What is Video KYC, and how is it Beneficial for Customers and Businesses?

 

In the pandemic, social distancing has become a necessity. That’s why the majority of companies have started the onboarding process digitally. This trend is here to stay even after the pandemic. As the world is trying hard to get out of the pandemic, digital adoption is also accelerating. Video KYC for customer verification is a great way to get the verification done from home.

With the new digital services, the financial sector is helping customers to get the best services. Banks and other financial entities are integrating systems with high-tech verification in the form of video KYC.

Who performs video KYC?

A trained KYC expert performs video KYC. Customer is connected to the expert who asks them to verify their identity and show identity proofs issued by the government. The expert observes the body language and behavior of the customer. The user is asked to switch on the front camera to ensure he is not an impersonator.

Guidelines for Video KYC

• Record video and take the live photo of the customer
• Capture images of the identity documents
• Match the customer’s photo with the identity document.  
• Make use of artificial intelligence and face recognition technology
• Record video and save securely with date/time stamp

Advantages of implementing video KYC system

Fraud prevention

Video KYC is a great way to prevent fraud. With the usage of AI and facial recognition, live interview, financial institutions can curb fraud and secure their operations significantly. 

Prevent money laundering

Money laundering is a huge problem for financial entities. When you board legitimate customers, the risk of money laundering reduces significantly. With Video KYC Verification for American audience, it is now possible to perform background checks on your clients to ensure they are not on any watch lists. Video KYC is an exceptional tool that helps banks to onboard “clean” customers. 

Reduced paperwork

Video KYC takes off the stress from the employees of financial institutes. Since the video KYC process is performed digitally, employees don’t need to perform hefty paperwork. Employees have time to perform other critical functions that help in the growth of the organization.

Eliminate human errors

Humans make errors, but machines don’t. Advanced technologies such as artificial intelligence and liveness detection eliminate the scope of error. One can expect almost 100% correct results.

Reduction in Drop-off 

The traditional way of performing background checks involved customers be present physically at the facility. They have to present certain documents and come several times to the facility. Many customers don’t have that much time; they just drop-off. Video KYC provides a smooth and error-free customer verification process that helps in reducing the drop-offs. It’s a favorable thing for all financial institutions.  

Enhanced customer experience

Customers want a smooth and hassle-free experience. They don’t want to visit the premises physically. Video KYC eliminates the need to physically visit the financial body. Customers can perform the video KYC from anywhere and enjoy a trouble-free onboarding experience.

Final Words

Video KYC for Customer Verification is beneficial for both customers and businesses. Customers get the best experience, and businesses save money, time, and resources.

 

 

Everything You Need To Know About Aadhaar-Based Video-KYC Process To Establish Identity In Banks

It was 9th January 2020, when the RBI (Reserve Bank of India) approved Aadhar based video authentication process as an alternative to the e-KYC process. Supreme Court’s judgment on this method and its use by financial and other non-financial institutions has now pushed the manual verification process at the bay.

According to one recent report, it’s been noted that there is an upturn of 40% in the new customer acquisition since this KYC process has come to play.

RBI (Reserve Bank Of India) has updated its rules and regulations for e-KYC under the prevention of money laundering act, 2005. Did you know video KYC is recommended with Apple FaceTime or Google Duo? Yes, it is true! In fact, India and America is now the official first few countries to roll out the video KYC (Know Your Customer) process for financial and other non-financial institutions.

Lately, after realizing the whole COVID-19 situations, many banks have even launched their own video KYC facility, to make a sign up new customers with ease and efficiency.

Since now there is approval on the use of video KYC process, businesses irrespective of its domain and size, can now use the digital modes of identification and can use these technologically advances to onboard their new customers and to ensure they are being completely compliant with government rules and regulation.

In this write-up, we will outline the less-known yet important things you must know before implementing this smart and agile video id KYC process.

Video KYC Process

Well, this video KYC process has come up as an alternative to a full in-person KYC process. This is the process that customers are required to complete before they avail the services of banking institutions, such as getting loans and new account openings. Bur, in this video id KYC process, customers are still required to submit their identity plus address process to avail continued and uninterrupted services. 

The best part about this addition is – the newly permitted KYC process has now replaced the conventional KYC (Know Your Customer) process completely, with customers no longer need to follow and go to the official buildings to submit their documents in-person.

