No business is immune to the risk that comes with transacting with new customers. In fact, for any enterprise, this risk can be quite high. It's often difficult to know what a new customer is like or whether they will follow through on their commitments. Even if a business has done its due diligence and screened potential customers, there is always some element of risk in doing business with them. Due to the nature of their existence, banks, financial services, and insurance (BFSI), retail, health, and business ordinarily experience greater risks because of dealing with new customers. Banks are especially susceptible to fraud. One of the most important aspects of running a business is mitigating risk. This involves undertaking due diligence processes to ensure that potential risks are identified and addressed before taking on new customers. In the case of customer onboarding, businesses need to take steps to verify the identity of new customers, check for any criminal or financial history, and assess the risk posed by doing business with them.
To ensure the legitimacy of your customers and protect your business against fraudulent activities, it's important to implement a Know Your Customer (KYC) verification process. KYC verification involves identifying new customers and verifying their authenticity, usually via government-issued identity documents. This process helps businesses prevent criminals from using their platforms to commit fraud or money laundering. It can be difficult for a company's executives to meet new customers in person and verify their documents. However, scheduling these in-person meetings can be inefficient, especially in the current times. The executives can use video conferencing to meet with the new customers and verify their documents. This will save time and allow the executives to focus on other important tasks.
In these digital ages, there is a need for more efficient methods of customer identification and authentication. Conventional methods, such as in-person verification and paper documentation, can be slow, costly, and prone to error. Video KYC helps businesses overcome these inefficiencies by allowing customers to be identified and authenticated remotely. This technology uses video conferencing to verify the identity of a customer, which can reduce the time and cost of onboarding new customers. A greater quantity of people accepted information digitally, too, which assists the adoption of the KYC tool. Here are some interesting facts about the recreational use of video KYC.
businesses need to offer a quick and easy customer onboarding process. By reducing the amount of time it takes to become a customer, businesses can improve customer satisfaction and encourage more customers to do business with them. To reduce the amount of time it takes to onboard new customers, businesses should consider streamlining their processes and automating as many tasks as possible. Data analytics capabilities while customer onboarding digitally.
The average company loses about 20% of its customers in the first 90 days of doing business with them. This number can be drastically reduced by using data analytics to personalize the customer onboarding process. KYC includes a video-based artificial intelligence and machine learning platform that facilitates analytics and provides an innovative alternative to the entire process. Data analytics can help identify customer needs and preferences, which can then be used to create a more personalized experience for the customer. Additionally, data analytics can be used to track customer interactions and preferences over time, so that any changes in behavior can be identified and addressed.
The importance of protecting the identification data of all external stakeholders, be it a buyer, a student, or someone looking to access financial services, has gained significant importance in recent years. The number of data breaches and cyber-attacks has led to a heightened awareness among individuals and organizations about the need for data security. This has led to the development of new technologies and best practices that can help protect the identification data of all individuals. Video KYC files ensure the protection of confidential information, in contrast to traditional KYC files, which are vulnerable to theft and misplacement.
To comply with KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations, financial institutions require their customers to verify their identity by submitting physical copies of their identification documents. These documents are then shared with third-party KYC agencies, who compare the customers' information against government databases in order to ensure that the customer is who they say they are. Video KYC processes offer real-time verification. This can be a huge benefit for companies that need to verify the identities of their customers quickly.Video KYC solution that captures the image of the identity document is a smart way to go. It not only ensures accuracy but also provides an added layer of security. By taking a picture of the ID, you can be sure that the person opening the account is who they say they are. And if for some reason the photo needs to be compared to the document, it can be easily done. Instant verification of documents is a process that has been made possible by the use of real-time comparisons with government databases. By using this technology, individuals and businesses can instantly verify the authenticity of a document. The process is simple and takes only a few minutes to complete. Increased security and efficiency, video KYC can also help BFSI or health organizations across industries to reduce costs associated with traditional identity verification methods. This is to find ways to improve their bottom line and achieve a higher return on investment (ROI). One way to do this is through the use of business process automation (BPA). Automating business processes can not only enable seamless customer onboarding but also lead to efficiencies across a wide spectrum of business processes, contributing to better ROI and profitability. The adoption of new technologies has been shown to improve customer experience and make organizations more future-ready. For example, consider the case of online banking. By adopting new technologies, banks have been able to offer their customers a more convenient and user-friendly experience.