Video KYC For Online Customer Verification

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.

Real- Time Video Identity Verification Explained

Online video identity verification has come up with one of the most secure and automated services in recent times. Since financial industry is now getting more digitized and advanced than ever before, the need for online identification services is growing too. The goal is to make workings and business processes simpler for you and customers.

Online video identity verification services –

 

Following up with online video identity verification and KYC (Know Your Customer) process eliminates several risks of online frauds and financial crimes. Nowadays, there are so many scammers around everywhere, who are willing to do such wrongful scams, if they find the slightest of the vulnerability in your business system. The goal is to eliminate the threat of a breach, tough compliances, takeovers, and identity thefts.

 

Effective online video identity verification services help you in addressing such predicaments. Such solutions work exceptionally well in the approval of real customers, reduce charge backs, deter fraudulent activities, and increase business conversions to a great extent.

 
What are online video identifications?

 

Video identity verification is a convenient, quick, and extremely secure means of verifying customer’s identity online, in a short span of time.

 

Having a secured identification process at one’s end makes it very difficult to scammers to make any sort of identity fraud. It works as a deterrent that works great in ensuring now wrongful activities will take place and often work great in providing you with the peace of knowing you are at the safest end.

 
Benefits of integrating online video identity verification process in a business –

 

·         Having an online video identity verification process at place, speeds up the customer on-boarding process.

·         It significantly reduces the risk of online fraud.

·         It helps a business with KYC/AML compliance, and building trust.

·         This process works great whenever it happens to improved security.

·         Identity fraud can really cost you a lot. Therefore, having such a solution at place improves efficiency, saving you time and money too.

 

With video KYC (Know Your Customer) identity verification using liveness checks, there are no wonders why so many financial businesses and companies are choosing to implement this security procedure in their business.

 

Use cases of video identifications –

Today these online video identity verifications are extensively used in the financial service sectors ranging from banks to government institutes to initial coin offerings to crypto currency market to the block chain.

 

The purpose is simple – to maintain the standard of compliance and trust, along with great user experience. Integrating video identifications is a good idea and preferred by America and other countries because it merely offers great security as compared to other conventional solutions.

 

Wrapping It Up –

 

It is not just about America anymore, but many more countries have, too, started implementing these online video identity verification solutions. As a matter of fact, the overall acceptance and implementation of this process is spreading all across the world, and it is just a matter of time till it is going to spread everywhere else, too - all because of its good and benefits.

 

 

Video Based Digital KYC to Verify Customer’s Identity in a Post-COVID World

COVID-19 virus has put everything on the stake in the real world. As a result of this, social distancing seems to be the only ideal way out to stop community transmission and break this chain to save lives. Taking this in the notice, regulators are too now reiterating their support towards video based digital KYC to ensure safe and secure financial transactions across banks, and other financial institutions. In fact, it not unsurprising for us all to see the phishing scams happening these days in this pandemic time. Therefore, this video KYC for customer verification has come up as an hour of need and a huge relief.

Reserve Bank Of India’s recent decision to allow video KYC has brought so much relief at this crucial time. It not just brings great benefits but also cuts the costs by big margins. With this, there comes the great advantage of on-boarding customers remotely, which provides greater security to financial institutions and banks as compared to other forms of methods that exist presently.

This video based digital KYC process is considered as an effective means to leverage numerous digital channels for customer authentication by official entities.  There are many good reasons that make everyone integrate into their working processes. It has also become a must to follow approach too.

Video Based Digital KYC Process

This Video KYC for customer verification method allows banks and financial institutions to make a check with the customer’s identity by going through his or her Aadhar card, PAN card, driving license, online remotely. The best part about this process is that one can do this whole process in the comfort of their homes only. To carry out this process, an agent must be appointed in order to make sure everything is carried out effectively and that the person is present at the certain for that time being. This process can be carried out by capturing the geo coordinates of the concerned person.

Presently, it has become a necessity for everyone to follow up with the process. No matter, if wishes to open an account in the bank, or want to make any transaction in mutual funds and fintechs. In this process, a customer has to make the video call online via the domain link of the concerned financial institution and not with any other third party link. The best part about this video KYC for the customer verification process is that it can only be done by the officials who are specifically trained for this verification process only.  This process has now mandatory for everyone to follow up with.

A prospective person / customer can do this video KYC process in simple steps. Following are those three simple steps –

·         At the very first, he or she has to register with an official link and fill up all the details online.

·         He or she has to follow up with the process and attach all the documents by taking all the regulatory guidelines into consideration.

·         At last, please submit the form, and it is going to take a few minutes from a person’s end.

Following up, this process is not as hard as it may seem. One can also consider availing some assistance from professionals, in a case, if required.

