Fraudulent cases have increased quite a bit due to technological innovation globally. It has allowed fraudsters to take advantage of breaching systems and utilizing additional techniques. Though digitalization is better for companies in many ways, there are several loopholes in their system, like outdated security devices and poor customer service.
If the boost in fraud cases is overlooked, there will be a damaging hit on the industry. In the digital era, implementing video KYC verification will discourage scams and improve companies’ workflow. Thus, with the use of an advanced video KYC solution, corporations can offer a better experience to their customers.
What is Video KYC Verification?
Video KYC check is an error-free service that rationalizes the procedure of user registration. It stops scammers from breaching a company’s data servers. The latest technology involves the use of smartphones, which are spreading rapidly.
However, facial recognition is already widespread among people to unlock their smartphones and other mobile devices. These devices use dot projectors to scan the face of a user, but in the case of businesses, artificial intelligence helps to meet AML and KYC guidelines, which will also assist them in avoiding hefty fines. Additionally, biometric and facial detection technologies are becoming more useful than ever before. These detection methods provide security and raise market credibility.
During the process of video verification, customers engage in a live video call with a trained verification agent who guides them through the necessary steps. Customers are required to show their identification documents, such as a driver’s license or passport, while also undergoing facial recognition technology to ensure the person matches the provided documents. Video KYC offers a convenient and efficient way to conduct identity verification, reducing the need for in-person visits and paperwork, which in turn accelerates customer onboarding while maintaining stringent security measures to prevent fraud and ensure compliance with regulations.
Advantages of Online Video Verification
Scammers are becoming smarter in bypassing security systems and this is where online video KYC solutions come to the rescue. Here is how video KYC benefits businesses in the digital age: Online video KYC solutions are benefitting many firms, for instance.
Better Time Management
Video KYC is a service where the consumer and the agent can contact in real time and remove consumer drop-offs. On the contrary, a traditional know your customer request takes several days or weeks.
Prevents Money Laundering
A scammer always tries to exploit a system which has weak security mechanisms to achieve its evil targets. Companies running on traditional or outdated security systems give scammers an easy way to hide the source of their money. However, the video KYC system helps organizations easily discourage money laundering, fake financial transactions, and terrorism financing.
Verification of customer location
The application of online KYC service helps the business sector to know the consumer’s location via IP address, ensuring a high level of security for all businesses.
Reduced Manual Review:
While some cases might require manual review, video verification often incorporates AI and machine learning algorithms to assist in the verification process. This can help automate the process and reduce the need for extensive manual intervention.
Document Forgery Detection:
Video verification can incorporate advanced technologies to detect document forgery. This includes analyzing micro-expressions, verifying document authenticity using computer vision, and detecting any anomalies that might indicate fraudulent behavior.
Users can complete the verification process from the comfort of their own homes, using their smartphones or computers. This eliminates the need for them to travel to a physical location, stand in queues, or provide physical copies of documents.
Betterment of B2B relationship
AI-based online video identification systems improve the connection between corporations. With the use of the latest technologies, the credibility of industries can increase in the market as it communicates progress.
Security of Data
Video-based ID validation services enhance data security and discourage scammers, helping companies gain the trust of their customers as well as achieve business profit goals.
Traditional vs. Video KYC
Video KYC is better in many aspects as compared to traditional KYC, for example,
- Video KYC has real-time verification
- Online submission of documents
- It includes artificial intelligence, which makes no human error
- Verification proof is always documented in Video KYC
- There is no error in the authenticity
How Does Video KYC Validation System Work?
Technology modernization has increased security, but Video verification is extremely advanced in verifying a customer’s ID. Video KYC works in a sequence that starts from:
The registration of a customer, after which a KYC expert gets in touch with the consumer for an interview. The consumer then needs to answer the queries for liveness detection and check if there is any manipulation.
After all these steps, the consumers need to show their ID generated by the government, and after finalizing the complete procedure, customers receive the final results.
For more precision, utilizing AI and machine learning is a must because it saves a lot of time and has zero chances of human error. Everything is done remotely, which means that there is no traveling cost.
Video KYC validation systems streamline the KYC process, making it more convenient for customers while maintaining robust security measures to prevent fraud and ensure compliance. The inclusion of technology, such as facial recognition and liveness detection, enhances the accuracy and effectiveness of the verification process.
In today’s day and age, mobile phones are the most popular electronic devices among people. For their data security, biometric authentication is extremely important. Thus, businesses must choose a modern video chat ID verification system to prevent fraud attempts and protect their organizations from harm. Incorporating a video KYC verification solution simplifies the onboarding approach and attracts only actual customers to the organization. Advanced strategies employ 3D liveness checks and anti-spoofing powers to prevent crime. As an outcome, the application of video KYC solutions is a practical strategy for modern industry in terms of sustained expansion and compelling fraud prevention.
Moreover, with the incorporation of video KYC, financial firms can significantly drop consumer complaints and secure the approach of onboarding, which will enhance overall service.