The KYC solution has recently undergone a number of updates. As a result of initiatives from the banking industry and other financial firms, they switched to digital platforms. Several financial companies refused to use the new video verification solution as soon as it became available to customers. Even after the pandemic had spread throughout the world, some banking institutions chose not to use KYC video verification.
How Do Digital Systems Help Fraudsters?
When organizations learned about the video KYC option, demand for it increased, forcing the banking industry, start-ups, and large organizations to create various online solutions to meet customer demand. However, many banking sectors were forced to reduce the number of consumers who might use video identification sessions for online KYC solutions. The latest version also comes under criticism for the system requirements and a shortage of worker training. In this situation, a lot of fraudsters recognized an opening and employed effective methods to hack the system. Financial institutions were preparing for these attacks, so they had to protect their systems right away.
Easy Identity Verification Made with KYC Video Verification?
Clients and KYC professionals connect to each other during the online KYC video verification process. In a cool and approachable manner, the expert conducts the interview. The client must have a legitimate identity with them when they enter the interview. A KYC specialist verifies that a customer is real and not fake by probing questions and observing their behavior.
Why Should Businesses Adopt KYC Video Verification?
Fraud Prevention
In order to ensure that there hasn’t been any identity fraud in this case. KYC experts conduct live interviews with the help of AI and ML algorithms. As a result, both businesses and private clients can use the process without fear.
Reduction in Money Laundering
The legitimate client onboarding system protects companies against money laundering attempts. The appropriate customer background verifies by considering it during the KYC video verification interview process. To confirm that they were not subject to any sanctions or added to a list of people being watched for financial crime. Consequently, the Know Your Customer video serves as a useful tool in lowering the incidence of money laundering.
Improve Experience
The KYC video verification process has the advantage of cutting out the time-consuming steps required for physical authentication. The lengthy onboarding process can be demanding and upsetting for new customers. They take a quick and straightforward approach to stopping the process in the middle, which helps them save time. The KYC video verification is critical for the clients to continue to have a positive experience.
Decreased Paper Related Work
The digital process makes it possible to avoid the need for lengthy paperwork and tedious manual labor. Information used to be difficult to organize on paper with the old methods, and it often became disorganized. Businesses are using the latest techniques to reduce time and resource costs.
Traditional KYC vs Video KYC Processes
This method is used to validate a customer’s identity and is usually recognized as the KYC procedure. It helps in assessing any risk associated with the customer’s profile. Companies must also effectively comply with KYC and AML rules in order to follow the process. CIP (Customer Identification Program), is a manual technique that is used in traditional methods of performance verification as part of the onboarding process. Due to the lengthy process of verification might take weeks or even months, which causes a negative effect on the customers, they discontinue the process.
The Need of KYC Video Verification in Technological Advanced Age
The KYC video verification solution is becoming more and more significant today. It is proving to be a powerful force in the developing certification industry. In addition, modern authentication processes are time and costs efficient. The frequency of fraud and scams is increasing, which restricts financial organizations’ adoption of more robust security measures. Since KYC video verification is effective and highly accurate in authentication procedures, it has become a necessity in the contemporary age.
Concluding Remarks
In other words, identity authentication and screening procedures have become mandatory. Each bank branch and financial institution relied on them heavily during the customer onboarding process. Customers have access to cutting-edge verification solutions thanks to the development of the most recent online services, which help reduce the risk of fraud and terror funding. It should implement a rigorous verification process for the onboarding of customers from all over the world. Any financial institution can see videos of actual KYC processes. For accurate facial identification of the customer, the video KYC solution makes use of face recognition and liveness detection features.
