Video KYC

Video KYC – Shielding Companies from Fraudulent Activities

Companies in the banking industry are offering their clients innovative solutions. With the emergence of these services, there is an increased requirement for online identity verification. This need can be satisfied by integrating the technologies with a sophisticated KYC system like Video KYC.

A KYC specialist or financial firm representative verifies a client’s identification through video KYC. Additionally, they check the documents that were shown during the live video session. After confirming the credentials, a client ask to show their government-issued identity cards to the company representative during the video call. Major financial institutions and other digital service providers have begun putting the necessary infrastructure in place for this new authentication method.

Video Verification – A Need for Digital Era

It would not be an absurd statement to say that video recognition is the current trend that is driving change in the biometric identification sector. The increasing identity fraud is pushing the demand for a safe verification approach, such as video validation, in addition to making the testing quick and cost-effective. In this digital realm, safety is one of the top issues for businesses, and thus the video identification solution is quite effective at thwarting fraudsters’ cunning strategies.

Video KYC – General Guidelines

  • Record video and also capture live pictures of the client
  • Take the picture of  their identity document
  • Cross match the picture of the client with that present on their identity document
  • Compare all the details given on the ID card with those on their documents
  • Use the latest technology such as face recognition 
  • Save the video securely with a stamp of time and date

Video KYC and Traditional KYC 

The term Know Your Customer (KYC) refers to the process of verifying a customer and identifying any potential risks linked to that client. Banks, financial firms, and every other company that deals with money must adhere to KYC/AML rules. In the past, firms used a physical Customer Identification Program (CIP) to confirm the identity of new clients. Customers may have to stop the procedure in the middle because it might take weeks.

The conventional KYC process has a digital equivalent that is faster, more cost-effective, and much more secure termed video identification. With real-time results, the KYC video call streamlines the entire verification procedure by doing away with the paperwork. Customers can open accounts online without physically visiting the business and submitting their identification credentials. Everything is done online, including registration and onboarding.

Advantages of Video KYC 

Video-based client/customer identification procedure has numerous benefits for businesses;

Effective Fraud Prevention

A significant benefit that video KYC provides is real-time fraud protection. Businesses may drastically lower the number of fraudulent activities and increase the security of their operations by using live video screenings and face detection.

Prevent Money Laundering with Video KYC

Hiring trustworthy customers will shield the business from money-launderers. Businesses may fully investigate the backgrounds of their customers using video KYC checks to ensure that they isn’t on any sanction or watch lists. In order to combat money laundering, video identification solutions are a useful tool.

Reduced Paperwork

Companies no longer have to deal with complex paperwork or laborious manual procedures because the entire verification process carries out online.

Eliminate Human Errors

The likelihood of human errors is greatly decreased by cutting-edge techniques like artificial intelligence as well as liveness detection.

Drop-off Reduction

Face identification videos aid in lowering drop-off rates by facilitating a quick and easy client onboarding process, which is distinct from the conventional authentication methods they often are required to use.

Enhanced Customer Experience

The main challenge of the validation process, such as the drop-offs typically happening at various stages of the physical authentication process,  eliminate by KYC via video call. New clients who become impatient during the onboarding process may give up. Customers can quickly confirm their identity using video KYC solutions by presenting their identification documents to the cameras and responding to a few pertinent questions from the KYC professional conducting the interview. After the person’s information gathering, it will confirm.

Faster Identity Verification

The video KYC technique of client authentication takes the place of in-person customer visits for validation. Virtual verifications enable the procedure to perform faster and without delays.

Final Thoughts

Banks and other financial firms must perform identification verification when onboarding new clients. These organizations must use technically advanced authentication solutions to combat the rising risk of money laundering and fraudulent activity brought on by the launch of new internet services being provided to clients. They can keep their business secure and the clients satisfied with the aid of reliable KYC solutions. A speedy verification system that is compliant with their onboarding procedures is the basic feature of the video KYC technology.