Time is the most precious asset in this
modern age. The world is in continuous search of more time-efficient ways of
working and dealing. Businesses are adopting procedures that can cut their time
and provide seamless services. Account opening in financial institutions like
banks have a business procedure is an irritating and lingering task. Banks had
to arrange multiple meetings for a single customer onboarding. Now they have
made it possible to verify a customer’s identity without a physical meeting.
Video Identification
Video identification is also known as video
KYC performs all the necessary checks for account
opening through a video call. It conducts all know your customer verification
in one video call. A KYC expert accompanies the video meeting with the
customer.
KYC Expert
A person that identifies and verifies the
customer’s identity. Generally, a KYC expert inspects and analyzes documents,
performs screening, and classifies high-risk entities. In some organizations, a
KYC expert is known as KYC Analyst.
Here is a brief description of how
financial institutions verify a customer through video identification:
●
The customer gets register on the website
●
Provides all his personal and financial
information
●
Connects with a KYC expert on a video call
●
Presents his documents
●
KYC expert performs all the necessary
verifications and checks
●
Video verification results are shown to the
user and stored in the database
All types of verifications are done in
video verification for instance:
Face Detection Online
KYC expert confirms the identity of the
customer through his id documents and life’s presence. The image on the id
document is matched with the customer’s face. The name, DOB, and national
identity number are confirmed through the data on the document. The address of
the customer is verified through recently issued address documents. The address
documents must be issued within three months from the day of KYC verification.
Document Verification
The documents are verified by KYC experts
through AI and ML. The software examines the genuineness of the documents.
Fraudsters try to verify themselves by using fake and photoshopped documents.
In the video identification process, it is very difficult to do because the authenticity
is marked by humans and software.
The verification of financial documents
like bank statements and tax returns is also done in this process.
Liveness Detection
The liveness of the customer is verified
through multiple checks to kill the chances of deep fakes, pre-recorded videos,
3d masks, and holograms. KYC experts analyze the facial feelings and body
language of the customer for that. He also asks questions to interact with the
customer for video identification.
There are cases where scammers try to
deceive the video verification system through pre-recorded videos. But the
extended technology can easily detect any type of fraud attempts.
Advantages of Video KYC
Faster Onboarding
As discussed earlier the traditional
verification procedures were very slow. A single customer verification takes
days but through video identification, a customer can be verified in minutes.
Remote Verification
The most disturbing task was to schedule
multiple visits of the customer. The business has to arrange more than one
meeting with the customer. It was a very unpleasant task for employees also,
they have to manage their workload while verifying new customers. Video
verification verifies a customer remotely. No need to visit the office or no
time restriction in video KYC verification.
Resource Efficient
Traditional KYC verification was very
costly. Employees have to manually check the documents and identity of the
customer. Organizations were obliged to hire multiple employees as one employee
can verify only one customer at a time. This takes huge resources of the
businesses, with video KYC the rescues can be reduced greatly.
Proof of Verification
The customer verification video is recorded
and can later be used as proof of verification. This helps both customers and
businesses, before that they do not have any proof resulting in recurring
verifications.
The video
verification security is ensured by storing it in a secure
database.
On a Final Note
Financial institutions have to conduct
solid customer verification as required by global watchdogs. All businesses can
comply with this requirement through video identification. The digital
interface is user-friendly giving the best customer experience. The
verification results delivered in real-time, making business faster. Businesses
should go for video verification to streamline their procedures.
