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.