Financial crimes have rapidly developed in today’s digital world. These frauds cause people to lose billions of dollars annually. Identity theft is one of the most dangerous crimes. Firms need a reliable authentication method in order to prevent financial crimes like identity theft. A KYC video verification technique uses photographs and videos to prove that a person is who they say they are. This is a simple and quick method for a system to authenticate a person’s identity.
High-resolution cameras available on PCs, tablets, and smartphones are useful for accurate and user-friendly identification verification. Many companies use their websites to get identity documents, such as scanned pictures. Others check a person’s identification using customer service personnel from a verification service. They communicate with their consumers through a video channel or straight from their homes.
KYC Video Verification – A Complete Overview
In today’s digital age, work-from-home and international job opportunities are becoming increasingly significant. It implies that no one can enter a local bank branch, company office, or government agency without the necessary identification documents. Additionally, many banks must ensure KYC compliance which forces them to take serious measures to verify the legitimacy of their clients. Employing a KYC video verification solution can help businesses to authenticate and onboard new clients. They can review important documents while viewing a face, for example. There are several operations in the video verification method. These are as follows:
- Provide a scanned image of any document, as well as proof of residencies, such as a bank statement or utility bill.
- Send the proof documents, along with the signed and scanned initial forms, to the processing company.
- Following the verification of each of these documents, the customer will schedule a KYC video verification appointment with a reputable video provider.
- During the chat, the member of staff will ask questions about the client’s account details to verify their identification.
- The staff member will ask the consumer to hold these papers up to the camera so that they can compare them to the ones provided by email.
- The comparison of electronic copies will validate the client’s reliability. After that, the company will allow customers to open accounts.
3 Primary Methods for KYC Video Verification
The following are the three basic modes of KYC video verification:
This is the first method of video KYC authentication. Agents communicate in real time via a web application using video verification technology.
2. Customers record
Customers must record videos of themselves with their papers to establish their validity, including performing necessary liveness tests.
3. Engagement of Agents
Agents interact with clients indirectly by employing KYC video verification technology to check a customer’s credentials.
2 Main Advantages of KYC Video Verification
KYC video verification imitates the traditional process of meeting potential clients in person, looking over their actual documents, and determining their authenticity. However, the procedure offers the convenience of digital KYC onboarding to both businesses and individuals. This enables them to finish this process without having to commute or deal with any other difficulties. Both businesses and clients benefit from video verification. The advantages are as follows:
For businesses, combining the human touch with artificial intelligence technology maximizes the benefits of both types of verification techniques. A live person confirms that they are interacting with another live person who is holding these documents up to the camera. Meanwhile, cutting-edge AI technology scans these papers and compares them to electronic counterparts, allowing the lengthy verification procedure to be completed in seconds rather than minutes.
2. For Customers
While various verification measures benefit businesses directly, clients benefit from knowing that the institution they seek to join is really concerned about their safety. Although account opening and verification are frequently related, a business may later need to confirm a customer’s identity. Going through KYC video verification shows that the customer has a relationship with the company and is aware that they use a variety of measures to maintain safety and avoid identity theft.
Financial fraud has increased rapidly with the passage of time. Many companies have to bear a lot of economic damage due to these scams. Identity theft is the most popular crime of all. Video verification is a popular way of proactively meeting customer due diligence requirements and remotely onboarding a large number of customers. AI-powered technologies provide flawless functioning as well as rapid and easy consumer verification.
Banks, real estate, digital currency exchanges, and other businesses frequently use KYC video verification to ensure safety from financial fraud. It is incredibly accurate and also aids in the establishment of tighter relationships with international firms. Furthermore, the Video KYC solution helps to increase a company’s or website’s market share.