The Know Your Customer Rule 2090 put forth by the U.S. Congress has obliged businesses to verify their customers’ identities. Therefore, the room around the industries has started to shrink. This is making onboarding tough and tricky for businesses as they are unable to keep track of every customer through not-so-accurate processes.
To combat this issue, businesses are moving towards digitally emerging services like video KYC verification. The major governing power behind this is the year 2020 as it has bought major shifts. To be a part of the speedy process, businesses are capturing more clientele base while going online. Therefore, video KYC solutions help businesses ensure authentic and secure customer onboarding as well as KYC/AML compliance.
Video Verification System – the What and How
An annual report by The Identity Theft Research Center (ITRC) show that 2021 experience over 1862 data compromises. This has risen the need for video services to enable businesses to carry out facial identification and ensure data privacy. The process comprises a video KYC expert and AI-based technology.
The role that Technology Plays
The complete verification procedure relies on technology. Simply put, artificial intelligence services run scans to make a face map and identify customers. So much so, the liveness of customers is also detected by examining the surroundings. Also, the technology authenticates the documents by making sure they are original and there are no signs of forgery. After verification finishes, the results are sent to the back office through an API call.
The role that Video KYC Expert Plays
The customers are ask to fill in a form in the initial stage of registration. Next on, the video KYC expert schedules a live call. Businesses can onboard customers remotely by examining their liveness. However, before putting any of this into practice, experts take consent. Later on, they guide customers through a step-by-step process.
In the next stage, KYC video experts ask for the documents, and they present them in front of their devices’ cameras. Here, the require documents can be an ID card, passport, or license. During scanning, experts validate the holograms, watermarks, signatures, and they identify if there are some alterations done. Furthermore, their role does not end here, with video KYC, they not only verify documents but also the liveness.
Why Video KYC Verification?
If the businesses think going digital will solve all their problems then that’s not the case. Cybercriminals are now innovative, they purchase identities from the dark web and fool the traditional identification means. However, with video identification, industries can reduce operational costs by up to 90%. Customers are always in a hurry and need instant results and if that’s not provide they leave the platform. According to FinExtra, 40% of the customers abandon the onboarding process and leave because it takes too long. Hence, video check is a high-ranking phenomenon as it is governing massive changes in the identification industry.
The Video verification process is not only less time taking but also cost-effective. Security of the customers is among the major concerns and e-KYC video verification is the hold-on-to solution. Why? Because they combat fraudsters’ tricks and provide several more benefits.
Reduces KYC Expenditures
Thanks to video KYC solutions, verification can be done remotely hence the businesses do not need to look for compatible staff and build a team. The cost for KYC is reduce as there is no need to pay for fuel or any additional charges. Also, the process is seamless and quick. Companies can onboard more and more clients after some minutes of verification. Also, customers don’t have to form queues and wait for their turn rather they can capture a video by simply sitting on their couches.
Robust and Seamless Onboarding
Some industries like e-commerce payment systems have a gigantic user base with customers from all sectors. So to verify each customer in face-to-face interaction can take long decades. But, the video KYC verification has a lot to offer. Either customer can schedule a meeting for the video call or simply upload their real-time video onto the site.
High-speed KYC Completion
No need to look for photocopiers and get multiple sets of documents for submission. Video KYC has reduce the hassle and time taken to complete the verification from weeks to minutes. Hence, this has created a win-win situation as the onboarding platforms can take more requests in less time span.
Zero Compromise Policy on Security and Compliance
To be among the preferred and reliable businesses, take hold of technologies that won’t let you lag behind. Video KYC solution not only verifies the face but also identifies the geo-location, liveness, and documents. This ensures compliance with KYC and privacy protection all the way.
