Every organization, whether it’s a small or a large firm, not only needs expertise, attention, and persistent motivation but also requires the verification of customers. Purchases and transactions take a long time to reduce customer retention and it makes them move towards competitive firms. KYC video verification authorizes every organization so they can identify and verify their customers without taking too much time. For instance, when a person presents their ID documents and the system verifies them. In that case, there is a possibility that someone else is using the real person’s documents. This puts the legal businesses and companies in the thought of what they should do next. Video KYC has made it a lot easier for identifying their customers.
The procedure involves an identification expert taking interviews of the other person where an individual is asked to provide proof of documents. The documents required for verification include a NIC card, driving license, passport, proof of residence, and other related documents. The video KYC professional examines the end-user along with the available information.
The Process of e-KYC Video Verification
This is often the last step in the verification procedure; post confirming documents with the available documents and then match both. After this, the agent calls for video verification to cross-check and confirm the information like visa interviews and the embassy.
The individual has to go through a series of steps;
- After the person gets himself/herself registered on a platform by filling out certain forms. The details acquired in the forms usually are name, age, DOB, current residence, and relevant data.
- In video KYC, the agent calls an individual on a video call for further confirmation of his identity and to determine his/her facial features and specific characteristics. This step usually provides proof of the location of the individual by identifying his accent and appearance.
- The optical character recognition OCR in KYC digitally captures the data in the documents to match it with records both at the regional and international levels. It takes minimal time to validate the documents.
- The verified results are generated and kept in the back office of the company or institution.
The Paradigm of KYC Video Identification
There are several options in the video verification process:
1. Local Experts
Businesses can hire a group of KYC agents from various nationalities and areas, keeping in mind the target audience and previously associated profiles so that clients would feel at ease even during the process of video KYC of your client.
2. KYC Representatives within the Organization
The organization or institution can recruit suitable employees for identification purposes more efficiently and cost-effectively. This facilitates the scaling up of customer due diligence (CDD).
3. Self-Acting Video KYC
This step improves the reliability and accuracy of the process. The company can set up an artificial AI-based verification system in which a person’s identification is confirmed via chat, supported by the AI model in the solution. It shows the validation of a person’s records and information.
Video KYC and AML Screening
Synthetic Identity Theft
The technology has become so advanced that scamming and frauds have been easy to perform. Professional fraudsters and cybercriminals are hitting pretty big numbers and if the rate keeps going up, then there is a chance of losing more than 2 billion USD dollars due to inefficient KYC services.
The company must adopt proactive measures to issue an alert whenever there is a chance of any suspicious activity. Money laundering issues can be dealt with through the transaction monitoring process. Strict regulatory measures are necessary but firms don’t want to burden their staff with hectic procedures, and the video KYC solution process came to the rescue.
Use of Technology
Fraudsters and hackers use this technique to get access to the network and database these days. It became popular in the entertainment sector, where studios and production companies used it to make impersonation of celebrities. It can further deceive security systems and steal important records from confidential databases. Scammers can use it to make it difficult to distinguish bogus videos. In the video KYC, the combination of AI and human verification system removes any gaps by compensating for each other’s limitations and ensuring a fast and flawless end-user experience.
In a Nutshell
With online fraudsters and criminals becoming more well-equipped and skilled in their activities, the need for effective video KYC solutions is becoming more prevalent in almost every sector. Firms want to improve customer onboarding while still complying with AML/KYC requirements and removing risk. This would only be possible when the firms integrated video KYC identification in their systems which will further assist in satisfying customers. It aids in the growth of businesses and acts as a shield to protect them.