Discover the important functional concepts related to Account Holders and Application. In this article, you learn about

• Account Holder basics
• Application
• KYC verification
• Vectors

What is an Account Holder?

An Account Holder is any person or corporate that has a banking relationship with an Issuing Financial Institution (IFI). For a clearer understanding and management, they are categorized into:

• Real Account Holder (RAH): Also known as Individual, a Real Account Holder uses the banking products created by fintechs on Fusion. RAHs are identified and authenticated using various identifiers (phone number, email) and due diligence  procedures (KYC) prescribed by regulatory bodies. Examples of RAHs include prepaid Account Holders.
• Legal Account Holder (LAH): Also known as Corporate, a Legal Account Holder is any registered business defined as a legal entity by regulatory bodies. Examples of LAHs include fintechs, partnership firms, merchants, and so on. Fintechs using Fusion to build their products are identified as LAHs on Fusion. Corporates who avail those products are identified as LAHs as well.

Application

Account Holders are on-boarded onto Fusion by creating an Application. The process of creating an Application is similar to opening an account in the real-world banking system. 

RAH application

Creating Application for RAHs consists of the following steps:

1. Collect Account Holder details like name, date of birth, OVD, Vectors and so on.

2. Create and submit Application with the collected details.
3. Review and approve of the Application is done by IFI .

KYC verification

Know Your Customer (KYC) is a business process to verify your customer details such as identity proof and address proof as prescribed by RBI guidelines.

The Account Holders can be created either with minimum KYC or full KYC verification. For more information, see KYC.

Vectors

Vectors are unique identifiers for an Account Holder in the system. Examples of Vectors are phone number and email. Vectors are used to authenticate the account holders for different actions performed by them on their accounts. 

To get Account Holder details using Vectors, see Retrieve Account Holder details using vectors.