The worldwide digital revolution is increasing on a daily basis. Moreover, financial technology supports online payment systems, asset monitoring, and fundraising investments. Thus, it is gaining fraudsters’ attention. These Criminals and hackers are always looking for ways to exploit businesses for their evil goals.
The banking industry incorporates online video checks to ensure compliance with anti-money laundering & KYC regimes. However, there were several loopholes in the old and traditional methods, so experts introduced KYC through video calls for reliable and accurate results. Video KYC solution is an advanced and risk-free technique, mitigating the risk of fraud attempts during customer onboarding procedures.
KYC Video Checks – An Overview
The Video KYC process is a far superior online technique of face-to-face identity verification. Enterprises carry out customer verification through a video call assisted by a KYC professional. The customer must prove their identity through legal documents during the video call.
Top 8 Perks of Video KYC Solution
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Fully Compliant KYC
Until recently, eKYC was very famous, where the customers could partially complete the know-your-customer procedure. However, to get all of the services, customers had to visit their branches to perform in-person verification. Thus, KYC video identification is the only option left for completely compliant and online service equivalent to in-person verification.
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Customer Convenience
Customers can choose a time and place convenient to get the video KYC process done, as opposed to having to physically visit the banks or wait for the agent to see them.
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Customer Base Expansion
Companies can onboard customers using video KYC even from regions where in-person authentication is not possible.
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Safe, Transparent, and Secure
Regulatory departments mandate KYC procedures primarily to check
- Fraud
- Money laundering
- Financial crimes.
Once done, the system stores videos for record and access.
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Bottom-line impact
KYC through video call is a mandatory and cost-intensive process, having digital properties without logistic expenditures. Moreover, it is one of the most reliable systems for dealing with fraud. According to reports, eKYC is up to 50% less expensive, while KYC video checks save up to 90% of expenses.
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Quicker Turnaround Time (TAT)
Banking and finance are competitive industries. For any reason, if an organization cannot complete the video checks, this leads to a significant business loss. Previously, KYC verification used to take almost 20 days, but now it completes the task in under 15 minutes, all with a high level of digitization.
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Saving Time & Resources
Video checks are instant and cost-friendly for banking industries. Business owners can use advanced technology to forgo old approaches which consume a lot of time and resource-draining.
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Seamless Customer Onboarding
Thanks to KYC video identification, many new-age banks and financial corporations are growing, providing class-leading customer onboarding, Know Your Customers (KYC), and eventually offering various financial products.
This process is beneficial for customers as they can now have access to advanced financial products and services without going anywhere. Moreover, legacy businesses must adapt quickly and digitize their systems, or else they will lose out to the next generation of business.
The Working Process of Video Checks
Experts connect with the client through a video-based ID verification process and guide them through the procedures. They also ask a few customer questions to detect any signs of suspicious activity or manipulation. The process of video-based ID verification is below:
- The system provides a registration form for customers to enter their information online.
- After registration, a KYC expert connects with customers for real-time identity validation.
- The professional will guide customers through the complete procedure. In addition, face liveness detection will help experts verify the physical presence of customers at the time of verification.
- KYC professionals will take permission from the customer to collect and record data.
- The expert asks the customer to provide official documents such as
- License
- A Passport
- These trained professionals monitor and identify forgeries in given records and decode the customers’ body language.
- Video KYC solutions use facial verification technology to deter fraud and cyberattacks in real-time with zero human errors.
- After the face and document verification, the customer receives the final authentication outcomes.
Conclusion
Banks and financial organizations provide class-leading digital services to their customers. In addition, implementing the latest ID verification systems, such as video checks, becomes essential for fraud prevention. Furthermore, this procedure allows the customer to connect with a KYC professional to verify their credentials and store them as a backup. The professional also asks customers to answer some questions to detect any signs of deception.
Implementing video KYC solutions also facilitates the banking sector to comply with up-to-date guidelines. Hence, these sectors can offer a risk-free experience to their customers.