As we know about the necessity of distinguishing and authenticating the client to follow KYC guidelines. However, the cycle of conventional KYC is turning out to be obsolete and less viable as the fraudsters and identity thieves have figured out how to move beyond that framework. To make the verification cycle safer and successful we should investigate video KYC measures. One of the developing patterns is KYC on video which can get you video KYC check. In this blog, how about we examine what is the process of video KYC and how it can assist the clients with getting video verification.
The Need For Video KYC
Banks and financial institutions are under the continuous scrutiny of regulatory authorities and KYC is one of the major requirements that every institution dealing with has to fulfill. Organizations are implementing KYC practices to oblige with changing KYC/AML requirements. With the current situation going on and the world moving towards digitizing, traditional KYC practices are not reliable enough. The reason is, traditional KYC processes require the physical presence of customers and are time-taking. Moreover, manual customer and document verification can be error-prone, costly, and cumbersome.
According to a study, with every 1 point increase in customer satisfaction, organizations generate 3% revenue. Many customers abandon the customer onboarding process if they find it cumbersome and time-consuming. In order to enhance the customer experience and streamline the onboarding process, businesses need a better and advanced solution. That’s where video KYC comes in.
Video verification permits organizations to check their clients on a live video call. We can take video KYC as a substitute for face-to-face verification. Customers can get themselves video verified from the comfort of their homes. In fact, in this pandemic situation, video verification is the most reliable process for onboarding customers since it eliminates the need for physical interaction. Moreover, video KYC solutions incorporate advanced artificial technology to detect identity fraud in real-time. Along with face match online, video verification also authenticates the document verification of the customers that too during the video call.
Know your customer on a video call has a few advantages, however, why is the requirement for video confirmation developing nowadays? The expanding number of difficulties prompted this turn of events, and it would not be an exaggeration to consider it the force behind changing KYC requirements.
Video KYC for verification
Video KYC is a similar cycle as KYC in which organizations and monetary institutions are needed to check and distinguish every one of their clients before authenticating them. Be that as it may, the video KYC process is completed on a video call with a KYC expert. Here is the manner by which the way toward getting video checked is completed.
- The procedure initiate after the client fills the enrollment form available on the site
- After the enrollment form, the client is connected to know your customer expert on a video call.
- On the video call, the client is asked to move their heads and perform small movements. They even inquire to answer a few simple queries.
- This is done to authenticate the client is physically present and not a forged picture is being shown in the webcam.
- The face of a person is authenticated by a 3D liveness detection test.
- Then the know your customer expert takes the content of the client to show an identity document. The edges of the document should not be crumpled or tampered with.
- The KYC expert will inquire the client to show an ID document. It could be a driver’s license, identity document, passport.
- The identity document must be shown in the camera properly from all sides so that the authenticity of the ID document can be checked as well.
- HI and AI is both used to carry out the authentication process to cross-check if anything is wrong or missing. KYC experts can judge the body language and behavior of the client.
- Once the KYC procedure is done and your identity is verified through video and your data is secured in the back office.
Industries that can use video KYC
KYC is necessary for some businesses based on their regulatory obligations while an opportunity for those who’re fighting evolving cybercrimes. Below are some industries which can benefit from video identification of customers:
Banks are bound by the most stringent KYC/AML regulations so they can’t onboard customers after weak KYC processes. On the other hand, they’re struggling with the rising competition from fintech and changing customer demands. Video KYC is a suitable substitute for in-person KYC/AML screening.
The online gaming industry can use video customer verification to fight spoof attacks and reduce minor exploitation on their platforms.
Currently, many countries are supporting fintech sandboxes but fraud is on the rise. Safe customer onboarding and payment protection are inevitable for the fintech companies to grow and gain customer trust.