Businesses have undergone essential transformations over the past few years, with digitalization being the most important change. Taking advantage of the global market and reaping its benefits has prompted. To combat the COVID-19 pandemic, businesses have moved their operations online. When it comes to onboarding customers, financial institutions have made the most progress.
Businesses that move to perform online operations need to balance customer satisfaction with security. Which approach is best for ensuring KYC/AML requirements are met while also enhancing the client experience? The video KYC option allows clients to be onboarded in real-time while also adapting to changing regulatory standards.
Conventional KYC vs Digital Video KYC
Know Your Customer (KYC) is a practice of verifying an individual’s identity and identifying any potential threats they may pose. Financial institutions and other businesses that deal with money are required to comply with AML regulations. The traditional method of verifying customer identities involves a physical customer identification mechanism. The procedure can take weeks, forcing customers to stop midway.
The video KYC is a better, simpler, and more affordable version of the conventional identity verification process. It eliminates paperwork in favor of meaningful results, accelerating the verification process as a whole. Customers are no longer required to visit the organizational office to open their accounts and present identification documents. One-click could complete the entire process.
The Need of Video KYC Solution
Although video KYC verification is currently a hot topic, it is not an exaggeration to say that it is the market’s main driver of expansion. Video KYC validation is an ideal solution in this scenario since it makes the identification process more effective and cost-effective. As well as making the operations more efficient at a lower cost.
In today’s digital age, the threat of cybercrime has become a pressing concern for businesses, and video verification is a highly effective means of preventing scams. A variety of identity fraud are prevented by the video KYC of business clients, including:
Forged Identity
Due to customers’ appearance as a form of deception to trick a business, identity fraud are among the hardest to detect. Criminals combine false information with real information, such as social security numbers, to create believable personas.
It is difficult to detect these counterfeits in the early stages of fraud, but video KYC verification technologies can now detect them quickly, preventing further fraud.
Spoof Attacks
As businesses are moving towards digital communication, con artists are getting better at using spoofing attacks to reveal their malicious motives. Intruders use fake or forged identities to trick and get around verification processes.
This type of document and face spoofing assault is challenging to identify. With the help of video KYC verification, which combines human and computer intelligence, spoofing attempts are quickly identified.
Deep Fakes
Motion pictures created by a deep learning algorithm are known as deep fakes. They are made with the intention of tricking technology and gaining access to personal information.
Using deep fakes in facial verification, fraudsters may be able to avoid identity checks. More robust video KYC verification is required because it’s hard to find any difference between these videos and real ones.
The Video KYC Service Checklist
The best AML solution for the business will only be selected after thoroughly researching its features and functionalities. While choosing video KYC for your business, keep in mind the following:
Coverage Range
Services are now readily accessible worldwide thanks to digitization. Therefore, pick a video KYC that offers worldwide coverage. Additionally, it supports various document formats and languages.
Cost-Efficient
A great user experience should be maintained while the KYC solution works to reduce the overall costs of the KYC process.
Corporate Security
It must handle the client’s private information with the utmost care to prevent identity theft or data breaches. This process can also be implemented on website security, whenever a customer makes a purchase online.
Omnichannel Engagement
In order to enhance the customer experience, omnichannel engagement and authentication should be provided. So, that customers can verify their identities without switching channels.
Customized Solution
The requirements of each company should be considered when designing a KYC because different industries have different standards.
In Summation
Businesses are working to enhance their online offerings in an effort to meet changing customer expectations and prosper in the digital era. Video KYC is thus a widely used technique in the verification market.
Utilizing this service will help businesses shorten KYC turnover time and streamline their hiring process. Video KYC verification is anticipated to be used in a wide range of industries. In fact, many businesses have already started using it for client onboarding. It assists organizations in ensuring fraud-free user onboarding when used in conjunction with a real online document verification solution.
Keep reading the article at WPblog. The article was originally written by Hussain on 2022-09-06 08:17:18.
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