Due to high-security risks, KYC requirements are getting strict worldwide. Identity verification is very essential for large businesses when it comes to customers’ onboarding. identity verification is being done in many ways, without even visiting any company physically. it might be in the form of biometric identification or electronic document identification. Furthermore, another way of customer verification is becoming more popular in the world of ID identification. KYC video is growing in the digital customer verification market.
Several industries, mainly the finance sector overlapping with Fintech applications in need of remote identity verification. KYC video, although it is included in the most appropriate methods which are used for identity verification digitally with the help of KYC experts.
What is a KYC video?
KYC video, sometimes known as video identity verification or digitally KYC video call, is a quick, easy to use, and highly secure method for the customers’ verification remotely.
Having an incredibly secure method in a business of KYC video makes it tough and difficult for fraudsters or cybercriminals to commit identity theft crimes. This process also makes sure of regulatory compliance in the world.
Fraud Elimination: It is a strong preventive measure for the thieves because the process is in a human-in-the-loop approach, which reduces the cyber risk significantly.
Faster On-boarding: This decreases the cost, and improves the efficiency of customers’ onboarding process.
KYC/AML Compliance: Know Your Customer using video, can help KYC/AML compliance. Its processes, build trust and allow you to obey the strict regulations.
Challenges and Solutions for KYC video
In a typical method, an individual had to provide the application and required documents for KYC in person. In addition to being limited to opening accounts at the bank, the business was also limited to gaining more customers when customers had to visit its office. Only businesses with offices in the same region will be considered by the customers. To reach more clients, businesses were compelled to create more branches.
This is not an issue any more thanks to digital KYC. KYC video verification process is fully online, customers can open their accounts from their homes remotely.
Customers may also consider organizations without a presence in their city or state. Geo-tagging is used in video identification solutions to confirm that the customer is present at the mentioned address.
Digital KYC video verification, not just made the whole process online but also makes it fast. The digital verification process verifies documents quickly because of its automated system. Even the live call with the agent lasts only a short while.
KYC verification required personally verifying customers, which required a few employees allotted to this purpose. Furthermore, the company has to establish branches in different locations in order to attract more customers.
digital KYC has made businesses cost-efficient, they do not need to open multiple offices in different areas. Businesses need only a few offices to host employees. Getting rid of costs can significantly improve a business’s bottom line. The company saves a lot of money by using companies like AuthBridge to provide KYC video solutions.
End of Paper Documents
Customers formerly had to provide filled application forms, photocopies of KYC documents such as ID cards and passports, and evidence of residency. All steps of the KYC process can be completed online with a KYC video solution. Using an OCR, the system reads and verifies the data on your ID card.
A KYC expert will make a video call to confirm the customer is real and will perform a liveness check. Even more specific information will be request, such as security questions that you must answer.
The traditional KYC verification process had one of its biggest flaws in that it frustrated the clients, who abandoned the process in the middle of it. The full process was only taken by individuals who had no other option and require the company’s services.
Businesses that deal with a video KYC solution lower their chance of losing a customer simply because the onboarding procedure is easier. The company’s revenue will increase significantly as a result of the decreased client dropout.
Machine learning (ML) and artificial intelligence (AI) is interrupting the way of business. There has always been an interdependency between customer transformations & innovations, as well as processes. By staying on top of the dynamic and fast-moving industry trends and competition, KYC video and digital accounts provide ease to the customer experience.
In order to combat the growing risk of fraud and money laundering, these institutions need to deploy digitally advanced verification solutions. KYC video is a fast-paced and suitable process in which KYC expert tries to handle all the traditional methods of verification with digital or video verification.