As almost each one of us is aware of the fact that identity theft is on the steep rise today, across the globe. At these impulsive times, video id KYC is extensively used to eliminate and cut all money laundering related and other prohibited activities. Earlier, KYC was a bit costly affair to businesses as they have to put up with the traveling expenses of the agents for the purpose of getting verified.

With the online KYC (Know Your Customer) process at disposal, businesses and people can’t just save bucks on costs but can also fasten the complete on-boarding process, saving them time and reducing the customer drop-outs by almost 30%.

Digital Video KYC Identification Process

Typically, the digital video-based KYC identification process has the below-mentioned steps included in it –

1. A customer has to visit the organization’s website and submit the application to get KYC done online.
2. Via a client portal, a customer has to enter his personal information like contact number, email address, residential information.
3.   A mobile number verification is done then by sending an OTP to the email address submitted by the person.
4. Once the email address and mobile number is verified, the customer has to submit his or her Aadhar number.
5. An online video call can be initiated anytime, via a link, or can be scheduled by a person itself, based on his time slot preference.
6.  An IP address of the person is checked to ensure there’s nothing wrong till now.
7. An assigned agent is then going to cross-check all the details submitted by an applicant and verify it for further decision making.
8. The agent can ask a person to show his proofs at any given time, and an OCR recognition match is done to ensure everything is moving in the right direction.
9. At any given point of time, the photograph of a person will be captured to match it with photos on ID proofs further.
10. Based on the overall online video call thing, the agent is going to decide whether he will accept the application or reject it.

      Well, this is how the whole video id KYC process takes place. It is just a matter of a few minutes, and the person will get verified from the comfort of their homes only. So, it won’t be wrong at all to say that this KYC process has come up as a great addition to society.

Why Is Proof Of Address Verification Process Necessary In Today’s Digital Times

Too often, the legitimacy of proof of address verification is indistinctly defined; still, it is one of the basic requirements to manage charge back, without the threat of fraudsters and improve customer experience.

Whenever an individual wants to make an account or make any sort of transaction, there’s always a need to submit documents of proof of identity and proof of address. Generally, financial and many other non-financial institutes ask for these commonly requested documents to check a person’s identity and to comply with government norms.

But, it is not as simple as it may sound to you. Over recent years, the falsification of proof of address has come up as a major concern in India. Such cases are on the rise today. However, in order to put such these things aside, there have been many changes made by the administration and RBI (Reserve Bank Of India). Today, there are certain documents that can be accepted as proof of address verification, and surprisingly it is resulting in a big drop in such issues.

Documents Those Are Acceptable For Address Verification

Based on a certain type of business and the jurisdiction, there might be some changes as to what can be accepted as a document of address verification and what not.

Common types of documents for the proof of address verification

In this, we are highlighting some of the most common examples a business and financial institution can accept as valid proof of address.

·     Utility bill – well, the utility bill can be for anything, be it for electricity, gas, water, internet, but if it should be considered only if it is older than three or four months.

·       Bank statement – A proper, detailed bank statement, along with the name of a person and date of issue, can also be considered as a proof of address verification. However, in this case, too, a bank statement shouldn’t be older than three months or more.

·        Credit card – a credit card statement with your name and address mentioned on it.

·        House purchase deed – it can also work as a valid proof for the address verification purpose.

·     Letter from a known and recognized authority or public branch – this can be any government-issued correspondence.

·        Employer’s certificate – even this works as a great residence proof many times.

·      Lease agreement – a proper lease agreement, having signatures of landlord and tenant also works as great address proof for verification.

Different financial institutes, insurers, management firms, and other non-financial institutes can ask you for any of these above-mentioned documents, depending on their need. Nevertheless, there are a few more options you must know about.

Other Proof Of Address Examples

Well, the mentioned below some other proof of address verification examples. Check them out –

·         Aadhar Card

·         Driving License

·         Passport

These ones are the most commonly asked ones. So, make sure to have them with you too.

Final Thoughts

Well, not to forget these methods have been mandated by the government to ensure everybody’s safety so better all should comply with them and their norms. If you wish to integrate any such smart addition into your business, to make the verification process in your business workflow a bit easier, prefer talking with some professionals.