In today’s fast-evolving digital landscape, financial and customer-centric industries are rapidly shifting to remote-first processes. Among these changes, Video KYC (Video-based Customer Identification Process or V-CIP) has emerged as a game-changer—streamlining identity verification while ensuring compliance, security, and convenience. Whether you're a bank, fintech platform, or service provider, understanding how Video KYC works and why it matters can help you build better onboarding systems that are fast, secure, and fully compliant.
What is Video KYC?
Video KYC is a digital method that allows businesses to verify customer identities remotely through a live video session conducted by a trained KYC officer. This replaces traditional in-person verifications and physical paperwork with a fast, contactless, and secure digital process—available anytime, anywhere.
The shift toward remote verification accelerated during the 2020 pandemic, and Video KYC became a preferred solution for organizations striving to ensure both regulatory compliance and a smooth customer onboarding experience.
New to Video KYC? Start with our step-by-step guide to how Video KYC works.
Benefits of Video KYC
Enhanced Customer Convenience
Customers can complete verification from the comfort of their home—eliminating the need to visit physical branches. This ease-of-use significantly reduces drop-offs during onboarding.
Operational Efficiency and Cost Savings
Automating the KYC process minimizes the time, manpower, and resources required. This leads to faster onboarding and reduced operating expenses..
Improved Security and Compliance
Video KYC platforms are built with encryption, real-time document validation, and geo-tagging to meet compliance requirements such as RBI’s V-CIP and global AML/CDD regulations.
Fraud Prevention
Using AI-powered tools like facial recognition and liveness detection, Video KYC helps verify users in real time and detect impersonation or deepfake attempts.
Looking to implement the right platform? Learn how to choose the best Video KYC solution for your business.
Key Use Cases of Video KYC
Video KYC is transforming identity verification across several industries. While the process remains consistent, its implementation can be customized for various operational models.
1.Banking and Financial Services
Used for onboarding savings account holders, loan applicants, and credit card customers with minimal turnaround time and full compliance.
2.Fintech Platforms
Fintechs integrate AI, OCR, and liveness detection to offer seamless digital onboarding and meet regulatory norms.
3.Insurance Companies
Video KYC is used for verifying applicants during policy issuance and claim processing, improving transparency and fraud protection.
4. E-Commerce and Payment Gateways
Used to onboard merchants securely by validating identity, compliance, and transaction behavior.
5. Gig Economy and Logistics
Helps onboard delivery partners and staff through contactless identity checks—improving speed and reducing risk.
Dive deeper into real-world use cases of Video KYC across .
How Does Video KYC Work?
Here’s a step-by-step look at the standard Video KYC process:
Partnering with Advanced Verification Solutions
To fight the growing threat of document fraud, businesses must use the latest verification solutions. Platforms like Pixl offer AI tools. They can identify fake documents in 240+ jurisdictions. These solutions enhance security, streamline onboarding, and minimize operational risks.
1.Video Call Initiation
A secure link is shared with the customer via email or SMS to join a live KYC session.
2.Live Interaction and Identity Check
A KYC officer asks verification questions while the customer displays their ID document on camera.
3. Face Match and Liveness Detection
AI verifies the live face against the ID photo and checks for liveness to prevent spoofing.
4. Document Verification
AI verifies the live face against the ID photo and checks for liveness to prevent spoofing.
5. Completion & Confirmation
After successful verification, the customer receives confirmation, and all data is securely stored.
6. Compliance Logging
After successful verification, the customer receives confirmation, and all data is securely stored.
Read our full walkthrough of the Video KYC process with visuals and implementation tips.
Understanding the Difference: Video KYC vs KYC Verification Mode
Verification Mode
Video KYC: Done via live video call.
Traditional KYC: Requires in-person visits.
` Document Handling
Video KYC: Documents are uploaded and verified digitally.
Traditional KYC: Involves physical document submission and manual checks.
Turnaround Time
Video KYC: Typically completed within 2–10 minutes.
Traditional KYC: May take several days to weeks.
Customer Experience
Video KYC: Seamless, fast, and fully contactless.
Traditional KYC: Manual, time-consuming, and involves waiting.
Cost Efficiency
Video KYC: Low operational costs due to automation.
Traditional KYC: Higher costs driven by staff, paperwork, and logistics.
Scalability
Video KYC: Easily scalable.
Traditional KYC: Constrained by branch network and physical resources.
Regulatory Compliance
Video KYC: Adheres to modern regulations like V-CIP, AML, and CDD.
Traditional KYC: Follows legacy compliance processes.
Regulatory Requirements: RBI’s V-CIP Guidelines
To maintain integrity and safety in the remote onboarding process, the Reserve Bank of India (RBI) has issued the V-CIP (Video-based Customer Identification Process) framework. Here are key compliance components.
Secure Technology Infrastructure
- Hosted on the organization’s own servers.
- Data stored securely within India.
- Encrypted networks and restricted third-party access.
- Speed and Accuracy: Automated OCR reduces manual errors. It speeds up processing and ensures high accuracy.
End-to-End Encryption and Consent
- Complete data encryption.
- Customer consent is mandatory and recorded.
Geo-Tagging and Facial Matching
- GPS location capture during video call.
- Facial recognition and liveness checks required.
Monitoring and Auditing
- Each session is logged and reviewed.
- Comprehensive audit trails are maintained.
Leran more about RBI’s V-CIP compliance checklist
Key Takeaways
- Fast Digital Onboarding
- Regulatory Compliance
- Secure and Scalable
- Cross-Industry Use
Video KYC eliminates delays by enabling instant remote verifications.
Meets RBI, AML, and CDD standards for digital identity verification.
Backed by AI, OCR, and biometric technologies.
From banks to gig platforms, Video KYC adapts to varied needs.
Want to learn how to implement Video KYC efficiently? Read our guide on Video KYC implementation best practices.
Conclusion: The Future of Onboarding is Video-Enabled
Video KYC is reshaping how organizations onboard and verify customers—bringing together convenience, security, and compliance in a single seamless process. As digital transformation continues to accelerate, adopting a reliable and efficient KYC system becomes essential.
At Pix Dynamics, our AI-powered Video KYC solution is built to support secure document verification, real-time face match, and regulatory compliance—all while providing a smooth user experience.
Ready to take your onboarding digital? Contact us today to explore how Pix Dynamics can help you deploy a secure, scalable Video KYC system.