As different industries mainly the financial and banking sectors move their number of services to digital platforms, in result, the need for online identification is much higher than ever. However, relying more on digital platforms means inviting significant cyber crimes. Cybercriminals and scammers are getting smarter with every passing day.
The KYC process plays an essential role in the secure onboarding of a customer. As technology is evolving day by day, we also need to be improved KYC solutions, and the answer is video identification or video KYC.
What is Video Identification?
Video identification is a process used to verify a customer’s identity with a fully secured method through video. This process requires a camera-enabled device could be a smartphone, tablet, computer, internet access, and identity documents.
With this process of identity verification, there are reduced chances of identity fraud of any type. It works as a shield for scammers and identity theft that are looking to attack.
How are Video KYC and Traditional KYC Differ From Each Other?
Know Your Customer (KYC) is generally described as the process for the confirmation of the identity of a customer and identifying any associated risk to the customer. It is an obligation for financial organizations and other businesses dealing with money. Some organizations are using a Customer Identification Program (CIP) in a traditional way at the time of customer onboarding.
Video KYC is more effective, safer, and faster than the manual process. It removes the paperwork for the overall verification process. Using video KYC, customers do not need to visit organizations physically to verify their identity documents.
- Real-time verification
- Get documents verified by submitting them digitally
- Verification results are flawless
- Record of verification
- May took up to weeks
- A client has to verify documents physically
- Chances for the errors
- There is no record of verification
How Does the Video KYC Process Work?
Video KYC is very close to the traditional KYC that includes face-to-face video calls, such as manually conducting the KYC verification process. In this process, customers are required to verify their identity document proofs by presenting them during video identification. Instead of the KYC process, video KYC allows customers to be verified while on a video call.
Video KYC verification process includes:
- The customer gets registered on the organization’s platform.
- The customer will go live with an expert in KYC.
- A healthy discussion just to confirm the identity.
- Customer presents their identity proofs to the expert.
- Documents get verified against any mitigation.
- Verify the face of the customer with provided documents.
- Once the process is done, results are sent to the concerned organization.
Is Video KYC Secure?
There is no doubt, that persistently performed video KYC processes are much safer than the on-site face-to-face identity verification being done. It is because of AI-driven and machine learning video identification, that automates document recognition.
Benefits of Video Identification
In the age of digitization, knowing your customers is important. Video identification plays a significant role in the onboarding process of customers. Using Video KYC, organizations need to verify their customers to maintain or achieve higher security. It is also time efficient.
Some benefits are listed following:
Fraud Elimination: Video verification plays a vital role against fraudsters, after mixing the process of human verification with AI-driven and machine learning software. This whole process assures reduced cyber risks.
Faster Onboarding Process: With video KYC, the verification process is much quicker than before, this process reduces onboarding costs, because customers don’t have to visit physically.
KYC/AML Regulations: Using this system, assures customers that they are complying with the KCY/AML regulations.
Improved Data Gathering: All the associations are recorded and stored for security.
Accessibility: Customers do not need to visit any organization’s branch or office. The whole onboarding process can be carried out at any time and anywhere.
Real-time verification: Customers get verified quicker than the traditional method.
Smooth and Guided Process: The process is fast and streamlined, providing a great experience for the client. The identification process is done in a short time.
However, with the rapid growth in digitization, the crime rate is also getting increased. The advancement in technology is not only helpful for organizations but also for scamsters 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.
Video KYC is mastering KCY-based identification worldwide like anything. It is one of the efficient and most effective methods of KYC identification. Video KYC providing with a secure verification process through a call of a safer and smooth onboarding for the customer, which has decreased the operational costs and improved the defense against cyber attacks.