With social distancing becoming a need during the pandemic, an increasing number of businesses have begun to onboard consumers. They conduct customer verifications via digital methods, and it is expected that this will continue for some time. With the advent of a video based kyc approach, this acceleration towards digital adoption has a projection to accelerate even more in the banking and financial industry. They verify identities by video call KYC.
Businesses in the banking sector are introducing intriguing new digital offerings to their clients. With the launch of these services, there is a greater demand for online identity verification. It can satisfy customers after connecting the systems with advanced verification methods like video-KYC. In Video call or KYC verification, a financial institution’s KYC expert or person verifies a customer’s identification. He or she also double-checks the documents shown during the live video chat ID verification. After the customer’s credentials go through verification, he has to show his government-issued identification documents to the company’s representative during the video conference. The framework for this new authentication method has started to build major banking and mobile wallet businesses.
Who is Responsible for Performing Video KYC with Clients?
Customers have a connection to a trained KYC expert via video KYC, who performs the interview and wants them to protect their identity after presenting a government-issued identification document as proof of identification. Throughout the process, the KYC expert asks the customer questions and watches their behavior and body language to guarantee that the person in front of the camera is not fake.
The Benefits of Using a Video KYC Process
Using a video-based client identification system has a few advantages for businesses.
One of the really important advantages of KYC video verification is its ability to effectively prevent fraud. Companies may drastically minimize identity fraud instances and protect their operations while using live video interviews, AI, and facial recognition.
Prevention of Money Laundering
Your firm will also be protected from money launderers if you only accept reputable consumers. With video KYC interviews, you can conduct full background checks on your clients to ensure that they are not on any sanctions or watch lists. For banks and enterprises, a combination of video KYC as well as other AI-based verification technologies can prove to be an unbeatable risk shield.
Reduction of Paperwork
Companies may say goodbye to expensive paperwork and lengthy manual processes now that the entire verification process is done online.
Eradication of Human Errors
The rate of risk of human errors lowers thanks to sophisticated technologies like AI and liveness detection.
With a rapid and painless client verification procedure, video KYC helps to reduce the drop-offs that previous authentication techniques couldn’t perform.
Improved customer service
KYC through online video identification eliminates the most difficult aspects of the verification procedure, such as drop-offs at various stages of the physical verification process. As evidenced by the statistics below, a slow onboarding process might frustrate new clients, causing them to abandon the process.
These figures demonstrate why speedy online verification methods are so important. Customers may simply verify their identity with a video kyc solutions. They exhibited their identification documents to the camera and addressed a few pertinent questions posed by the KYC professional conducting the interview. After collecting the user’s information he or she gets validated through the process.
Faster Identity Verification
Customers’ physical visits for verification go through with customer onboarding video authentications using the video KYC approach. As a result of remote verifications, the process duration is fast and without any delays.
The New Normal: Video KYC
(IRDAI) has permitted insurance businesses to issue policies online because everything is going to digital platforms. However, all organizations use video KYC prior to issuing.
Insurers use digital means to authenticate consumer signatures on papers. The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) recently approved the use of video KYC by banks and other financial institutions for verification. Distributors can now employ video KYC to onboard consumers to the National Pension System, thanks to the Pension Fund Regulatory and Development Authority (PFRDA).
The Bottom Line
So, Identity verification is a criterion that every bank or financial institution must meet when onboarding new customers. With the introduction of new digital services to clients, these institutions must implement technologically sophisticated verification solutions. It combats the rising risk of financial fraud. It can assist them in keeping their operations safe and their consumers satisfied. Video KYC solution provides increased security as well as a speedy verification approach that is suitable for their onboarding processes.