Benefits of Video Based Digital KYC Process

Despite of being in rage, there are many other benefits that banks, other financial institutions and government can experience and avail advantage of. These are one of the major and standout benefits of the digital KYC process and of course, the alluring ones. Let us consider, the best of them –

•          It lessens the cost of total services
•         Helps in providing better and superior customer experience to people
•          Gets faster and quicker turnaround time
•          This effective and innovative process minimize many security and other risks

These are some of the top benefits, everyone currently in availing with video KYC for customer verification process.

The Future of ID Verification Suite for Seamless Customer Interactions in a Digital World

Customers nowadays have expectations of an impeccable experience, enriched competence, and responsiveness while interacting with banks, NBFCs and other financial institutions. Customer on-boarding is a prospect to gather pertinent info and know about the customer and their apprehensions. The first step towards refining customer experience is a completely digital on-boarding practice. Digital customer on-boarding has proven to ease operating costs.

In the current financial situation, it is vital for banks and other business institutions to maintain their present and old customers while attaining new ones. Therefore, now banks are trying hard to deliver an end-to-end digital acquisition and astringent experience that is unpretentious, and bespoke. Finance institutions are competing to keep up with online video verification to progressively have a check over mobile and multi-device client base.

Major Challenges Facing Digital KYC & CLM

The major challenge facing the commerce is the “client experience” in client lifecycle management and client on-boarding. In spite of its revenue-making abilities, client on-boarding lingers technology-lagging, subsidized made up with data stacks. Lately, client on-boarding teams are fraught to onboard new clienteles with new & ever-developing rules. A recently held Fenergo survey claims that financial organizations are dropping up to $10bn in income due to deprived data management. As a matter of fact, this shows a relationship, which suggests that financial foundations must accumulate up to or more than 100 fragments of data from customers in order to finish the on-boarding process. Even though, a deprived centralized data management plan & incompetence to re-use existing user data plus documentation make the inevitability execute client outreaches, thereby persuading the user experience.

How Innovative Technologies are Reforming KYC Compliance? 

There are practical means to implement innovative and incipient technologies in different aspects of business. Via linking the end-to-end digital client drive, numerous financial institutions are finding ways to augment the computerization of manual actions. Let’s consider an example over here to see how these innovative technologies are reforming. The practice of (OCR) i.e., Optical Character Recognition to automate the intake of data on citations may decrease operational inadequacies at a greater extent. In addition, the introduction of eSignatures & electronic ID&V technologies are working to form frictionless user journey thereby improving the complete customer experience.

What can ID Verification Suite offer?

                         

A comprehensive ID verification online solution is made around customer behavior, making your service effective and reliable.

These suites develop a 100% automatic solution driven by intellectual software with user confidentiality in mind, safety by design, and reliable. It is reliable, simple to assimilate, and ready to meet the requirements and desires of your business.

To put it simply, these suites make certain that your clients are genuinely who they claim, and that's simple as taking an ID image and taking an identity proof. 

• The suite provides different forms of document verification to bring into line with your safety expectations: from inspecting the cogency of the Machine-Readable Zone (MRZ) to extra progressive control below white light, infra-red and UV checks. You can even authenticate the info stored in the chip of the official papers.
• No matter if you desire service in SaaS mode to gauge up or setup your servers on-site to meet the terms with a specific country or business rules, these ID Verification solution is effective enough to meet your requirements.
• Implement these ID Verification Suite solutions where it ensembles your workers the finest. The cross-platform solution supports mobile & tablet devices.

 ID Verification Will Make Life Simpler and Identities Safer

 In an ever more associated digital world, online ID verification is a fundamental part of your online safety. While you may not practice it too much at the moment, in the impending years, it will become as predominant as using a username and PIN.

Identity Verification is an extent in which some of the most stimulating new tech developments are developing. These offers an added advantage – people’s belief in the business and the brand is reinforced by seeing in action that the safety and confidentiality of their personal information is something the business pays more than edge service to.

A Brief Introduction to Video-Based KYC Authentication - How It Works, Features & Fruitful Benefits

The video-based KYC authentication or video customer identification process launched by the RBI (Reserve Bank of India) for digital wallet providers, financial institutions, Non-banking financial companies (NBFCS) & other sectors regulated by the central banks. It is the consent-based alternate method of KYC in which customers can open new accounts via facial recognition and video-recording apps. However, the banks can get benefits from the artificial operated digital KYC to prevent money-laundering cases or fraud actions.

How Video KYC In Banking Works?

The working model of Video KYC in banking relies on face-matching tools and the latest technologies to ensure that the person who has gone through the process is genuine or belongs to the country. The step-by-step procedure to perform the bank grade digital KYC is given below.

