The requirements for KYC are becoming more rigorous throughout the world due to the rising number of frauds. When it comes to onboarding consumers, identity verification is crucial for business organizations. There are several methods for customers to verify their identity without visiting the business office physically. It could be in the form of biometric or digital document verification. Businesses, particularly those in the finance sector, are significantly impacted by anti-money laundering (AML) regulations. Due to the rise in the cases of financial crime, these institutions need efficient KYC/AML solutions. One of the solutions that are emphasized for this is the video Know Your Customer procedure. The video KYC market is expanding continuously as a convenient method for remote customer verification and onboarding.
What’s Know Your Customer (KYC)?
Know Your customer is a standard that verifies the clients’ identity at the time of onboarding, to make sure that the customer is reliable for business relationships. Several verification checks are applied to ensure customer legitimacy.
What does Video KYC Mean?
Video KYC allows users to perform remote Know Your Customer verification from anywhere using a video call. In contrast to conventional methods, the KYC expert uses a video call to validate the documents, check their liveliness, and determine the person’s residential address.
The Need for Video KYC in Businesses
When using the video Know your customer, clients are linked with a certified Know Your Customer specialist who conducts the interview and requests identification documentation issued by the government as evidence of identity. The Know your customer specialist questions the customer throughout the procedure and also watches their behavior and body language from different angles to make sure the person in front of the camera is not a fake.
Basic Parameters for Video KYC
Businesses have to follow some listed guidelines while performing video verification for customer identification:
- Take screenshots of the customer and record an ongoing video call
- Capture photos of ID documents during a video call
- Compare the customer photographs with the image on identity documents
- Verify all the information provided by the customer with identity documents
- Must use updated Artificial Intelligence (AI) technology
- Recorded data must be securely saved with complete information on the date and time
Benefits of Video KYC
Proactive Fraud Prevention
Among the most important benefits of video KYC is its ability to effectively prevent fraud. Companies can significantly reduce identity fraud cases and secure their operations by using live video KYC verification and artificial intelligence (AI).
Compared to ID checks using photos, a video would be more secure. It’s considerably more difficult to fake a video if the user must adhere to particular requirements, such as holding a piece of paper or saying a specific phrase. I believe that in the end, it provides all compliance teams more assurance that a user is who they claim to be.
Eliminate Money Laundering Risk
Registering reliable clients will shield your company from money-launderers. Businesses may thoroughly investigate the backgrounds of their clients using video KYC interviews to make sure they are not on any sanctions or blacklists. In order to combat money laundering, KYC video might be a useful tool.
Video KYC is a vital safety measure, an additional layer of protection, and a way to prevent financial crimes, especially money laundering. For banks and companies, a combination of video KYC and other AI-based verification methods may prove to be unbreakable risk security.
Less Paperwork
The companies can wave goodbye to the overflowing paperwork. It drawn-out manual processes now that the entire verification process is carried out digitally.
Eliminate Human Mistakes
Using advanced artificial intelligence and liveness recognition, in results chances for human errors are significantly reduced.
Drop-off Reduction
Through the use of video KYC, traditional methods of authentication can be significantly reduced because of the quick and smooth process of customer verification.
Improved Customer Experience
The main challenge of the verification process, such as the drop-offs that happen at various stages of the physical verification procedure, is eliminated by video KYC verification. A protracted onboarding process might upset new clients, who eventually give up.
Customers can quickly confirm their identity using a video KYC solution by presenting their identity documents to the camera and responding to a few appropriate questions posed by the KYC expert conducting the interview. The user’s information will be verified when it has been collected.
In a Nutshell
Financial organizations and the banking sector can quickly onboard customers by incorporating robust video KYC services.
