Every company is the target of cybercriminals in this age of digitization. What, however, are businesses doing in reality to stop these expanding fraudulent activities? Without any doubt, technology is still developing and scams will continue. Organizations only need to take the proper action to improve corporate operations and cybersecurity processes. Video KYC is a promising solution to this issue. To learn more about video checks, let’s dive into the blog.
Video KYC Solution at a Glance
The term video KYC refers to an efficient but automated client due diligence approach to validate an identity. This procedure involves digital KYC through a video call for seamless client onboarding. Businesses may speed up and digitize the KYC process with video KYC using OCR data extraction techniques.
Due to the significant customer request for digital ways to avoid physical contact—particularly since the pandemic outbreak—the shift towards video-based verification processes and alternatives is developing globally. This transformation has already shown to be beneficial to many industries enabling contactless client onboarding and lowering operational costs.
How Does Video Verification Process Work?
The video KYC process enables omnichannel customer consultations that use video calls for both face and document authentication.
Below are the steps on how video checks authenticate an individual.
- The end user must sign up for a specific platform by providing their credentials.
- The consumer and the KYC specialist engage in a live video call.
- An end-user interview is conducted by a KYC specialist.
- During a video call, the customer shows the KYC specialist their official identity documents.
- The software examines documents for signs of tampering or forgery.
- It then matches the person’s face to the one in the identity documents.
- Validation results are given to the necessary organization or end-user.
Perks of Employing Video KYC
The following are the benefits of video KYC services:
- With the aid of AI and cognitive technologies, the onboarding of clients becomes incredibly quick, effective, and productive.
- By combining real-time face identification, machine learning, as well as OCR (Optical Character Recognition), KYC video identification enables accurate consumer confirmation.
- The interactions that take place in the video verification are all recorded for later review.
- Video KYC substantially cuts the turnaround time to just a few minutes, reducing customer onboarding costs by 90%.
- Manual paperwork, which is frequently cumbersome and susceptible to human error, is what a firm can avoid using video checks.
- Video KYC improves organizations’ security protocols.
Use Cases of Video Verification
Given that video KYC can reduce the cost of enrolling consumers, it is a tremendous benefit for financial institutions. All financial sector businesses use video-based KYC, including banks and NBFCs, insurance firms stockbrokers, etc.
Here is a roundup of some of the most fascinating applications for video KYC.
- Re-KYC is a major issue in the trading sector. After opening their accounts, people frequently forget about them, and re-KYC is necessary when their desire in trading is rekindled or if they have spare time. In this case, a major barrier to renewal is physical KYC; however, video checks help to get beyond this obstacle.
- Using video KYC makes it easier to follow rules. Fortunately, WebCam may be used to accomplish in-person verification for entities that are subject to laws. Similarly, entities under regulation can make use of video-based client identification systems and discourage traditional customer authentication procedures.
- In some other digital environments, onboarding organizations and corporations are now a laborious process for payment gateways. Due to video checks, which eliminate friction, payment gateways can now onboard small and medium-sized businesses in no time rather than days.
- Contract employees are continuously being onboarded by the logistics industry. Either immediately or with the aid of staffing firms, it makes this possible.
Therefore, the entire onboarding process emerges as the main challenge in both situations, particularly when the organization is in a development stage and needs to meet changing client demands to remain competitive in this environment. The onboarding process is greatly accelerated by the reliability, and effectiveness of video KYC.
The second stage that businesses of all types must complete for the purpose of easing the client onboarding process is video verification, which comes after online KYC. In addition to providing a frictionless client authentication procedure, the use of video KYC aids in the identification and prevention of counterfeiting, chargebacks, identity theft, financing of terrorism, and other illicit activities. Additionally, in order to improve their security standards, businesses must also implement the KYC process called “Know Your Customer’s Customer” (KYCC). Consequently, robust video checks aid in reaping unforeseen benefits and efficiencies in light of the financial industry’s enormous expansion.