The global pandemic forced businesses to shift their operations online to prevent the spread of the virus. The companies shifted to online verification methods for customer onboarding so that they can comply with social distancing measures. The digital way of conducting business is not going anywhere soon even after the pandemic because it has become a new normal. The introduction of video KYC verification solutions will attract the banking sector as well as other financial companies to adopt the new solution. The integration of these services also highlights the need for identity authentication to prevent fraud. Fortunately, the video-based KYC system will help with it.
Should there be an Expert in the Video Identification KYC Session?
Yes, the procedure requires a video verification KYC expert during the client identity verification session. The experts ask them a series of questions and check their government-generated documents. In the course of the interview, the professional candidate observes the body language of the client. It is necessary to detect any kind of deception and impersonation that the candidate might be attempting.
How Does the Video KYC Work?
There are different rules to follow for a company so that it can implement the video-based verification procedure. The steps are the following:
- Record a short video and take a selfie of the client
- Take an image of the identity records provided
- Cross-check the image provided by the customer with the image on other documents
- Conduct the same procedure on ID files and forms
- Employ the advanced AI backed face recognition technology
- The short recorded video should be saved with proper date and time stamps
- The AI technology will remove any doubts from the verification process
How is Video KYC an Ideal Solution for the Corporate World?
- Reducing Fraud Incidences
Reduction in fraud incidences is the most critical advantage of the video-based solution. The interviews are recorded and the AI technology scans the facial signature of the client. It is important to secure regular business operations through this method.
According to the experts, the video Know Your customer checklist solution brings advanced security to the system as compared with the other authentication procedures. The video-based solution has different checkmarks to detect a fraudulent identity.
- Hold The Id Verification Document
- Say a Certain Phrase
- Minimizing Money Laundering Incidents
The onboarding of genuine clients is a sure way to safeguard your business from money laundering attempts. The video KYC verification interviews along with comprehensive background checks on the clients ensure that the client is not present on any global watch lists. Fortunately, the video interview-based verification procedure has proved to be an ideal tool for minimizing money laundering. As per experts, the video check KYC is a strong security measure in the client onboarding procedure. Moreover, if companies use the technology along with other verification methods, they will have added layers of safety.
- Deducting Paperwork
The technology is AI-based so there is no need for paperwork. The days of long and arduous manual verification are over for the companies.
- Eliminating errors in the Outcome
As the manual verification procedures are no longer used because the artificial intelligence technology is put in place. The outcome received by the advanced technology is error-free and high in accuracy levels.
- Boosting Customer Experience
The KYC video identification procedure reduces the big struggle of the authentication process. So, there is no need to physically verify everything. In the past, the slow and time-consuming verification process was frustrating for the companies as well as the clients. The modern era demands advanced authentication tools for quick processing. The e-KYC video verification is fast and easy for applicants. It only requires the users to display their documents before a camera and be part of an interview. The client receives the final outcome on their electronic devices after the verification solution ends.
What is the Difference Between Video-based KYC and Traditional KYC?
The video KYC process is quick whereas the traditional KYC procedure is time-consuming. The video KYC solution is error-free but the traditional method can have human error. The traditional method does not show proof of authentication. However, the video-based method does not give proof.
Finally, the video KYC professional leads the interview of the customer and authenticates their identity. In reality, the identity check is the compulsory procedure that each financial company has to fulfil while onboarding their customers. The transformation of the digital services to the clients should have advanced authentication procedures to decrease the incidences of money laundering and fraud attempts. The latest technology helps secure the business databases and maintains the positive brand image of the company. Fortunately, the existing technology in the company is easily compatible with the instant verification solution.