●      The financial entity can coordinate with the customer to know his suitable timing to start the video-conference or face interview.

● Once the customer gets online with documents (Pan Card, Driving Licence, Aadhar Card) in the app through the smartphone, the bank employee also gets available with his app or website simultaneously.

● Remember, this KYC authentication is entirely done by the video-recording that means the documents that customers will show to the bank concerned person are recorded in the one footage. The bank agent may ask a few questions while making the account in video KYC that will be treated as a proof which one can’t change in the future.

● Moreover, the bank provides an interface to the users in which they can fill the personal instruction after reading the declaration and pop-up messages. Make sure the method of filling the application may vary from bank-to-bank. 

● There is no need to scan the photo and signature to submit the authorized officer of the bank though they directly take the digital signature from you. Even it captures the live photo along with detecting your live location to establish the identity in video-based digital KYC.

Salient Features of Video KYC in Artificial Intelligence Style 

There is an extensive range of features specially designed for the KYC AI that are mentioned below:

Real-Time Verification

The video customer identification system allows the extraction of details from ID cards in the real-time method. In this case, customers are free from the mess of filling permanent account numbers manually again & again.

How to Submit a Pan Card in Digital KYC?

●  Open the video chat and hold the PAN Card properly with both the hands. The official person will take the card details in the video to assure from the issuing authority that the details are correct.

● On the other hand, the geotagging is used to trace the live location of the individual, which demonstrates the person is physically present in India and ready for the digital KYC.

●  The date and time stamping is done by the banks to maintain the records carefully.

How to Submit the Aadhar Card in E-KYC Authentication?

The process of Aadhar submission is similar to the PAN card verification in digital KYC. Still, it can be OTP based, and even individuals can schedule a time & date to start the onboarding process based on their personal choice. Some entities may authenticate the Aadhar card offline that means there is a wide array of ways to verify the customer identity.

In-Person Portal Verification

The bank-grade digital KYC offers in-person portal verification systems that are used to approve the final KYC by the agents. The technique is far better than traditional bank opening account systems as there is no pressure of managing the bunch of files.

End-to-End Security

The end-to-end encryption is practiced while operating the KYC in banking that ensures that no third-party can steal the recorded data which has been sent by the users. All the information is encrypted and securely saved in the database servers or cloud by the banks to manage the further retrieval process. 

Benefits of KYC Identification

●        End up the cyber frauds.

●        100% application accuracy.

●        70% reduction in back-office overhead expenses.

In the Nutshell

Video KYC onboarding solution is one of the powerful ways to wind up the identification process in minutes. Are you crazy to know more about digital KYC and how it enhances the productivity of Fintech Businesses? Explore the Signzy to get the instant automated back-office operation services using AI technology.

Video KYC-The Easiest Way for Performing KYC

Know Your Customer (KYC) verification is done by businesses to verify the identity of their clients. Through KYC, businesses seek information about the address, identity proof, phone number of their clients. KYC is critical for any institute; companies of all sizes are a big supporter of KYC. KYC is done to ensure that the client is not involved in money laundering, bribery, corruption, or terrorist financing. Through KYC, businesses can assure that they are doing business with legitimate entities.

However, many customers are not happy with the way KYC is done; the customer is required to visit the institute to submit the documentation. Not everyone has time to go out for KYC personally; it is especially difficult for sick and seniors. Keeping in mind all these problems, online video KYC has been introduced.

What Is Video KYC?

Video KYC enables a business to complete the KYC process without meeting the customer. It is beneficial for the customer as he doesn’t need to visit the institute.

How video KYC is done?

In video KYC, there is a live video session with the client in which he establishes his presence; the user confirms his identity as per government identification cards. For the purpose of compliance and audit, the video is recorded.

Online video KYC saves time, enhances user experience and a business saves 90 percent over physical verification costs.

How we replaced legacy banking processes with AI-driven technology

Signzy — Building Global digital trust system using AI & Blockchain

As Andrew NG phrases it perfectly “AI is the new electricity”. We at Signzy are true believers of this and have witnessed what AI could do, how deep its impact can be and the drift it has brought in the way we approach our problems.

Being in the finance and regulatory domain we have been identifying a series of our customer problems which could potentially be addressed through AI.

One such interesting use case we encountered recently was classification of Identity cards. Given an image of an identity card the algorithm has to classify it to one of the following classes.

1. Aadhaar
2. PAN
3. Driving License
4. Passport
5. Voter Id

In this blog post we will take you to behind-the-scenes of our state-of-the-art system and how we tackled the problem, ultimately overpassing the targeted accuracy required for real world use.