The world experienced a tough situation during the period of the pandemic. Lockdown was imposed, and physical contact was restricted all over the world. New ways of interaction were introduced. Technology played an important part in reviving the economy of the world. As physical interaction became minimal, all the sectors introduced new ways of remote working. The Internet became the main medium of working.
Even now, the world has adopted the remote approach after the pandemic. This approach is effective for most industries as the world is shifting toward online communication and working. The financial sectors are using new digital services for their customers. By incorporating new technologies in the verification system, businesses use video KYC solutions to authenticate customers’ identities online.
What is a Video KYC Solution?
A video KYC solution uses video conferencing to confirm the identities of its consumers. the organization’s professional authenticates the customer regarding a video call. The KYC professionals have a healthy discussion with customers for the purpose of their assessment. This process is effective in verifying the identity of the customer online.
Process of Video KYC
Most digital platforms initiate this operation of video KYC verification at the time of customer onboarding. Many firms also use it as a double-check; they utilize this customer onboarding video as an extra layer of security.
- Customer Registration
The video authentication process starts with customer registration on the business online portal. The customer has to provide all the legit information about their identity in the signup phase. Customers fill out the form with the respective information. Information starts from the name, date of birth, email, and other details. The banking sector also gathers financial statements of customers via online forms.
- Video Conferencing Initialization
After data submission through online channels, customers get the video conferencing link on their email addresses. When clients click the URL, their screen will shift to the video verification platform, where they and the KYC expert can connect.
- Client – Agent Interaction
After the connection is online, the KYC agent interviews the client to verify identity by video call. The business professional asks multiple questions from the customer to gather data about their identity. The conversation is by face-to-face video call in which a KYC expert checks various aspects of Know Your Customer compliance.
- KYC Agent Verification
The agent verifies the client after a complete walkthrough of the customer. The process validates the customer’s face by evaluation through a live video call. It also proves the documents of the client through the video KYC process. All the data gathered through the operation is compared with the information provided by the client initially at the time of registration.
- Process Finalization
After complete data verification, the customer is marked as verified, and the onboarding process is executed successfully. As the process completes for digital identity verification and onboarding of clients, then they have access to the other organizational resources.
Advantages of Video KYC Solution
The video KYC process is the most suitable option for any organization. It provides a ton of advantages over the traditional KYC approach.
- Effective Fraud Prevention
The process helps in preventing fraud within the system. It contributes to scam prevention by verifying the customer’s identity in real-time. Video conferencing interaction via an online channel ensures the person is sitting on the other side. Attackers cannot breach the face verification process of the KYC video verification systems as these interactions are all directly with the organization’s professional agents.
- Restricts Money Laundering
The KYC video verification process helps prevent money laundering from these online platforms. As businesses process their trades through digital channels, fraudsters mostly use online portals for money laundering. After a thorough identity check through a video call, the customer will have access to the platform via a video KYC solution. This restricts attackers within the online environment of businesses from carrying out illicit activities. Businesses comply with AML laws with a complete video KYC identification process.
- Better Customer Experience
The video KYC solution greatly increases the customer experience. Customers benefit from a safe onboarding process that guarantees credibility because the entire verification process is online.
The global village is moving towards innovation quickly. Almost every day, new startups begin a business online. To protect their resources, businesses are taking the approach of video identity verification of their customers. With this video KYC solution, the firms can identify the real and fake users in their systems. This process uses the video conferencing protocol to verify the client. The customer and business agent interact directly and in real-time. This secures the verification process and greatly improves the customer experience.