As restrictions persist in various regions, the banking and finance sector is witnessing a significant pivot towards digitalization. In January 2020, the Reserve Bank of India (RBI) made pivotal amendments to Know Your Customer (KYC) norms, empowering banks, fintech firms, and lending entities to conduct KYC processes remotely via live audio-video interfaces.
The Video KYC market soared to USD 212.68 million in 2022 and is expected to keep growing rapidly with a 15.3% CAGR. This indicates increasing demand for Video KYC solutions in various industries. It shows that Video KYC is trusted for identity verification, becoming a go-to choice for businesses.
Enter Video Interview KYC, or "Know Your Customer," swiftly gaining momentum as a means for financial institutions to authenticate client identities from afar. Envision a secure video call, akin to a virtual face-to-face meeting, where you engage with a dedicated KYC agent. Throughout this session, the agent skillfully poses targeted questions to verify your identity and deter any potential fraudulent activities. This innovative approach combines the convenience of remote interaction with the diligence of identity verification, ensuring a robust and secure process tailored for today's digital landscape.
Here's where technology shines: alongside the video call, you securely upload digital copies of your official identification documents, such as a passport or driver's license. The KYC agent meticulously compares these documents to your live image on the video screen, ensuring precise alignment. This fusion of video interaction and document verification ensures a thorough and secure identity verification process, all conducted remotely for your convenience and safety.
Types of Video KYC
Enterprises have the opportunity to incorporate video into their KYC procedures through various approaches. Among the most prevalent tactics are:
Assisted Video KYC
Assisted video KYC, also known as Video-based Customer Identification Procedure (VCIP), is a way to verify your identity electronically for things like opening a bank account or investing online. It's kind of like a video call meets ID check. You will connect with a real person over video chat, usually a company representative, and they will guide you through the process. During the video call, they might ask you to show your id for a close-up view. You might also be asked to do a simple head turn or blink – this proves you're a real person and not a static image. While it may feel a little unusual, these steps are crucial for preventing fraud and identity theft. By confirming your identity, they ensure secure transactions and protect your information. The best part? You can complete this process from the comfort of your own home.
Non-Assisted Video KYC
Non-Assisted Video KYC, also known as Self KYC, is a simplified way to verify your identity electronically without needing a live person on the other end. Imagine skipping the trip to the bank or battling with scanners! This process typically involves you recording a video of yourself holding your ID documents and following on-screen prompts. These prompts might ask you to blink, turn your head, or answer random questions – all to confirm you're a real person and not a photo or deepfake. The system then uses fancy technology to scan your documents and match them to your face in the video. If everything checks out, voila! You're verified. It's a faster, more convenient option for both you and the company, especially in low-risk situations.
Understanding the Video KYC Process
Video KYC offers a secure and convenient solution for remote identity verification. Here's how it usually works:
- Starting the Call :You'll begin by scheduling a video call with a KYC agent through the institution's secure platform. This call is like a virtual appointment for verifying your identity.
- Working with the Agent :The KYC agent is there to guide you through the process. They'll ask questions to confirm your identity while also requesting specific information or documents as needed.
- Sending Your Documents : Along with the video call, you'll be asked to upload digital copies of your ID (like a passport or driver's license). These go directly to the agent for review.
- Checking for Matches :The KYC agent takes a close look at your documents and compares them to what they see on the video call. This ensures everything matches up and that you are who you say you are.
- Verification Complete : Once the agent is confident in your identity, they'll wrap up the KYC process. You'll get a notification that everything went smoothly, and you can start using the service you needed to verify for!
Important Notes
Security is Key: Video KYC has strict security measures in place to protect your information. Everything from the video call to the document uploads is encrypted, and only the right people will have access.
Following the Rules: This process is designed to follow regulations set by financial and governing bodies. This keeps things secure, prevents fraud, and protects everyone involved.
In short, think of Video KYC as a blend of personal interaction and smart technology. It helps you prove your identity from the comfort of your own location while still upholding top-level security standards.
Difference between Traditional KYC and Video KYC
Traditional KYC
- In-Person :This process centers around physically visiting a branch or office. You'll need to meet face-to-face with an authorized representative
- Documents :You'll bring your original ID documents (passport, driver's license, etc.) with you. The representative examines them closely and may make photocopies.
- Time Factor : Traditional KYC can be time-consuming due to potential travel, wait times in the office, and the manual nature of the verification process.
Video KYC
- Remote :The biggest shift is that you complete Video KYC from anywhere with a stable internet connection and a device with a camera. You won't need to go into a physical location.
- Live Interaction :Instead of an in-person meeting, you'll connect via a video call with a KYC agent. They'll still guide you through the verification process.
- Digital Documents : You'll show your ID documents to the camera during the call and likely be asked to upload digital scans or photos of them.
- Efficiency :Video KYC generally speeds up the process. Its remote nature eliminates travel and some of the manual steps, often resulting in faster verification.
OVDs required for Video KYC verification
In India,Video KYC verification relies on a set of officially valid documents (OVDs) to confirm your identity.
- Passport :This is the most universally accepted OVD for Video KYC. It provides clear photo identification and address proof.
- Driving License :A valid driver's license with your photo and address serves as a suitable OVD, though some institutions might prefer passports for higher security.
- Voter Identification Card : A government-issued Voter ID card with your photo and residence details is another widely accepted option.
- PAN Card :While not solely sufficient on its own, a PAN card can be used in conjunction with another document on this list, like your Voter ID, to fulfill both identity and address verification.
- Aadhaar Card :This unique ID issued by the UIDAI is gaining traction for Video KYC. However, its acceptance might vary depending on the institution's specific requirements. It's always best to check in-advance..
In countries other than India, when you go through Video KYC with us, you'll only need to present the official documents that are recognized for identification purposes in your country. We'll have a clear list available beforehand so you can prepare accordingly.
What are the advantages of Video KYC
Advantages for Customers
- Freedom from the Office : Say goodbye to squeezing KYC appointments into your workday or taking time off for bank visits. With Video KYC , you verify your identity on your schedule, even from your couch.
- No More Waiting :Think of it as the fast lane for onboarding. With Video KYC, those lengthy waits for verification are a thing of the past. Get approved quickly and start using services right away.
- Access for Everyone :Video KYC breaks down barriers. If you live far from a bank branch, have limited mobility, or juggle a tight schedule, this opens up financial services that might have felt out of reach.
Advantages for Businesses
- Saving Money, Serving Customers : Video KYC means less time and money spent on in-person processes. That can mean better deals, better service, or both for customers.
- Keeping Things Smooth :Automation and faster processing let businesses serve more customers efficiently. That means fewer bottlenecks and a streamlined experience for everyone.
- Fighting the Fakers :Live video calls and smart analysis tools make spotting fraud and inconsistencies way easier than with just paper documents. This helps trustworthy customers get verified quickly while keeping bad actors out.
Overall Benefits
- Happy Customers = Happy Businesses: When getting set up is a breeze, customers are more satisfied. This boosts the reputation of the business and fosters loyalty.
- Playing by the Rules : Video KYC isn't just convenient; it's designed to help organizations stay on the right side of regulations. This protects both businesses and their customers.