Things You Must Know About Video KYC

Due to the coronavirus outspread; it has now been more than seven months since the whole world is struggling hard to fight against it. Earlier in January 2020, the RBI has released the notification on Video Based Digital KYC, allowing all the banks, and other financial institutes to use video KYC Verification methods to onboard the new customers from now onwards. 

From then to now, several banks have been using this Video KYC. No wonders, it's working really great and giving some great results, with significant reductions in onboarding expenses, increases in competence, and customer acquisition. 

This smart integration has, in fact, made millions of people to open their new bank accounts from the comfort of their homes only, digitally. It wouldn’t be wrong to say that in need of this hour, this Video KYC Verification method is not any less than a great coincidence.

In fact, right after seeing the success of this video KYC process in the banking and financial sector, both SEBI and IRDAI have introduced provisions in the form of VIPV and VBIP. 

But, due to the novel nature of video-based onboarding, many things still abound regarding the execution and operational aspects of this video KYC process. 

Video KYC Verification Process

Well, most commonly, it is preceded by Aadhar based verification digitally, involving capturing an image of the customer and verifying his or her Aadhar card online. However, this has come up as somewhat impractical. The new video-based KYC process envisages a video call between a representative and the customer, who is about to be onboard.

There are many facts associated with this Video ID KYC method that you guys must be somewhat aware of.

• Only banks can do online Aadhaar authentication 

• Representatives must be appropriately trained to carry out video-based KYC method

• The video call must be triggered by the financial institution’s domain  

• There must be concurrent audit 

• The overall experience must be both, secure and seamless

• Banks and other financial institutes can use technologies like artificial intelligence and machine learning to improve the overall video based KYC process

Who performs video KYC with customers?

In video KYC, the customers are coupled with a qualified KYC expert, who interrogates and asks them to authenticate their identity by screening an administration-issued identity document as proof of their identity. All through the process, the KYC professional asks questions from the customer and observes their actions and body language as well to make sure that the person in front of the camera is not an impersonator or fraud.

Integrate a robust and trusted onboarding solution today 

Now that you got to know all the perks this effective video KYC verification is offering, it is the time to integrate it into your business and see what it can do for you!

If you wish to onboard faster and make everything else go smoother with video KYC solution at great prices, feel free to have words with Signzy professionals.

Potential of AI in KYC in 2020

 Verifying a person’s identity seems simple, but despite its simplicity, KYC has become one of the most time-consuming, confusing, complex, and costly processes for banks and financial institutions.

As of today, AML costs for financial institutions are sky-rocketing $25.3 billion. Of course, KYC (Know Your Customer) is a subset of this, but despite against staffing investments, KYC workflows were falling short. With this, business growth and customer expectations were also suffering a lot because of these lengthy and time-consuming KYC processes. Officials have to sort through volumes of data and documents to monitor customers and their identity proofs. But, it was indeed time-taking and tedious too. According to experts, it is anticipated that 25% of applications are abandoned due to lengthy KYC friction.

 

These figures are quite staggering and more than overwhelming; there is a way to reduce risk and add greater efficiency. But, it’s no longer a case anymore, especially after the integration of AI technology. Today KYC using AI and automation are becoming the go-to options to solve-out the troubles of modern-day KYC and AML.

 

Applying AI (Artificial Intelligence) to KYC (Know Your Customer)

 

The integration of AI in KYC is saving banks with an estimated £2.7 billion per year. 

 

Today, process, automation, and IT are a significant part of it, and so is AI (Artificial Intelligence). But when building this AI strategy for KYC, it is important to know what to expect and how to evaluate to see if the desired goals are achieved or not.  

 

If you someone who wishes to reap these profits in your finance-related business, then it would be best to avail some professional assistance for AI in KYC. No wonders, it has so much to offer to everyone and indeed offering some great benefits.

 

How is AI Driving changes in KYC Today?

 

Well, the KYC (Know Your Customer) arena is facing some of the driving changes that must be taken into consideration before implementing it. Some of them are:

Now there is more regulatory scrutiny, which is having more punitive outcomes these days.

There are ever-evolving regulations like 4AMLD, FATCA, MAS that vary extensively across the globe.

The KYC documents are retained for a longer time, and as a result, it works great in document management.

 

These are some of the ways in which AI is making its big impact in the KYC process today! It would not be wrong to say – this AI in KYC technology is working for the good of people.

 

Conclusion

 

Today is a time when artificial intelligence is rapidly approaching a place where it is working great for future growth and addressing all the KYC challenges. When integrated and applied rightly and effectively, it gives banks and financial institutions the ability to piles of data, and keep up with all the rules, and offers a user-friendly onboarding experience.