Did you know that a new cyber attack occurs every 39 seconds and that 64% of the enterprises across the globe face cyberattack at least once during their business journey?
So what can enterprises do to deter these evolving fraudulent activities and cyberattacks on personal data? Video KYC is a promising solution.
If your enterprise permits contactless customer onboarding, you’ll have a competitive advantage and reduce operational costs.
Let’s explore the benefits of Video KYC and ways to incorporate it into your enterprise.
What is a Video KYC?
A “Video Know-Your-Customer”, better known as Video KYC, is aprocedure as the name suggests, is an effective yet automated customer due diligence process on the basis of the video. This process involves digital KYC via video call for the purpose of frictionless customer onboarding. Video KYC permits customer authentication by utilizing machine learning, OCR (Optical Character Recognition) data extraction, and face verification techniques in real-time.
Video KYC authentication is now required for numerous forms by regulators, such as VBIP for insurance companies, V-CIP for banks, and VIPV for SBI registered intermediaries.
Video-based KYC processes and solutions are evolving all across the globe due to high customer demands for digital methods to avoid physical contact in the post-COVID-19 virtual world.
Video KYC enhances cybersecurity protocols of enterprises and fights malicious activities.
How does a Video KYC verification process work?
A Video KYC process is not very different from traditional KYC. It refers to video calls as the medium of conducting the KYC verification procedure. In this process, users are required to confirm their identities during the video call by presenting valid identity document proofs. Video-CIP permits the omnichannel customer consultation where document verification and face verification are conducted via video call.
Here’s how a video KYC is carried out:
End-user is required to register to a certain platform by entering his credentials.
End-user gets on a live video call with the KYC expert.
End-user is interviewed by the KYC expert.
End-user presents his official identity documents to the KYC expert during the video call.
Presented documents are verified to ensure they’re authentic.
End-user on the video call is matched with identity documents pictures.
Lastly, verification results are delivered to the required organization or end-user.
Advantages of Video KYC
AI-powered Video KYC solutions and services can have several advantages to all sorts of enterprises, especially the fintech industry.
Fast, effective, efficient onboarding process of customers with the help of artificial intelligence (AI) and cognitive technology.
Recorded interactions for the future.
Flexible and possible any time and anywhere.
Reduces the customer onboarding cost by 90%.
Turnaround time is a few minutes compared to earlier 2-3 day turnaround time.
No tedious manual paperwork and less human error.
Detects and prevents identity theft, counterfeits, chargebacks, money laundering, and other sorts of relatable fraudulent activities.
How to use a Video KYC in your business
From banks to NBFCs, from insurance companies to stockbrokers, from e-commerce to payment gateways, a video KYC can be utilized across all financial sector enterprises. Here are some interesting use-cases of a Video KYC.
Payment gateways: onboarding organizations and businesses is presently a painstaking procedure for payment gateways in another digital ecosphere. Thanks to video KYC that makes the process frictionless, permitting payment gateways to onboard small as well as medium enterprises in a matter of hours or even minutes instead of days.
Staff contracting: The logistics sector is constantly onboarding contract staff. This can be either done directly or with the assistance of staffing companies.
Re-KYC for trading accounts: The trading industry can use this to reduce their reignited or when they have free time. In this situation, physical KYC for the reactivation is a huge barrier, and this barrier is surpassed with the help of video KYC.
Regulatory compliance: Enterprises in India regulated by RBI/SEBI/AMFI regulations need in-person verification which can thankfully be achieved by webcam and video-based customer identification programs.