Video KYC has now
come up as a new normal in the identity verification process. It is now almost
grooving in this digital space for online verification of customers. Since KYC
requirements are now getting more stringent than ever, it has now become a major
norm for business entities to follow-up with it. The identity verification of
customers can be done in different forms – this can be either done online or
via biometric authentication methods. However, video KYC process tops
the list today, especially at the time of this pandemic.
Different
industries, including banking sector and Fintech, are constantly in need of
this digital customer identity verification process. Among the all, video
KYC solution works the best for them, having the KYC expert, technology to
get the identity of the person verified remotely.
What does KYC expert do in video KYC process?
A person has to fill
the KYC form and soon after that, the KYC expert is going to connect with a
person to carry out this remote verification process further. The expert person
is going to guide the one throughout this process and collects all the required
data. This expert will even ask you to show all your identity and address
proofs in the camera to ensure there’s no scam. These proofs could be your driving
license, Aadhar card, Passport, and Voter card.
How does technology help in the KYC process?
It indeed plays a
major role. While the KYC ID check process, AI-powered facial recognition is at
the place too. In fact, the detection feature of technology ensures that
everything is going fine. All sort of spoofing things can be easily caught by
the expert via technology. So, yes, technology plays a vital and big role in
the video-based KYC process.
Regulatory framework of the online KYC process
The regulatory
infrastructure has wholly revamped this video-based KYC process for financial
institutes and banks in America and all over the world. The best part about it
is the person does not have to go through the paper-based process anymore,
since one is allowed to do video call verification mechanisms. In fact, the RBI
has also added some amendments in the existing guidelines.
Video id KYC has become a vital part when it happens to onboarding new customers,
under the prevention of money laundering act 2005. It has now become vital for
every bank, Fintech to follow up with the KYC norms.
Top benefits of Video KYC process –
Following are some
of the top benefits of this video-based KYC process:
·
Remote
verification
·
Paperless
verification
·
Secure
customer boarding
·
It is a
cost-effective method
Video-based KYC has come up as relief in
coronavirus time
This COVID-19 has
created so much hype since the time it outspread. There have been major
business transformations seen from then to now. The increasing financial crimes
and digital frauds at this time is calling out for more effective identity
check methods. However, banks and other financial firms have got so much relief
with this effective video KYC process.
Wrapping It Up –
Video KYC has come up as a convenient and swift solution in recent times. It is a quick and effective process that helps the banking industry and Fintech businesses in attaining clean customer base with secure and easy customer acquisition.
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