Video KYC Solution — A Secure Method for Digital Identification of Clients

The world experienced a challenging situation during the period of the pandemic. However, governments imposed lockdowns and restricted physical contact worldwide. Therefore, the video KYC strategy was introduced. According to a survey, the Video KYC market is projected to grow from $186.45 million in 2021 to $437.95 million by 2027 at a CAGR of 15.29%.

Technology played an important part in reviving the economy of the world. As physical interaction became minimal, all the sectors introduced new ways of remote working. The Internet became the primary medium of working. Even now, the world has adopted remote working methods after the pandemic. This approach is practical for most industries as the world is shifting toward online communication and working. The financial sectors are using new digital services for their customers. By incorporating new technologies in the verification system, businesses use video KYC solutions to authenticate customers’ identities online.

What is a Video KYC Solution?

Video KYC solution helps banks and financial firms verify their customers’ identities. It allows banks to eliminate the risk of fraud and identity theft by capturing a person’s face and demonstrating them in real time. Moreover, this technology can help businesses create a complete user overview by comparing its appearance in the video with other photographs taken.

However, the video KYC process holds significance in making online payment transfer systems foolproof while fulfilling client issues, securing onboarding, and enhancing customer service. In addition, using sophisticated technologies, criminals can carry out spoof attacks and deep fakes to manipulate security systems. Thus, video KYC can offer competitive advantages by providing anti-spoofing solutions.

The most up-to-date Know Your Customer solutions are necessary for businesses to ensure their customers’ IDs are safe from attackers. As a result, it allows companies to provide their services only to authenticate clients. Thus, the organisation can enhance its business while using this latest technology.

How Video KYC Services Works?

Most digital platforms employ video KYC services during customer onboarding. Moreover, the study reveals that adopting Video KYC can reduce turnaround time by up to 90%, reducing onboarding costs by up to 70%. It is also used as a double-check by many firms; they utilise this customer onboarding video as an extra layer of security.

• Customer Registration

The video authentication process starts with customer registration on the online business portal. The customer has to provide all the legit information about their identity in the signup phase. Customers fill out the form with the respective data. Information includes name, date of birth, email, and other details. The banking sectors also gather financial statements of customers via online forms.

• Video Conferencing Initialisation

After data submission through online channels, customers get the video conferencing link on their email addresses. When clients click the URL, their screen will shift to the video verification platform, where they and the KYC expert can connect.

• Client — Agent Interaction

After connecting online, the KYC agent interviews the client to verify identity by video call. The professional asks multiple questions from the customer to gather data about their identity. The conversation is by live video call in which a KYC expert checks various aspects of Know Your Customer compliance.

KYC Agent Verification

The agent verifies the client after a complete walkthrough of the customer. The process validates the customer’s face by evaluation through a live video call. It also proves the documents of the client through the video KYC solution. All the data gathered through the operation is compared with the information provided by the client initially at the time of registration.

• Process Finalisation

After complete data verification, the customer is marked verified, and the onboarding process is executed successfully. As the process completes for digital identity verification and onboarding of clients, then they have access to the other organisational resources.

Advantages of Video KYC Solution

The video KYC process is the most suitable option for any organisation. It provides a ton of advantages over the traditional KYC approach.

• Effective Fraud Prevention

The process helps in preventing fraud within the system. It contributes to scam prevention by verifying the customer’s identity in real-time. Video conferencing interaction via an online channel ensures the person is sitting on the other side. Attackers cannot breach the face verification process of the KYC video verification systems as these interactions are all directly with the organisation’s professional agents.

• Restricts Money Laundering

The KYC video verification process helps prevent money laundering from these online platforms. As businesses process their trades through digital channels, fraudsters mostly use online portals for money laundering. After a thorough identity checks through a video call, the customer will have access to the platform via a video KYC solution. This restricts attackers within the online environment of businesses from carrying out illicit activities. Companies comply with AML laws with a complete video KYC identification process.

• Better Customer Experience

The video KYC solution dramatically increases the customer experience. Customers benefit from a safe onboarding process that guarantees credibility because the entire verification process is online.

Final Remarks

The world is moving towards innovation quickly. Almost every day, new startups begin a business online. To protect their resources, companies are taking the approach of video identity verification of their customers. Firms can identify their systems’ real and fake users with this video KYC solution. This process uses the video conferencing protocol to verify the client. The customer and business agent interact directly and in real-time. This secures the verification process and dramatically improves the customer experience.