KYC is a fundamental part of a customer onboarding process. With time this process has evolved as companies have started leaning towards digital onboarding catalysed by the pandemic. Video identification is the most recent and advanced way to instantaneously carry out the KYC process.
The entire business world is in the process of shifting operations online to keep up with changing trends and remain relevant to the consumer market and reap the benefits. Financial institutions and banks have taken a significant leap in their customer digital onboarding process in all industries.
Going digital is not the most straightforward process unless backed by robust and secure technology. With digitisation comes the need to strike a balance between customer experience and security. The digital onboarding solution adopted requirements to comply with the ever-changing KYC/ AML regulations while providing an enhanced user experience. Video KYC is an example of a solution that offsets the balance by ensuring real-time customer onboarding while complying with the regulatory landscape.
What is Video KYC?
Knowing your customer is a mandatory process to authenticate the customer’s identity and recognise any likely risk associated with the customer. KYC is obligatory for banks, mutual funds, insurance companies, financial institutions and every company that deals with money to comply with KYC/AML regulations.
Video KYC is performing the ‘Know your customer’ verification process via a video call supported by a KYC agent. This is different from the traditional KYC process as it does not require the person to be physically present. Video KYC is the digital version of the conventional KYC process done manually. It took almost up to two weeks, which was why many customers abandoned it halfway.
The Video CIP (customer identification process) is more secure, faster and cost-effective. Video KYC solution eliminate the need for paperwork and streamline the end-to-end verification process giving real-time results. Customers are not required to physically visit the branch or company office to submit their identity documents and open accounts. Right from customer registration to customer onboarding, everything can be done virtually.
How does Video KYC work?
Step 1: The person who needs to undergo the KYC process registers on the platform.
Step 2 – They get on a live video call with the KYC expert
Step 3 – For liveness detection, the KYC experts ask the applicant/ customer a few questions, like an interview of sorts
Step 4 – The customer/ applicant shows their identity document during the video call
Step 5- The document is authenticated against tempered or forged elements
Step 6 – The applicant/ customer’s face is matched with the face on the identity document (NID) provided by them
Step 7 – The video KYC solution software delivers the verification result report real-time.
Video KYC solutions digitise the end to end customer onboarding journey with cutting edge technologies such as liveness detection, Optical Character Recognition and geotagging capabilities, which add scale, speed and security to the customer’s digital onboarding procedure. Video KYC solution can help companies save operational cost by up to 70% and reduces the KYC TAT by approximately 90%. Companies across sectors can benefit from video KYC solutions to catch identity frauds, prevent financial scams, improve operational efficiency and augment customer experience.