What is Video KYC?
Video KYC is a face-to-face online identity verification system through which organizations execute the customer verification process through a live video call supported by a KYC expert.
The KYC expert verifies the identity and ID documents of the end user via live call. After the verification, the customer is required to provide ID documents to the KYC expert after verification of his/her credentials.
How Video KYC works?
- It begins with the customer filling the registration form on the website.
- The information is then delivered through an API call to the KYCC services provider.
- Furthermore, a trained expert will contact the customer through a live video call. Whether the customer is using a smartphone or laptop he/she is guided through a perfectly designed online video chat verification process.
- The customer is then prompted to provide government-issued ID documents (passport, driver’s license, or national ID).
- After that, the customer is prompted to display both sides of the ID documents when necessary and also tilt the ID document in front of the camera to verify the holographic elements.
- A highly trained staff capable of analyzing human and body language determines the authenticity of the ID documents.
- Facial verification technology uses a 3D liveness detection technique to perform identification and comparison of faces with ID documents.
- Upon successful verification of the user’s ID documents and identity, they will be then sent back to the site with the verification status.
- All video chat identifications are recorded and secured for further security measures.
Impact of Video KYC on Banking
The banking and financial sectors are under the stern supervision of regulatory bodies. For all financial organizations, it has been made a compulsion to authenticate the end-user with KYC. Online video chat verification is an efficient solution to authenticate end-users in real-time and to fulfill KYC and AML regulations.
Impact of Video KYC on Crypto Industry
Digital thieves are using innovative ways to defy the online identification process. They use stolen identities to carry out malicious activities. Video KYC acts as a deterrent that secures the system from the activities of corrupt entities. The cryptocurrency providers are required to authenticate customers before onboarding. Online businesses and ICO (Initial Coin Offering) providers can perform a comprehensive Know Your Customer process online with video KYC.
Benefits of Video KYC for Fintech Businesses
Ensure compliance for fintech businesses by keeping a balanced approach between security and customer experience for fintech businesses. Video KYC provides the following benefits for fintech businesses:
- Cost-Effective and Time-Saving: Video KYC is a fast and inexpensive solution for fintech businesses to perform enhanced digital identity verification of their users.
- Enhanced Security: Video KYC defends the system against stolen identities and documents. Video KYC analyzes the human body language and authenticates the data via a live call to avoid identity scams.
- KYC Compliance: Video KYC assists fintech businesses to comply with the requirements of regulatory bodies to deter financial risks.
Benefits of Deploying Video KYC System
There are several benefits for organizations implementing video-based KYC system:
- Adequate Elimination of Fraud: The most important benefit of video-based KYC is the elimination of fraud and the protection of business activities. Using artificial intelligence and face recognition methods this mechanism protects their business concerns and minimizes identity fraud importantly.
- Eradication of Money Laundering Activities: Video KYC validates whether the end-user is present in the high-risk entities or adverse media lists by performing facial and document verification checks via a live call.
- Prevention of Human Errors: Integrating artificial intelligence and 3D liveness detection techniques to assist financial institutes in the fight against various identity frauds. Artificial intelligence-powered video KYC solutions help identify sophisticated frauds which might be overlooked by human experts.
- Better Customer Experience: It greatly reduces the extensive struggle required for the verification process including drop-offs that converge at various steps of the verification procedures. Customers can easily verify their identity by presenting their ID documents and answering a few questions during the online video chat with KYC experts.
- Quicker Identity Authentication: Replacement of customer’s physical visitation for verification with Video chat KYC real-time remote verification makes the process fast.
Businesses must deploy state-of-the-art digital verification solutions to get rid of growing fraud risks and money laundering. Video Verification services is a more secure and cost-effective system than other verification systems. It is a reliable solution for achieving a clear customer base and complying with KYC and AML regulations.