Stringent KYC requirements are becoming a norm for significant business entities and are essential to secure a strong and trusted client base. Remote
Stringent KYC requirements are becoming a norm for significant business entities and are essential to secure a strong and trusted client base. Remote client verification is possible through several methods such as biometric authentication or digital document verification and features such as address verification and anti-money laundering screening.
The “new normal” in customer verification is video KYC India which is gaining popular ground in the digital space for remote verification of clients. Several industries, right from banking to Fintech, rely on video KYC as the most effective method of customer identity address, education verification, etc.
This blog talks more about the benefits of this digital verification method backed by technology and KYC experts.
Video KYC is a video-based identification procedure done through a live video call with the help of a KYC expert. Video KYC integrates artificial and human intelligence to procure a high accuracy rate. In other words, video KYC is an automated due diligence process that can effectively facilitate the customer onboarding process with minimal manual intervention. Video KYC leverages machine learning, data extraction, OCR, and real-time face recognition as its verification techniques.
How does a Video KYC Verification Process Work?
Video KYC uses video calls as a medium to conduct the KYC verification process. Users must present their valid identity proof during the video call. After that, face verification and document verification processes occur via the call. Here are the main steps for a video KYC:
- The user must enter their credentials and register on the specific platform.
- Then, they get on a live video call with the KYC expert.
- The KYC expert then talks to the user and follows the standard procedure.
- The user presents their identity documents during the call.
- The KYC expert performs various checks, including identity, education verification, etc.
- The identification process occurs by capturing the liveness in the video and matching the image with relevant government-issued ID cards.
- Finally, the verification results are delivered to the correct company or the end-user.
Benefits of Video KYC:
AI-powered video KYC services are helpful in several sectors such as insurance, banks, and other enterprises. They can strengthen the cybersecurity protocols of companies and fight malicious attacks. The main advantages of video KYC solutions are:
- Fast and efficient onboarding of customers powered by AI and modern technology
- Customer interactions are recorded for future reference.
- Flexible and accessible anywhere.
- Lower turnaround time and costs than traditional verification methods.
- No tedious paperwork and lower scope for human error.
- Identifies and prevents money laundering, identity thefts, counterfeits, and duplicate charges.
AI-enabled tools facilitate the face recognition of candidates or customers during the verification process. There are checks and detection features in the biometric technology that ensures the physical presence of the user and identify document spoofs, if any.
Status of Video KYC India:
The Indian regulatory framework has revamped customer identification procedures for banks, financial institutions, and NBFC’s. The current rules recommend replacing paper-based techniques with video call mechanisms according to the latest KYC guidelines. Under recent KYC regulations laid down by the RBI, video verification is critical for the processes of automation and digitization of current KYC norms.
Video KYC: Implementation and Applications:
You can implement video KYC by partnering with a reputed video KYC solutions provider in the market.
Video KYC can be used in various sectors of all types of companies like banks, insurance companies, stock firms, e-commerce, and payment gateways. Here are a few applications of video KYC:
- Video KYC can be used to simplify the onboarding of customers in payment gateways for small and medium enterprises.
- Onboarding of contract staff can be done easily through video KYC with the assistance of staffing companies.
- In the trading industry that spans countries, physical KYC is a big barrier. This hurdle is surpassed with the help of video KYC.
The Final Word
Video KYC is a fast, convenient, and hassle-free replacement for all traditional methods of customer verification. It is a secure method that helps the financial industry attain a clean customer base. Video KYC also helps businesses adhere to the AML and KYC regulations and acquire customers effortlessly.