Customer Onboarding with Artificial Intelligence

Artificial intelligence is dominating many sectors, and financial institutes are no different. Artificial intelligence makes our tasks quick and easy. In video KYC for customer verification, artificial intelligence is used extensively.

Enhanced User Experience

Video KYC onboarding helps in making user journeys hassle-free. The latest technology, like artificial intelligence, facial recognition, document reading, and multiple financial dataset integration, are used to eliminate form filling and physical visits to the financial institutes.

Scalable Backend Operations

Artificial intelligence and Learning-based core regulatory engine play an integral role in helping businesses scale faster, cut turnaround time, and reduce cost. The latest systems simulate human intelligence to bring Intelligent Process Automation (IPA) in business processing.

Privacy and Security 

Privacy first design principle used by organizations providing video KYC solutions helps create the state of the art security, privacy, and data protection infrastructure, which helps in creating fully secured, dedicated, and on-premise applications. Digital frauds are rising in numbers, and for that, image and video fraud checks help to determine whether there are any chances of frauds or systems are safe and powerful to handle everything securely.  

Faster Digital Transformation

Faster digital transformation is the need of the hour. Specific financial and compliance risk modules are there to help you with a speedier digital transformation. You don’t require any coding, plug, and play pre-integrated modules help make connections quick and hassle-free.

How Video KYC Takes Place?

Video KYC is a simple process that doesn’t take a lot of time. The user requires a laptop, tablet, or phone and a working internet connection. 

Video KYC is a simple process that doesn’t take a lot of time. The user requires a laptop, tablet, or phone and a working internet connection. 

The bank executive is on the other side of the video chat. He learns about the location coordinates of the user. The user should be in the same country as the bank/financial institution. Then the bank executive asks users some basic questions like his name, address, etc. 

Then he asks users to upload their identity cards issued by the government. 

The user uploads the documents, and the bank executive checks them and matches the user’s face with that on the documents.

Artificial intelligence, facial recognition, optical character reader techniques are used to check the documents to ensure they are not fake.

The bank executive might record the video.

The user is not allowed to record the video.

After the process gets finished, the user is allowed to disconnect the video call.

Final Words

Video KYC verification is an easy and stress-free process that allows customers to complete the KYC process from the comfort of their homes. Users don’t require visiting the bank branch to complete the process. Artificial intelligence makes it possible for companies to allow the video KYC process. In a short span of time, we will see more and more companies using the video KYC process to provide a better customer experience. Many top companies around the world are successfully using the video KYC process by using artificial intelligence and making the customer onboarding process quick.

Tips to make Onboarding Quick with AI-Powered Digital Solutions

 All financial institutes want to make onboarding quick and easy. Traditional methods of onboarding are time-consuming and not convenient for customers, plus they are not cost-effective.

KYC onboarding uses artificial intelligence to make the onboarding convenient for both customers and financial institutes. In this pandemic, nobody wants to leave their houses. Everybody wants to stay safe. However, there is some important work that requires people to leave their houses and be physically present at the place. Onboarding was one of the tasks that required the physical presence of users so that financial institutes can verify that the user is not a fraudster.

KYC onboarding eliminates the need to visit the bank or financial institute to complete the onboarding process. With video KYC, users can complete the KYC process from the comfort of their homes.

So, how can one complete the video KYC process? For video KYC, the user has to video chat with the bank executive. The bank executive will check the coordinates of the user to ensure that the user is in the country. Then the bank executive will ask some basic questions to the user like his name, address, etc. The bank executive may record the call, but the user is not allowed to do the same.

The bank executive will check that the video is live, and it is not pre-recorded. Then he will ask the user to upload the government-approved identity cards. The bank executive will match the face of the user in the video chat with that on the identity cards. Artificial intelligence plays a crucial role in the process. It is with artificial intelligence, facial recognition that the identity of the customer is matched, and there are no chances of error.

Why AI-Powered Video KYC?

Improved User Experience

Users want an improved experience and want the onboarding journey simple and quick. The latest technology, like facial recognition, artificial intelligence, multiple financial dataset integration, and document reading, are used to eliminate form filling and physical visits to the banks.

Privacy and Security 

Organizations providing video KYC solutions pay great attention to privacy and security. Data protection infrastructure helps in creating secure and dedicated applications. Digital frauds can be eliminated with the help of services that pay attention to security and privacy. Money laundering instances can be greatly reduced when we have information about users. 

Scalable Backend Operations

Artificial intelligence and a Learning-based core regulatory engine are used to make digital onboarding solutions that help businesses to cut costs and time and provide users with helpful solutions. Scalable backend operations help organizations to improve their operations.

Final Words

Artificial intelligence solutions like video KYC onboarding save the time of users and financial institutes and provide them with a cost-effective customer onboarding solution. Artificial intelligence ensures that the documents provided by users are correct and authentic. It is a great way to avoid the onboarding of criminals and fraudsters.  

