In the last two years, companies have undergone significant transformations, with digitalization being the most significant change. As a response to the COVID-19 epidemic, businesses have switched their activities to the internet in order to take full advantage of the global market and reap the rewards. Financial organizations have made the biggest progress in terms of consumer onboarding.
As businesses go online, they must strike a balance between security and client satisfaction. Which method should be used to guarantee that KYC/AML needs are fulfilled while also improving the client experience? One option is video KYC, which allows for real-time client onboarding while also adjusting to changing regulatory requirements.
Difference Between Video KYC and Traditional KYC
The term “know your customer” refers to the process of confirming an individual’s identity and spotting any potential threats. Financial organizations and other sectors dealing with money must adhere to AML requirements. Customers’ identities have traditionally been verified by a physical customer identification mechanism which forced them to stop the procedure midway because it may take weeks.
The video identification is a modern twist to the old KYC, but it’s better, easier, and less expensive. It does away with paperwork in favor of significant outcomes, allowing the entire verification system to be finished more quickly. Clients are no more required to come to the organization and present their identification documents for account opening. This could be all done with a single click.
Increasing Need for Video KYC Solution
Video verification is a hot topic right now, but it is not an understatement to call it the driving force behind the identity verification market’s growth. In addition to making the validation operations more effective and cost-effective, the rising rate of identity theft necessitates the installation of a safe verification technique, and video validation is a good choice in this scenario.
One of the most pressing issues for businesses in today’s digital age is cybersecurity, and video verification is an effective way to resist fraudsters’ advanced methods of committing crimes. Video KYC of your client protects against a variety of identity frauds, including:
Because of the apparent form of deception, identity frauds are one of the most challenging to detect. To construct a believable persona, fraudsters blend actual information such as social security numbers with phony information. In the early phases of fraud, these counterfeits are difficult to detect, but with video KYC verification technologies, they can now be detected fast, avoiding further fraud.
As a part of the digital transition, scammers are becoming more skilled at deploying spoofing attacks to expose their malevolent intentions. To fool and bypass verification procedures, imposters utilize counterfeit or hacked identities. Because this form of documents and face spoofing assault is difficult to detect, relying solely on the program’s findings is not recommended. Spoofing attempts are detected in real-time using KYC video identification, which uses human-computer intelligence.
Deep fakes are movies generated with the help of a deep learning system. They’re designed to deceive technology and obtain access to personal data. Fraudsters can, for example, utilize deep fakes in facial authentication to bypass identification checks. Because these videos are so similar to real movies that it’s difficult to differentiate, more strong e-KYC video verification is needed.
Checklist for Effective Video KYC Service
Before choosing an AML solution, it is important to research its features and functionalities, only then the chosen service is the best fit for the company. Things to note while choosing video KYC for the business are:
As digitization has made services easily accessed across the globe. So, choose a video KYC that has global coverage. Not only this, but it also supports different languages and documents.
The KYC solution should minimize the overall KYC process costs while maintaining a great user experience.
3. Customized Solution
As different sectors have different requirements, a KYC should be customized according to the respective company’s requirements.
4. Enterprise-Grade Security
It should handle the client’s sensitive information with great security, avoiding any data breaches or identity thefts.
5. Omnichannel User Engagement
It should provide an omnichannel for client or user engagement and authentication which enhances client experience as they do not have to change channels for getting their identity verified.
Companies are attempting to improve their online solutions to match shifting client expectations and thrive in the digital age. Thus, video KYC is a popular practice in the authentication market. Companies can use this service to streamline their recruitment process and minimize KYC turnover time. It is estimated that video verification will be incorporated into a variety of businesses; in fact, many companies have already begun to use it for client onboarding. When combined with the real online document verification solution, it helps entities in fraud-free user onboarding.