Identity verification is critical in this age of global digitalization. A Video KYC solution can be a critical component of consumer onboarding. Organizations that require client identification can ensure stronger security by adopting such a service. Their consumers are guided throughout the verification process, which results in committing fewer errors that can occur with self-validation. It also cuts a significant amount of time.

What is a video KYC Process?

The demand for client identification is growing, and in times of the Covid-19 outbreak, it has become a necessity for many organizations to shift their operations online. As more client assistance is provided online, the desire for video KYC systems has skyrocketed. This is specifically true for companies in the financial sector. Because there are severe fines for not complying with rules and regulations related to the risks of money laundering.

Video KYC entails face-to-face confirmation, in which a verification expert validates the client’s identity using the documents required for the identification process.  As a result, it enables the organization to improve its security while also getting to know future consumers.

Organizations can know about their clients better and learn important details about them by implementing a video KYC solution. As a consequence, they can cooperate without the concern of clients turning out to be scammers.  Businesses that use video KYC can also determine who they want to get in business with. Moreover, they can also decide which customers to monitor continuously based on their risk profile. 

Major Difference Between Video KYC and Traditional KYC

KYC services were handled manually prior to the telecom internet age. This majorly affected banking institutions. For instance, while beginning a new customer relationship, banks asked customers to complete out papers, scan identification documents, and wait for their response. Some organizations still do client verification in the conventional (manual) manner, although an increasing number of them employ online video KYC solutions.  

Video verification is far more secure than old methods, and it enables better identification of possible fraud. Clients do not have to physically visit the organizations in order to avail the services of a company.

They can do it online, without exiting their home or workplace. Video KYC verification also saves time because the overall procedure takes only a few moments and may produce relatively instant results. Video KYC is also far more effective than traditional KYC since it is assisted by computer algorithms that can frequently observe more than the naked eye.  

Businesses that Need Video KYC Solutions

Financial firms, crypto exchanges, and all other businesses are required to authenticate their clients under legislation that exists in various countries throughout the world. This is why they are beginning to embrace video KYC solutions, which enable them to know their clients in real-time while still adhering to current rules.

The crypto sector is actively relying on verification solutions. Due to increasing restrictions, cryptocurrency exchanges are adopting KYC to ensure that they, like other organizations, are not vulnerable to damages done by criminals or non-compliance with formal rules.

Knowing your consumer becomes useful in many other organizations that have online business profiles and even on social platforms.  All organizations that might suffer any form of damage, whether material, economic, or reputational, can perform user validations.

KYC Rules and Regulations

A large number of countries are implementing obligatory KYC in banks and financial organizations. This is connected to AML rules, i.e. money laundering prevention. However, KYC standards differ from one jurisdiction to the next. Even inside the European Union, which imposes regulations based on its directives, such as 5AML or the recent 6AML, these restrictions are not standard among member countries.

Benefits of Implementing a Video KYC Solution

Both organizations and their clients gain from KYC. Enhanced security measures benefit organizations and make them less vulnerable to fraud and tax evasion.

Clients may now have access to digital banking, they can make payments, and purchase items without exiting their homes by fulfilling all of the verification requirements. They may also invest their savings wherever they desire, as long as they have an internet connection.

Because the procedure is significantly faster and more accurate than manual identification verification, both sides save time. Furthermore, there is no need to schedule a meeting at a certain time and location because everything can be done digitally anytime. Another degree of protection is the option to verify clients for sanctions and restrictions to ensure that they are not politically exposed individuals (PEP).

Conclusion 

a complete video KYC solution customized to the demands of organizations that must comply with this procedure.  All video identification processes take place under European and global standards.

Skilled professionals perform the video check service effectively and safely. Identity verification organizations may be certain that the entire procedure will be in accordance with legislation and that their potential consumers will not be a danger to the company. 

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