Video KYC — An innovation towards traditional KYC to reduce compliance costs & turnaround time
Video KYC processes are making customer verification easier for industries around the globe. It is not only speeding up the entire customer onboarding process but also reducing the time and redundant costs of compliance. Opting for digital Video identification solutions rather than old outdated systems can give financial institutions a competitive edge in the global market.
As technology is becoming more intelligent, online criminals are becoming increasingly sophisticated and always finding new ways to abuse the system. Thus, making the customer due diligence process a lot more important.
KYC or Know Your Customer compliance is a backbone of the global financial system as it prevents the system from subjection to financial crimes such as money laundering, terrorist financing, or corruption. But one can argue, manual KYC processes are complex, continuously evolving, lengthy, and limited by geographical boundaries.
Even though performing KYC processes are mandatory for financial institutions around the globe to eliminate money-related crimes, the cost of manual KYC is surprisingly sky-high.
According to a source, many financial institutions around the globe are squandering over $500 million on KYC processes annually.
Since customers are always looking for faster ways to get things done, onboarding new customers can take months to conclude which is making customers impatient enough to walkout during the process before it reaches its final stage. According to the Thomson Reuters survey, 12% of businesses have said that they had to change their banks because of lazy KYC issues.
Having said that, having a video KYC solution can drastically reduce KYC and AML costs and time by 70%.
Video KYC is one step ahead of traditional KYC processes. VideoID is an identity verification process that is completely carried out remotely through a live interview with KYC experts for efficient and speedy onboarding.
Along with improving onboarding speed and costs, this digitized onboarding process ensures the true identity of potential customers and regulatory compliance. The financial industry has grown to a great extent in the last few years and it is evident how technology can make financial services easily accessible to everyone. Thus, reducing compliance costs can help financial institutions to spend the additional costs on improving their infrastructure rather than spending on meaningless manual processes.
Therefore, Video KYC is the future of simple KYC, transforming notoriously rigid solutions into smoother and flexible ones. Still, it would be senseless to say that every solution can meet each business’s requirements. But when speaking of financial institutions such as the insurance and banking sector, the Video KYC solution is proven to bring value and accessibility. Furthermore, businesses around the world are losing billions in fraud annually.
According to the 2018 global fraud and identity report by Experian, 63% of businesses have experienced major fraud losses within a year.
So, video KYC is a simplified process that is helping industries in fighting financial frauds. As it can help detect suspicious individuals onboarding through Artificial intelligence, liveness detection, and the applications of machine learning and facial recognition, to safeguard the interests of investors.
Shufti Pro’s Video interview-based KYC solution is leading the wave in the digital identity verification market. Along with fraud prevention, AML, and KYC services, Shufti pro’s video KYC solution is available globally with a lower turnaround time of 30–60 seconds.
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