From manual to digitally evaluating facial features from biometrics, the task of verifying identities has evolved in recent times. New technological advancements have been made in the digital world, which has opened unique opportunities for video identification. This can play a huge part in causing an increased customer satisfaction rate, retaining their loyalty for a longer period, and for upsurging a business’s growth. Due to the recent pandemic, businesses have paved the way to operate their tasks by using digital platforms. This has greatly impacted the expectations of customers as they want to attain quick results cost-effectively. This has all been made possible by enabling the end-to-end video identification service for verifying real clients and eliminating any risks of fraud associated with them.
Has the Way of Verification Changed During Covid-19?
Several transformations have occurred around the globe due to the Covid-19 crisis. Multiple companies have faced financial losses as they were unable to cope with the digital methods of verification. With the competition increasing, video-based customer identification has gained popularity as companies have sought it as an effective solution for dealing with investors, vendors, and clients online, especially while they were restricted to staying indoors. To not put a halt on the previously generated profits, this method has been implemented immensely by many companies now. It is a quick way of identifying clients’ identities and checking them against the regulatory compliance of AML rules.
How is Video-Based KYC better than The Traditional KYC?
The traditional method of Know Your Customer has its constraints which have made it ineffective as compared to the video-based KYC authentication method. The major differences are listed below:
- KYC-based identification can present results in a less time-consuming way as compared to the manual KYC method which may take up to weeks for generating results about a single entity.
- The user has to physically visit an office to submit the documents needed for identification. Whereas, in the case of the video verification process documents are uploaded digitally saving their time and cost for doing an in-branch visit.
- Any chance of error can be reduced by verifying clients through KYC video identification in contrast to the manual checking of information done by humans who are at a greater risk of making mistakes.
- The hassle of dealing with piles of paperwork gets minimized by executing the video identification solution while saving the proof of verification digitally on the database as compared to the traditional method of KYC which presents no proof of verification to be saved.
How Does The Video-Based KYC Identification Method Work?
The beneficial procedure of the video verification is based on 4 primary steps which are as follows:
- Connecting through a link
The user is initially sent a link to connect on the video platform, where either they can be asked to show their documents individually or are joined by a KYC expert who guides them along the whole process of verification. To start the process, the customer has to verify their phone number through a two-factor authentication process.
- Facial Recognition
The user is asked to show their full face through which their facial features are detected even capturing the minor details. The interviewer on the other end takes up the photograph of the individual while authenticating the live presence. The image taken would be further used to compare with the picture posted on the identity document.
- Address and Document Verification
Now the user is required to present the official documents consisting of the basic information about the name, address, date of birth, etc by holding them against the camera. Details are extracted by using the software of OCR. The front and backside of the document are analyzed properly to perform the authenticity checks to confirm any errors.
- Verification Results are Delivered
Once the verification has been made by checking all concerning factors, the results are dispatched immediately and the final results are stored in the back office which can be assessed by the client by going through the details section as proof of evidence.
Wrapping it Up
Video-based customer identification has made the verification process more secure and simple for businesses to onboard authentic customers. It has numerous benefits as compared to the traditional Video KYC. Implying the end-to-end video identification service will help companies to combat fraudsters more exclusively. Meetings are being held on video calls internationally while giving firms a chance of expanding their businesses while sitting anywhere in the world. Moreover, this will enhance the customer onboarding experience by virtually connecting with a client and giving them guidelines about the process and improve the brand’s reputation in the competitive market.
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