With the current dynamism in society, organizations are always on the lookout for ways and means of improving compliance and eliminating fraud before engaging their customers. One of the revolutionary solutions to banking technology is video KYC verification software. One is that this technology helps business organizations meet regulatory obligations and, secondly, that it offers clients a smooth and right experience.
What is Video KYC Verification?
VKYC is a process that is adopted by financial institutions and other ventures to deal with clients and customers and involves a live stream to confirm the identity of the clients. This process is an actual-time conversation between the customer and the company's representative, where the existence and real-time authentication of the purported customer through the presentation of identification credentials are done.
It is a new means of onboarding that integrates online registration with the possibility of face-to-face authentication.
The technology cuts out the time that the customer has to go to a branch or office in order to complete an identification process.
Requirements during a KYC are that the customer has to share the formal identification documents and demonstrate specific actions that confirm his or her identity; for example, the customer turns to the camera and demonstrates the face and ID card.
The call is recorded and saved in the company’s records for compliance purposes.
Finally, it suggests that the incorporation of video KYC into the customer onboarding processes will improve their efficiency while satisfying the demands of existing legislation.
It ensures a fast and safe means of confirming the identity of customers, and also ensures that the experience offered to them is satisfying.
Importance of Compliance
Adherence to KYC laws is mandatory for endeavors, especially for commercial organizations and firms operating within the finance industry. Sanctions for non-compliance include fines, legal consequences, and a tarnished reputation for the company. The technology can be used to enhance compliance since it offers organizations an efficient way of confirming customer IDs.
Advantages of the Video KYC Verification Software
- Enhanced Security : Video KYC makes the process a bit more secure because you are certain that the person presenting the documents is the same person on the call. This minimizes instances of identity theft and fraud.
- Cost-Effective : The conventional models for performing KYC are tedious and are rather resource-intensive. It can significantly lower the cost as it eliminates the need for physical verification, meaning that one will not need to travel to the address, employ more manpower, or deal with lots of paperwork.
- Faster Onboarding : VKYC gives a real-time response to the verification process and thus reduces the time it takes for customers to onboard. It not only satisfies clients but also has disorganized and efficient work as a result of executing its organizational goals.
- Global Reach : Since VKYC allows the identification of the client at a distance, it eliminates geographic restrictions and increases the client’s base.
- Regulatory Compliance : Video-KYC verification software is usually developed with a recommendation of the set regulatory policies, hence the development of legal recommendations for local and international KYC.
Steps for the Verification Process
The process of video-KYC verification typically involves the following steps:
- Customer Initiates the Process : Starting the KYC process, the customer enters the company’s site, goes to the Video Identification section, and chooses the Video KYC option.
- Document Upload : The customer also scans their identification card, like a passport, driver’s license, or national identity card, and uploads it on the platform.
- Scheduled Video Call : The customer sets an appointment to have a video conference with an agent. In this call, the representative confirms the identity of the customer and asks him or her several questions touching on the identity documents.
- Liveness Check : To check if the customer is actually captured physically, the software then conducts a liveness examination . This might mean that the customer is asked to move their head or blink in order to confirm that the conversation is not recorded.
- Verification Complete : Upon completion of this process and successful verification, the details of the customer are saved in the company’s records, and the client is notified that the KYC process is complete.
Trends and Innovations for Video-KYC in the Future
The advancement of video-KYC technology is always dynamic, with new trends and innovations in technology likely to define the future. New tendencies are based on the application of artificial intelligence and machine learning techniques to increase the reliability of identity verification results.
Another trend is the use of video KYC with other kinds of identification, like biometrics and blockchain. This integration makes the process as a whole safer and more secure, since the end result is fully verified. In addition to this, the utilization of video-KYC is likely to rise in the future as more countries embrace it the same way it is embraced in industries.
Besides, the other regulatory authorities have also adopted video-KYC as a proper method of identification and authentication.In general, this study finds that the development of video-KYC technology has a positive outlook for the future, with more enhancements and developments in store in the future.
Conclusion
KYC verification software is one of the most effective solutions for compliance improvement, fraud prevention, and customer identification . Thus, besides meeting the requirements set by regulators, the utilization of such a technology will help a business deliver a smooth and positive experience to its clients. Thus, video KYC verification is set to become an important tool for developing future trends in customer identification.