Meta Description: Video KYC verification is indeed a great innovation in the digital verification system to deter attacks related to money laundering and other financial crimes.
The past two years have brought tremendous change in business, and digitalization is the most significant transformation in this regard. During COVID-19, companies have switched their operations to online mode so that they could grab the global market and get all the benefits. Financial firms including banks have taken significant steps forward to onboard clients.
As customers are availing services digitally, businesses must strike a balance between cybersecurity and customer satisfaction. But the question is which strategy should be used to comply better with AML standards while not compromising the customer experience? Well, A great option, in this case, is video KYC verification. It not only provides real-time customer onboarding but is also the best fit for the changing regulatory requirements.
Video KYC vs Traditional KYC
Know your customer is a process of confirming a user’s identity and identifying any potential risks linked with that user. Banks, financial firms, and any other company dealing with money must adhere to KYC/AML rules. What businesses used to do in the old times was they used a manual identification program to validate an individual during the onboarding process. Due to the much time it takes, customers are frustrated and are forced to shift to another company.
Thus, video identification is the digital version of the traditional KYC procedure but is faster, more secure, and less expensive. Video KYC replaces paperwork with significant results, expediting the entire verification process. With that, the customers do not need to go to the organization and submit their identification documents for opening their accounts. All of it is done remotely, from sign-up to onboarding.
How Video KYC work
Video verification is closely related to conventional KYC in that it uses a face-to-face video call as a medium for completing the KYC verification. Users must validate their identity during the video call by submitting appropriate ID document evidence. Rather than relying on several platforms to finish the KYC, KYC video identification enables omnichannel customer interaction, allowing face and document verification to take place while the consumer is still on the video call.
Growing Need for Video KYC Verification
Video identification is a hot topic these days and calling it the driving force behind the evolving identity verification sector isn’t an exaggeration. The rising number of identity thefts and other crimes are shifting the companies to video verification not because it is cost-effective and efficient but also because it provides super security services. In this digital world, cybersecurity is one of the most important concerns for businesses, and an e-KYC video verification service is an effective way to counteract fraudsters’ advanced tactics.
Video-based client identification protects against a variety of identity scams, including:
With the digital revolution, scammers are becoming more skilled with their spoofing attacks to bring out their harmful intentions. Imposters are fooling and outsmarting verification systems using bogus or stolen identities. This form of documentation and facial spoofing assault is difficult to detect, hence relying solely on the program’s conclusion is not recommended. To prevent spoof attempts in real-time, video KYC uses both human and machine intelligence.
Due to the obvious nature of the deception, synthetic identity thefts are among the hardest to detect. To build a genuine-looking identity, fraudsters blend authentic information, such as social security numbers with fraudulent information. Such individuals are a challenge to validate in an early stage of fraud but could be easily identified using video verification services to protect the companies from financial scams.
Deep fakes are videos that have been fabricated with a deep learning technique. They are designed to cheat the system and get unapproved access. For instance, scammers deploy deep fakes in facial recognition to bypass verification systems. Such videos are almost similar to the original recordings and are a real challenge to identify. This is why developing a more secure video KYC solution has become an absolute necessity.
In the verification industry, video KYC verification is indeed the expected trend. To satisfy changing customer needs and thrive in this digital world, businesses are striving for improved online solutions. Companies can streamline their induction process and cut KYC turnover time using the video KYC solution.
Video KYC solutions are one of the techniques that would be integrated into a variety of industries in the near future; in fact, several businesses have already begun to use video KYC of your client for onboarding. In combination with the real-time electronic document verification service, it ensures fraud-free client onboarding. Furthermore, it can detect the client for any spoof attacks, thus proving to be a great choice for all the sectors whether it is a bank, e-commerce, or any other dealing with the money directly or indirectly.