Digitization has helped financial companies to onboard customers through digital means. In the post-pandemic world, several companies are shifting towards digital solutions to ensure a positive experience for their customers. This is where fraudsters also want to bypass the security protocols of organisations. Financial firms want to use intelligent technologies such as video KYC solution to discourage fraud attempts and protect users’ data.
The financial sector businesses are bringing exciting new digital services for their customers. With the introduction of these services, the need for online identity verification increases as well, which can be well met by integrating the systems with an advanced verification system such as video-KYC.
Video-Based KYC Services: A Quick Insight
In the video KYC solution, a KYC professional or representative of the financial institution validates the identity of a user. The professional also authenticates the given documents of users during the live video meeting. During the session, a customer can only present their government-issued records to the firm’s official for in-depth verification. Various financial and other e-wallet corporations have established their infrastructure for the latest authentication solutions.
In video KYC, a trained officer conducts the interview and asks new clients to show government-issued records as evidence of identity. During the session, the KYC expert asks various questions from the client and decodes their behaviour & body language. This is to ensure that the entity in front of the web camera is not a fraudster.
Top 7 Advantages of Using Video KYC Solution
Utilising a video-based customer identification method has numerous perks for organisations:
Preventing Fraud Efficiently
Effective Fraud prevention is the biggest perk of the above innovative solution. The latest digital service has the support of AI & ML algorithms. With live video sessions and facial recognition technology, financial firms can mitigate identity fraud and streamline their onboarding process:
According to Ian Kane, the Video KYC solution presents a more secure verification method as compared to other authentication approaches. Video-based services are safer than image-based identity checks because video formats are more challenging to fake than photos. This is because the user has to fulfil specific parameters such as moving their finger or answering certain questions. This facilitates experts during the verification process and ensures compliance with international regulations.
Mitigating Money Laundering Cases
Onboarding genuine customers also protects financial companies from money laundering incidents. With video KYC sessions, comprehensive background checks can help businesses to ensure that new customers are not present on global watchlists. Hence, video KYC solution is highly facilitative in the fight against money laundering and terrorism financing.
Video KYC solution is a powerful defence mechanism that offers multiple layers of security to streamline onboarding processes and fight financial crimes, particularly money laundering. A combination of video KYC solution and other identity authentication services can create a powerful defence mechanism that can mitigate fraud for banking service providers and other financial businesses.
Reducing Manual Work
With the complete authentication procedure available online, companies can easily forgo cumbersome manual procedures that use a lot of time and drain company resources.
Eliminating Errors in Output
With support from artificial intelligence & machine learning models and other advanced features, the application of video KYC solution can produce high-quality output.
Retaining Customers
With a fast and reliable customer verification procedure, video KYC solution facilitates customer retention which is impossible with traditional approaches.
Ensuring a Positive Customer Experience
Performing KYC through video calls tackles the challenge of the authentication procedure such as drop-off rates that happen at multiple stages. Slow onboarding services can discourage new clients, who choose to shift towards other companies with better services. In this way, the application of innovative digital solutions can facilitate new customers during the verification procedure.
Clients can easily display their government-issued records in front of the camera and answer some basic questions from the expert. After collecting data from customers, the user receives the final verification results.
Verifying Identities Quickly
Customer validations with the help of video KYC solution can replace onsite visits for Id verification. In this way, with the help of innovative digital solutions companies can streamline their onboarding process and offer convenience to clients.
The Bottom Line
Performing ID verification during the onboarding process is necessary for all banks and financial vendors. With the introduction of innovative digital services, companies can offer a positive experience to their users. Moreover, this can help financial businesses to fight identity theft and money laundering cases effectively. Collaborating with a third-party service provider can facilitate firms to use a GDPR-compliant solution that ensures customers’ happiness.
Cutting-edge video KYC solution not only offers unbeatable security but also ensures compliance with international regulations. Hence, this provides a competitive advantage to the users in a tough market atmosphere and ensures exponential growth for financial institutions.
