Due to high-security concerns, requirements for the KYC are getting strict worldwide. For large business entities, identity verification is very essential when it comes to onboarding customers. Being identified One brickell city centre without visiting any business office has multiple ways. It might be in the form of digital document identification or biometric identification.
Anti-money laundering (AML) requirements have a noteworthy impact on businesses mainly in the finance sector. Financial institutions seek efficient and effective solutions due to the increase in crime. The video KYC process is one of the highlighted solutions for this. Moreover, another method is becoming more popular for customer verification in the world of ID identification. Video KYC process for identification is growing in the digital customer verification market.
Several industries, mainly the finance sector overlapping with Fintech applications in need of remote identity verification. Video KYC process, although it is included in the most appropriate methods which are used for identity verification digitally with the help of KYC experts.
What is Know Your Customer (KYC)?
Know Your Customer is a process that validates the identity of customers during onboarding to ensure trustworthy business relationships. Verification checks apply to determine whether the customer is a legitimate entity.
The Video KYC Process
The video KYC process refers to the digital verification or real-time video identification of customers. The process is easy to use and time-efficient, a very secure method to use digital verification of the customers.
Integration of this incredibly secure protocol in companies, make it difficult for criminals to penetrate the system for identity theft. This process ensures compliance.
Elimination of Fraud: 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.
Quick Onboarding: This process has reduced the cost, and improved the efficiency of customers’ onboarding experience.
AML/KYC Compliance: Know your customer using video, can help KYC/AML compliance. Its processes, build trust and allow you to obey the strict regulations.
How does Video KYC Process Work?
Apart from the fact, that the video KYC process has similarities to the other traditional procedures that took place in the organizations. During the video KYC of your client, experts ask the customers to provide identity documents that are the proof of their identity required by the customer due diligence and KYC regulations.
Here is the video KYC process for customers:
Customer Registration on the Platform
After customers get register to the platform by filling in all the valid details, they are asked for their availability for the video call KYC verification and select the most feasible time slot for them.
Real-Time Video Identification Invite
There are some software out there that allows customers for instant end-to-end video identity verification. Some platforms invite their customers by sending them links via emails, directly to the browser, or even text messages. Customers see the links and join the call for e-KYC video verification.
Guidelines to the Customer by KYC Expert
While on a video call, the KYC expert conducts a comprehensive interview of the client to check the legitimacy and asks them for proof of their identity and some official documents.
These checks might include:
- Facial Recognition
- Validation of all official provided documents
- Checks the identity is tempered or photoshopped for security reasons.
Customer Gets Status Update
After finalizing all the processes of verification, customers get notified by the organizations whether they are successful in the KYC process or not.
General instructions for Video KYC Process
In order to use the video KYC process for identity verification for customers, some guidelines must have to follow by businesses.
- Record the video and capture screenshots of the customers during a video call.
- Took images while a customer is presenting identity documents.
- Compare the picture of the customer with at least one document that they provide for verification.
- You must be using any Face recognition technology.
In order to combat the growing risk of fraud and money laundering, these institutions need to deploy digitally advanced verification solutions. New problems require new solutions verification through video improves customer experience. The Video KYC process – is a quick and suitable process in which KYC expert tries to handle all the traditional methods of verification with digital or video verification.
However, with the rapid growth in digitization, the crime rate is also increases. The advancement in technology is not only helpful for organizations but also for scammers to target businesses for their illicit gains. This revolution requires an advanced solution that must be based on AI, and machine learning, and with almost 99.9% of accuracy.