The corporate sector has transformed dramatically over the last few years, and digitization is the biggest development now. Companies are shifting to an online mode of functioning during COVID-19 in order to take advantage of the world market and its opportunities. Banks and other financial institutions have advanced significantly in terms of client onboarding.
Businesses must consider user satisfaction and security as more customers use digital services. Which approach, however, they should use to adhere to AML rules without jeopardizing the client experience? Video KYC verification is, thus, a helpful solution in this situation. In addition to offering real-time customer enrollment, it also fits the evolving regulatory needs the best.
Difference Between Video KYC and Conventional KYC
Knowing your customer is the act of authenticating a user’s identity and locating any potential dangers associated with that user. Any business that deals with money, including banks and financial institutions, must adhere to KYC/AML regulations. An individual’s validity during the onboarding procedure was previously verified by firms using a manual identification procedure. Customers have to go to another business because of how long it takes.
Video verification is the old KYC process in digital form, but it is quicker, more reliable, and less costly. With considerable improvements over paper-based KYC, video KYC verification speeds up the entire verification system. With it, users can open their accounts online without having to visit the company and present identification. Everything, from signing up to enrolling, is done online.
How Does Video KYC Solution Work?
Video validation is similar to traditional KYC in that it also conducts the KYC verification through a face-to-face video conference. During the video chat, users have to prove their identity by presenting the necessary id document. Video KYC verification does face and document authentication while the client is in the video chat, eliminating the need for several platforms to complete KYC.
Video KYC Verification – The Need of the Hour
It is not an exaggeration to say that the growth of identity verification lies in the strong video recognition at the moment. Companies are switching to video verification due to the rise in identity fraud and other offenses. It is not only because the process is efficient and productive but also because it offers top-notch security forces. The video KYC process is an efficient way to combat fraudsters’ sophisticated strategies in this digital age. Security is among the top issues for businesses nowadays.
A robust video-based customer identification prevents the following identity scams in the digital age:
Spoof Attacks
Scammers are getting better at using spoofing attacks to reveal their malicious intent as a result of the digital revolution. By employing false or stolen names, imposters deceive verification systems and outwit them. Because this type of document and face spoofing assault are difficult to identify, firms should not rely exclusively on the software’s judgment. KYC video identification employs both human and artificial intelligence to thwart spoofing efforts in real time.
Synthetic Identities
Synthetic identity scams are some of the most difficult to spot because of how overt the deceit is. Fraudsters mix true information, like social security numbers, with false information to create an identity that appears real. Organizations can quickly identify these people by utilizing video-based KYC services. They can safeguard them against financial fraud, even though they are difficult to authenticate in the early stages of fraud.
Deep Fakes
The term “deep fake” refers to videos that a fraudster creates using deep learning. They made those clips to evade security measures and get unauthorized access. For example, to get around verification systems, con artists use deep fakes in face detection. These films are extremely difficult to spot because they almost exactly match the actual recordings. For this reason, creating a somewhat more secure KYC through a video call has become absolutely essential.
Final Thoughts
Video KYC verification is the projected trend in the authentication sector. Businesses are working toward better online solutions in order to meet shifting client expectations and prosper in this digital age. With the help of video KYC verification, businesses can speed up the induction process while also reducing turnover time.
In the not-too-distant future, a number of firms will start using video KYC of the customer for onboarding. Thus, it will become one of the strategies that one would incorporate into a number of industries. Video KYC verification enables fraud-free client onboarding when used in conjunction with the real-time digital document validation service. Additionally, it has the ability to recognize spoof attacks on the customer. This makes it an excellent solution for any industry handling money indirectly or directly, including banking and e-commerce.