A Brief Introduction to Video-Based KYC Authentication - How It Works, Features & Fruitful Benefits

The video-based KYC authentication or video customer identification process launched by the RBI (Reserve Bank of India) for digital wallet providers, financial institutions, Non-banking financial companies (NBFCS) & other sectors regulated by the central banks. It is the consent-based alternate method of KYC in which customers can open new accounts via facial recognition and video-recording apps. However, the banks can get benefits from the artificial operated digital KYC to prevent money-laundering cases or fraud actions.

How Video KYC In Banking Works?

The working model of Video KYC in banking relies on face-matching tools and the latest technologies to ensure that the person who has gone through the process is genuine or belongs to the country. The step-by-step procedure to perform the bank grade digital KYC is given below.

●      The financial entity can coordinate with the customer to know his suitable timing to start the video-conference or face interview.

● Once the customer gets online with documents (Pan Card, Driving Licence, Aadhar Card) in the app through the smartphone, the bank employee also gets available with his app or website simultaneously.

● Remember, this KYC authentication is entirely done by the video-recording that means the documents that customers will show to the bank concerned person are recorded in the one footage. The bank agent may ask a few questions while making the account in video KYC that will be treated as a proof which one can’t change in the future.

● Moreover, the bank provides an interface to the users in which they can fill the personal instruction after reading the declaration and pop-up messages. Make sure the method of filling the application may vary from bank-to-bank. 

● There is no need to scan the photo and signature to submit the authorized officer of the bank though they directly take the digital signature from you. Even it captures the live photo along with detecting your live location to establish the identity in video-based digital KYC.

Salient Features of Video KYC in Artificial Intelligence Style 

There is an extensive range of features specially designed for the KYC AI that are mentioned below:

Real-Time Verification

The video customer identification system allows the extraction of details from ID cards in the real-time method. In this case, customers are free from the mess of filling permanent account numbers manually again & again.

How to Submit a Pan Card in Digital KYC?

●  Open the video chat and hold the PAN Card properly with both the hands. The official person will take the card details in the video to assure from the issuing authority that the details are correct.

● On the other hand, the geotagging is used to trace the live location of the individual, which demonstrates the person is physically present in India and ready for the digital KYC.

●  The date and time stamping is done by the banks to maintain the records carefully.

How to Submit the Aadhar Card in E-KYC Authentication?

The process of Aadhar submission is similar to the PAN card verification in digital KYC. Still, it can be OTP based, and even individuals can schedule a time & date to start the onboarding process based on their personal choice. Some entities may authenticate the Aadhar card offline that means there is a wide array of ways to verify the customer identity.

In-Person Portal Verification

The bank-grade digital KYC offers in-person portal verification systems that are used to approve the final KYC by the agents. The technique is far better than traditional bank opening account systems as there is no pressure of managing the bunch of files.

End-to-End Security

The end-to-end encryption is practiced while operating the KYC in banking that ensures that no third-party can steal the recorded data which has been sent by the users. All the information is encrypted and securely saved in the database servers or cloud by the banks to manage the further retrieval process. 

Benefits of KYC Identification

●        End up the cyber frauds.

●        100% application accuracy.

●        70% reduction in back-office overhead expenses.

In the Nutshell

Video KYC onboarding solution is one of the powerful ways to wind up the identification process in minutes. Are you crazy to know more about digital KYC and how it enhances the productivity of Fintech Businesses? Explore the Signzy to get the instant automated back-office operation services using AI technology.