The Video KYC verification enables firms to recognize the authenticity of the customers without displeasing them by taking too long.
For establishing a small or large organization, other than expertise, focus, and persistence, identifying the right individual/customer for the association has been extremely important since Adam and it will always be.
With the ever-increasing technological advancements, consumers require online services from businesses and have become way more impatient. Any purchase or transaction taking a bit long turns them off and makes them shift to the competitor firm.
So what is a verification video? The Video KYC (Know Your Customer) verification enables all types of organizations to test and recognize the authenticity of the customers without displeasing them by taking too long.
The process involves a verification expert interviewing the other person where the individual is asked to provide proof of his/her ID documents such as a photo-based national ID card, passport, or driver’s license, proof of residence, and related things. The video KYC expert examines the end-user along with the presented records.
How Does Video KYC Process Begin?
This is usually the end phase of verification procedures; post confirming basic Id documents and proof of address, at last, the agent arranges a video call for absolute confirmation and cross-checks the initially provided information by the user like embassy and visa interviews.
The user has to follow a series of simple steps:
- The person registers himself/herself on a particular platform by filling out necessary details like name, age, DOB, current address, and relevant data
- In this mode In video KYC, the agent interviews the user, on a video call confirming him/her being genuine by observing some facial traits and specific characteristics. This phase usually confirms the origin location of the user by witnessing the appearance and accent
- The OCR in video KYC model here digitally captures the available data on Id documents and then it gets matched against regional and national records, validation of presented information takes place in mere few seconds
- The verification results are generated and stored in the back office of the platform or business
Models of Video KYC Verification
There are a couple of options in the video verification process:
- Local KYC Expert
The businesses can hire a bunch of KYC agents coming from different nationalities and regions by keeping the target market and already associated profiles in mind so the customers can feel comfortable during the video KYC.
- KYC Agents within The Organization
For a better and cost-effective way, the company or institution can recruit suitable people for verification purposes from them as well. This helps in upscaling the execution of Customer Due Diligence (CDD) operations.
- Self-acting Video KYC Verification
The process becomes more accurate and trustable in this option. The organization can create an automatic artificial intelligence-based verification process, where the person’s identity gets verified through chat supported by the AI model deployed in the solution, and the documents and records of a person get authenticated post-haste.
Importance of Video KYC in AML screening
In September 2020, a case was disclosed including names of some prominent international banks such as Standard Chartered and JPMorgan Bank where a whopping amount of almost $2 trillion was reported to be sanctioned to rogue groups and terrorists for a very long time. All of this destroyed their reputation and credibility in the financial market, a nightmare of every single entity out there which gets easily prevented by video KYC verification.
Synthetic ID Frauds
With the advent of the internet and advanced technologies, somehow ease has been created for professional scammers and cybercriminals as they are hitting some pretty big numbers, a total of $1.8 billion was lost to Id fraud in the U.S in 2020 and if it keeps happening at the current rate, then after three years amount is expected to be around $2.42 billion due to lack of efficient video KYC services.
Deep Fake Technology
This is commonly used technology by fraudsters and hackers these days to get access to a system or database. It was initially introduced to the masses through the entertainment industry where the studios and production houses used it to create mimicries of individuals.
Now it can be used to steal valuable information from confidential databases by deceiving the security systems. It enables scammers to create fake videos which are hard to differentiate. The blend of AI and human verification in video KYC eliminates all gaps as both compensate for restrictions of each other and ensure a rapid and seamless end-user experience.
With online scammers and criminals getting equipped and proficient in their tasks, the need for efficient Video Verification is prominent in almost every industry. Firms want to increase customer onboarding along with complying with KYC/AML laws, eliminating risk, and not dissatisfying their consumers, all of this is impossible to achieve without a video KYC solution. It helps in the enhancement of business and acts as a shield for them.