How Video KYC Verification Can Transform the Experience?

In today's time, financial institutions have realized the true potential of the AML and video KYC process for their entire business. And since these processes have ample benefits for the entire financing industry, banks can't ignore to understand the business as well as customers benefits that are accompanied by video KYC. 

Moreover, as video KYC verification comprises sensitive data, financial institutions can't be careless at all while they go through video KYC solutions as this sensitive information assists banks in identifying that the people opening the account is legitimate and aren't going to commit any fraud activities.

Over to Video KYC Verification 

To carry out the video KYC verification process accurately, financial institutions gather sensitive data such as location, occupation, status, ID, and so on. Out of all, the safest method of KYC for banks is to visit the bank and offer the documents to the concerned person required to complete the process. 

However, as many customers don't have the time to visit the bank and be available for face-to-face interaction and verify the video ID KYC, banks need to look for an online KYC verification platform that enables customers to complete the KYC verification without visiting the bank. So, online video KYC holds the true potential of bringing the customers out of the hassle and making financial executives' lives easy as never before.  

How Video KYC Verification Benefits the Customers?

Customers have an expectation of a superior experience because of the elimination of a major pain point that usually occurred during the traditional or manual verification process carried out by the banks and financial institutions. During the traditional verification process, the document pick-up is headed by a service provider's call for making an appointment.

During this, there seems a requirement to make regular follow-ups that were not connected. When the appointment gets fixed, it becomes even challenging for finance executives to carry out the KYC verification process manually since there are times where customers aren't available due to numerous reasons. Well, opting for video KYC verification, customer's time, efforts, and costs are saved as they no more have to visit the bank for the verification process.

Apart from that, the video KYC process makes the verification process simple, smart and accurate than before, where the customers get to experience faster turnaround times for loan disbursal. This ensures better visibility, improved transparency, and a lot of other benefits. Additionally, there are zero scopes of third-party risks when customers opt for video KYC solutions. The video KYC process is in complete control of the service provider, which handovers the customer information in safe hands.

Final Thoughts

With the implementation of video KYC verification, the prominent benefit is that businesses get to save a huge capital that is accompanied by the digital KYC verification process. Financial institutions will no longer have to invest huge money to verify the KYC of every borrower. All in all, this turns out to be a cost-cutting and smart solution that is going to benefit the entire finance industry and the customers in the long run.

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.

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.