How Dhan Achieved 99% Success Rate During Demat Account Onboarding with HyperVerge

Introduction

Dhan is an online stockbroking, trading and investing platform founded in 2021. Floated by Pravin Jadhav, former CEO of Paytm Money, it has swiftly become a prominent player in the Indian market. Committed to providing a secure and transparent environment, Dhan focuses on catering to the unique needs of India’s expanding options trader community.

Dhan has always prioritized empowering its traders with tools for better control and visibility over their trades. They introduced features such as real-time cost breakdowns before trade execution, helping users know precisely how much they spend before making a trade. The platform’s commitment to transparency often co-aligns with regulatory shifts, such as SEBI’s later endorsement of the same feature.

Dhan promises product innovation and a user-centric approach for a frictionless customer experience. As a result, the platform has grown to host over 500,000 active users.

Challenges and Solutions

Dhan faced the dual challenge of complying with regulatory requirements while ensuring a smooth onboarding experience for its users. HyperVerge, recognized for its industry expertise, emerged as a reliable partner to help Dhan put together key elements of its onboarding process.

Onboarding is a very real-time scenario. We can’t let any of our users be dropped off

Anirudha Basak

Product Manager, Dhan

Live Selfie

When Dhan commenced operations in 2021, user verification posed a significant hurdle, especially the live video capture during onboarding. HyperVerge introduced the innovative “live selfie” solution, capturing and detecting the passive likeness of users. The feature neutralized the challenges of capturing a live video while opening a Demat account and introduced a mechanism to verify the authenticity of the users. This significantly reduced the risk of losing potential customers that would have otherwise dropped off during a tedious onboarding process.

With HyperVerge’s solution, there was a 100% success rate in rejecting fraudulent attempts during onboarding. Techniques like using fake images or attempting the process via video call were easily prevented.

I’m very proud that whenever someone tries to bypass the live selfie by putting a fake image or doing it by a video call, 10/10 times HyperVerge would reject that bad apple and only allow the good entrance into the system.

Anirudha Basak

Product Manager, Dhan

PAN Verification

Manual verification of user documents, particularly PAN cards, proved challenging for Dhan’s internal team. It was time-consuming to audit every misaligned/damaged/fraudulent PAN card manually.

HyperVerge’s SDK solution automated the process, providing clear instructions to users on how to affix their PAN card on the portal, eliminating the need for manual verification. HyperVerge’s solution also suggested changes in real-time, allowing for a streamlined verification process that detected and rejected invalid PANs, reducing the workload on the internal team.

Aadhaar Masking

Initially, some regulatory requirements related to Aadhaar scanning mandated that the first eight digits and the QR code of the Aadhaar card be masked. HyperVerge already had an on-hand solution for this.

Subsequently, when the regulatory framework evolved, mandating the masking of only the digits, HyperVerge efficiently adapted its solution to align with the amended requirements. Dhan had implemented the Aadhaar masking solution provided by HyperVerge during this phase.

Advantages

Dhan’s partnership with HyperVerge proved advantageous in several ways:

Empowering the Internal Team

HyperVerge’s solutions empowered Dhan’s internal team by automating processes and reducing manual interventions. The team could now focus on strategic aspects of user engagement and platform enhancement rather than being bogged down by routine verification tasks.

Quick TAT

Dhan, who is committed to a 10-minute onboarding experience, partnered with HyperVerge to meet this goal. HyperVerge’s custom solutions delivered on the promise of a quick and efficient onboarding with minimal downtime.

This efficiency has been a key differentiator for Dhan in the highly competitive stockbroking landscape. While the regulatory landscape may introduce changes, Dhan and HyperVerge collaboratively ensure that the onboarding experience remains within the 10-minute timeframe.

Consistent Performance

HyperVerge’s high success rate in identifying invalid PAN cards and authenticating live selfies is a testament to its consistent and reliable performance. Before implementing HyperVerge’s solutions, there were instances of fraudulent users entering the system, requiring manual audit and removal. With HyperVerge, attempts to bypass Dhan’s security measures were rejected with a 100% success rate.

In terms of reliability… we’ve had almost 98-99% success rates

Anirudha Basak

Product Manager, Dhan

Frictionless Onboarding Experience

HyperVerge’s tailored solutions addressed challenges like damaged verification documents, lack of clear images, and fraudulent attempts, ensuring users a smooth 10-minute onboarding. Dhan could also nudge users to make necessary changes in real time, thus removing the need for a relentless back-and-forth between the user and the system. This was particularly important for Dhan as they are committed to constantly upping the bar on user experience.

Strategic Partnership and Industry Alignment

HyperVerge’s prior experience with industry players aligned seamlessly with Dhan’s requirements, fostering a strategic partnership. This alignment proved crucial in navigating the requirements of the stockbroking domain—a highly regulated field—while planning for future market trends.

Up-to-Date on Industry Trends

HyperVerge’s agility in promptly adapting to domain requirements and expanding its scope to address new challenges was a great advantage. This aligned with Dhan’s proactive approach to being an innovative platform that stays ahead of industry trends.

HyperVerge is doing a pretty good job at being able to understand the industry and where the gaps are…if you understand where the regulator is moving towards, it helps to define the onboarding experience

Anirudha Basak

Product Manager, Dhan

Ease of Operation

From the start, Dhan commended HyperVerge’s ability to keep ahead of requirements. Its readily available and user-friendly app, available on Android and iOS, allowed Dhan to take stock of ready-made and custom solutions that HyperVerge had to offer, reducing the time to go live and ensuring a hassle-free onboarding process.

The Journey Ahead

Dhan’s partnership with HyperVerge has significantly enhanced its identity verification processes, ensuring secure, efficient, and user-friendly trading experiences for its customers. Both companies are eager to continue their partnership to provide a frictionless onboarding process. This will require an understanding of the domain and a proactive attitude that HyperVerge already possesses.