The whole world is under the revolution, it is fascinating but the phenomenon is bringing major challenges. Businesses face major hindrances while onboarding customers. Also, the platforms have become more prone to risks after technological shifts. As per SecurityMagazine, 64% of companies face a cyber-attack every 39 seconds. The identity fraud reports are also not less in number. So how can businesses detect and prevent such risks?
Here, AI-powered video KYC is a reassuring solution. The new customer verification services have ticked out the old manual ways. AI-backed solutions keep the information safe that is extracted during onboarding. Hence, businesses can provide seamless assistance as well as privacy and security to customers. Various sectors like finance, e-commerce, gaming, healthcare, and others can use this solution to enhance their processing as well as onboarding. Furthermore, the video KYC is easy and automated.
How Does the Video KYC Verification Technology Work?
Video-based verification uses improved technologies to enhance the process. They range from AI-based face verification to OCR technology. Discussed below is a snapshot of how the AI-powered video KYC works.
- Video-based KYC verification is a two-way live call process. At one end is the customer and on the other is the verifier.
- After signing up on the platform, the customer can initiate a live call with the video expert.
- After this, the customer is asked to align the face, and the video KYC expert starts the interview by asking some questions.
- Moving on, the customer is asked to show their original government-issued documents one by one.
- After the customer shows the ID card, AI-based technology runs the scan and matches the profile photo with the picture on the card.
- The video KYC expert asks questions to make sure the customer is present in front of the camera in real time.
- After all this, the system fetches the results.
Businesses Need a Promising Solution Like Video Verification
Businesses can use video verification for more than one reason:
Seamless Customer Onboarding
To spread their processes, companies try to attract a massive client base. Therefore, businesses and especially the giants are continuously onboarding customers. They can do this directly or with assistance from online service providers.
Securing the Payment Gateways
Video KYC helps the payment gateways to onboard customers as well as enterprises. It makes the process frictionless and minimizes the chances of error, so it speeds up the process. You can also avail yourself of the service of document verification.
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In Europe, Financial Conduct Authority (FCA) is the regulator for the financial sector, similarly, the Gambling committee is for the gaming industry. Likewise in India, there is RBI, SEB, and AMFI, and the rest of the world has similar authorities. These authorities have made it mandatory for businesses all around the world to carry out customer verification. Therefore, video KYC verification has made the process seamless and quick.
Re-schedule KYC Verification
Through video KYC, companies can surpass the barrier that physical verification causes. Furthermore, customers can schedule or re-schedule the process which is a huge achievement.
Video KYC Solution Ensures Customer Due Diligence
The video KYC is linked to regulatory compliance – Strong Customer Authentication. It has the following elements.
Only the customer knows about this because it refers to confidential information. It can either be a password, a personal question, or an OTP.
As the name implies, this refers to what the customer holds in possession. It can be either a drive, generated QR code, or OTP.
Inherence is the customers’ inborn traits. They can be iris, voice, or vein recognition. Furthermore, it also includes facial verification and biometrics.
Businesses that use video-based KYC, consider the above element. The system authenticates at least two of the three above-mentioned elements. This way, KYC plays a crucial role in Customer Due Diligence (CDD). Firstly, it prevents criminal activities, frauds, scams, and money laundering. Secondly, it verifies customers’ identities for secure onboarding.
Video verification connects with the SCA elements, to be more specific; facial matching and biometrics correspond to the third one, which is the inherence criterion. Therefore, video identification of the customers is indeed a robust solution to all the problems that escape manual verification. Furthermore, it has made customer verification more accurate, cost-effective, and less time taking. You can also use the service of KYC AML compliance.
Wrapping things Up
AI-powered video KYC is the new game-changer in the verification processes. It is the surefire method to verify identities for secure onboarding. Video KYC is a business reliable solution to enhance customer satisfaction. This is so because it has replaced paper and manual processes. The central authorities throughout the globe are restricting the regulation to prevent fraud and risks. Therefore, businesses need improved solutions. Video KYC identification is the one. The system identifies the customers by validating two among the three elements. The data recorded so far is stored at the back end and the platforms can access it anytime without having to go through piles of paper documents.
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