Companies have seen tremendous alterations in the last two years, with digitization being the most significant development. As a result of the COVID-19 outbreak, businesses have moved their operations on the internet in order to fully exploit the worldwide market and enjoy the benefits. In terms of consumer onboarding, financial institutions have made the most improvement.Â
Businesses must strike a balance between security and customer happiness as they go online. Which approach should be taken to ensure that KYC/AML requirements are completed while simultaneously improving the client experience? Video KYC solution is the answer, as it enables real-time client onboarding while also adapting to changing regulatory needs.
Video KYC Vs Traditional KYC – What is the Difference?
The phrase “know your customer” refers to the process of verifying a person’s identity and detecting any potential dangers. AML regulations must be followed by financial institutions and other industries that deal with money. Customers’ identities were traditionally validated by a physical customer identification device, which would take weeks to get completed, and that left the customers facing a negative experience.
Video KYC of your client is a modern take on the traditional KYC, but it is better, easier, and less expensive. It eliminates paperwork allowing the full verification process to be completed faster. Clients are no longer required to visit the company and provide their identification credentials in order to open an account. Instead, all of this could be accomplished with a single click.
The growing demand for video KYC solutions
Verify identity by video call is a popular topic right now but calling it the driving force behind the identity verification market’s rise is an understatement. In addition to making validation processes more efficient and cost-effective, the rising rate of identity theft mandates the implementation of a secure verification method, and video KYC solutions is an excellent option in this case.
Online video identity verification is an efficient technique to resist fraudsters’ improved methods of committing crimes, which is one of the most important concerns for organizations in today’s digital age. KYC video identification protects customers from a range of identity frauds, including:
Fake Identities
Identity scams are the most difficult to detect due to the apparent form of deception. Fraudsters use real information, such as social security numbers, with false information to create credible identities. These counterfeits are difficult to detect in the early stages of fraud, but with video KYC verification technologies, they may now be caught quickly, preventing future fraud.
Spoof Attacks
Scammers are becoming more competent at using spoofing attacks to show their malicious intents as part of the digital revolution. Imposters use fake or hacked identities to deceive and avoid verification procedures. It is not recommended to depend exclusively on the program’s conclusions because this type of document and face spoofing assault is difficult to detect. Spoofing attempts are identified in real-time utilizing KYC video identification, which combines human and machine intelligence.
Deep Fakes
Deep fakes are made to fool technology and gain access to the personal information of customers. Deep fakes in facial authentication, for example, can be used by fraudsters to get through identification checks. A more robust video KYC solution is required since these videos are so similar to actual customers’ facial characters, therefore it is difficult to tell them apart.
Advantages of Video KYC solution
It is critical to investigate an AML solution’s features and functionalities before deciding which service is the greatest fit for the firm. When choosing video KYC solutions for your firm, keep the following in mind:
Cost-Effective
The video KYC solutions should reduce the overall cost of the identification procedure while also providing a positive user experience.
Customized Services
Because different industries have distinct criteria, a KYC should be tailored to the specific needs of each organization.
Security
Video KYC solutions protect the client’s personal information with extreme caution, avoiding data breaches and identity theft.
User engagement
It should enable an omnichannel for client or user engagement and authentication, enhancing the customer experience by eliminating the need for them to switch channels to verify their identity.
Summing it up
Companies are working to improve their customer identification process in order to keep up with changing consumer expectations and prosper in the digital age. As a result, video KYC solutions is a common practice in the authentication industry. This service can help businesses expedite their recruitment process and reduce KYC turnover time. Video verification is expected to be used in a wide range of enterprises; in fact, many companies have already begun to employ it for customer onboarding. It aids companies in fraud-free user onboarding when used in conjunction with a true online document verification solution.
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