Payment Industry and Digital KYC go hand in hand

 Today, one of the largest growing industries is digital payment. However, it is still challenging to make it easy to accept these payments. Merchant onboarding has been greatly simplified with digital solutions. Digital solutions help in reducing KYC costs, and with the help of Artificial Intelligence, the merchant risk reduces significantly.

Merchant Onboarding

Acquirers can easily onboard merchants with the help of end-to-end automated application digital tools. Digital solutions prove useful in removing bottlenecks and make the process simple and seamless. Digital solutions provide a customizable solution that helps t automate the application process. AI, optical character recognition, facial recognition are some of the technologies that are used in the video KYC process.

Wallet or Credit Card KYC

When a new customer is brought onboard by a business, the KYC information is collected from the customer so that the business can verify and check the details of the customer. One can differentiate the profiles based on the risk factor. This way, a business can know whether they are onboarding a safe customer or a high-risk customer. It helps you to make your decision based on data rather than assumptions.

You should choose a KYC solution for your business that is fully compatible with mobile/desktop web browsers, tab, or a Native app. Choose an application that complete overhauling through a single application.  

You get the following features when you choose digital solutions for KYC:

Digital Business check

Proprietary algorithms allow to reference and check the business name and details against the government and international databases.

Online ID check

Forgery check systems allow verifying merchant user details such as identity documents issued by the government. Artificial Intelligence is used to perform these functions; AI-based Image forensics makes it easy and quick to know whether the documents are real or fake. 

Automated Background Risk checks  

Powerful algorithms check in real-time; they can check hundreds of data sources within seconds. This includes Negative Merchant Ezmatch DB, AML/CFT, Credit checks, etc.

Digital Income check

It is crucial to use digital methods to estimate and establish income. This includes employer verification, Bank statement, salary slip digitization, income tax returns.

 Secure Digital Contracts

Secure digital contracts are required by merchants. Digital contract solutions allow an easy and secure way to sign and obtain contracts. Facial biometrics provides enhanced security.

Modern UI Backend Dashboard

Look for a solution that provides a modern UI dashboard so that risk managers can have a look at the risk assessment of the customer in real-time using proprietary AI algorithms. The solution that integrates all merchant risk information on a single dashboard helps in making fast and accurate decisions so that one can accept or reject a particular merchant.

Final Words

Digital KYC solutions make use of artificial intelligence, optical character reader, and facial recognition techniques to make the right decision. These solutions are great for merchant onboarding as they are quick and effective.

Why is KYC Compulsory, and why must Banking Institutions Perform it?

Criminals and money launderers use fraudulent identities during the onboarding process to mask their true identities. KYC in banking requires banks to "get to know" their customers by using by confirming to a high level of assurance that those customers are who they say they are.

Nowadays, KYC is done online; that's why banks are looking for effective solutions and technologies that can effectively verify customers remotely.

The central bank has said that digital KYC, i.e., capturing a live photo of the customer along with valid identity documents such as Aadhaar card, PAN card, or other government-approved identity cards and the latitude and longitude of the location where such live photo is being taken by an authorized person of the Reporting Entity (RE).

The reporting entities (REs) would record the entire session and capture photographs of the customer present for identification. The information collected will be like this:

• Reporting entities, apart from banks, for the goal of identification, can only carry out offline Verification of Aadhaar.

• Banks are allowed to use either offline Verification of Aadhaar or OTP based Aadhaar e-KYC authentication for the purpose of identification. During the video KYC process, the customer should display a clear image of the PAN card to the reporting entity (RE); if e-PAN is provided by the customer, then it will work. In addition to that, the assigned officer should make sure that the photograph of the customer in the Aadhaar/PAN details matches the customer undertaking the video KYC.

How can Video KYC help Regulated Entities?

With video KYC, there is no need for the customers to go into a branch, wait there, and provide paper copies of proofs and wait for several days to complete the account-opening process. Video KYC reduces the cost of onboarding and changes the way bank accounts are opened in the future. Video KYC process is beneficial for both financial institutions and customers as it saves time and money. It costs between 150–200 rupees for face to face onboarding. Video KYC reduces this sum to a fraction and makes the whole process quick and hassle-free. 

The forms of ID that are supported within Video KYC

Customers can provide their Aadhaar card and PAN card as identity proofs. Banks can use either Offline Verification of Aadhaar or OTP based Aadhaar e-KYC authentication. All other financial institutions are only allowed to do Aadhaar Offline verification. To ensure that the Aadhaar offline files are not more than three days old, the customer is asked to download the files during the live video call. It is done to ensure that the rightful owner of the Aadhaar is downloading the offline file. Also, the customer can't record and upload Videos; only regulated entities can record the video. It is the duty of the regulated entity to make sure the process is seamless, real-time, secured, and end-to-end encrypted.

Final Words

Video KYC is an easy way to complete the KYC process. KYC payment is made when you verify your identity.

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.