian digital document wallet that provides Indian citizens with a secure way to store and share documents online. As financial institutions look to streamline their account opening processes, DigiLocker offers a compliant, efficient way to retrieve and verify client documentation. It integrates seamlessly with eKYC systems, reducing manual verification time and improving accuracy.

Why use DigiLocker for account opening?

Using DigiLocker for account opening simplifies the verification process, making it more convenient for both customers and institutions. Here's how:

1. Document authenticity: Documents fetched via DigiLocker come directly from issuing authorities ensuring authenticity.
2. Efficiency: Reduces time spent on manual document checks, speeding up the onboarding process.
3. Cost-effective: Minimizes paperwork, storage, and verification costs by integrating digital methods.

Steps to open an account using DigiLocker

1. Integration setup: Financial institutions need to integrate their systems with DigiLocker's API. This integration ensures seamless retrieval of documents like Aadhaar, PAN, and more.
2. Customer onboarding: When onboarding a customer, the broker or NBFC can request document access through DigiLocker.
3. Document verification: Once the customer consents, their documents are fetched in real-time and verified automatically.
4. Account approval: With verified documents, the account can be approved rapidly, benefiting the customer and the institution.

If you're shipping WhatsApp eKYC, our enterprise build handles real-time verification efficiently.

Overcoming common challenges

Though DigiLocker simplifies many processes, certain challenges might arise:

• Customer awareness: Some customers may not be familiar with DigiLocker and its benefits. It falls on financial institutions to educate them during onboarding.
• Seamless tech setup: Ensuring seamless integration with existing systems might require some initial setup efforts from your IT team.

If any of this hits a nerve, drop us a note — first call's just a conversation.

The future of account opening with DigiLocker

Regulation continues to favor digital initiatives. SEBI and RBI have both issued guidelines that encourage financial entities to leverage digital infrastructure like DigiLocker. As tech evolves, expect more features, increasing both security protocols and user convenience. Embracing these changes will not only ensure compliance but drastically improve customer satisfaction.

— the finovo team