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
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This article was written by Hussain and originally published on WPblog.