KYC compliance is a necessary check for every authority to get a better understanding of their customers. It prevents frauds and scams that mistreat the system and cause the failure of operations across multiple business processes associated with the platform.
Recent statistics show several thousands of identity theft scams that disturbed the functioning of online systems.
According to CNBC, the people of the United States of America suffered plenty of losses with the amount of nearly $56 billion in 2021 due to identity thefts online. This statistic proves that the fraud of identity has greatly increased over the years. If we compare it with the figures of the previous year 2020, there is a 45% rise in this criminal activity of identity theft.
Prevention of this problem is a must as it is creating havoc among businesses and online societies. Many measures are being taken among different users and their associated firms for the reduction of identity theft, especially in online systems of interaction.
The KYC process has evolved into multiple assessment methods for customer verification. One of the methods is video KYC identification. Video KYC is a better option for KYC regulation checks.
What is Video KYC?
The video identification method is a KYC verification technique in which the customer is verified by video proof. In simpler terms, the video KYC solution involves a real-time identification of the customer by a video KYC agent who is responsible for the customer verification process of the client. This method works through a live video call between the agent and the client in which the identity and other aspects of the verification process such as documents and addresses are verified with video proofs.
Video KYC Process
The KYC video identification process consists of several steps by which the user is verified by the agent. From the start of the process the client for which verification needs to be carried out registers their identity against an online platform from where the system redirects the user to an online video identity verification call with a specific KYC video verification agent deployed by the business.
Online Face to Face Video Call
The call is connected and the user is authorized by the KYC agent in terms of their face. The face verification process is instant as the online video conference confirms the facial identification of the user. It also confirms the liveness of the user as the client is on the video conferencing with the authority’s agent.
E-Verification of Documents via Live Call
The agent then checks for other KYC checks of the client, such as the documents which provide identity information. The video KYC verification documents check for identity cards, licenses, and other legal documentation of the client.
Validation of User Identity
The system is powered by AI technology which is used to check the accuracy of the provided data such as documents and other identity information, the identity verification process is more sufficiently performed with the help of video KYC of the client.
Verification of Client by the Agent Online
In the end, the client is verified based on the identity information they provided, the agent in the video KYC determines the originality of the client and continues the process of onboarding.
Video KYC Solution vs Traditional KYC
The Video KYC solution is efficient enough for customer verification. It conducts customer onboarding videos for real-time verification of the customer. This method differs from the traditional KYC method in a number of ways.
- The video KYC method is a real-time instant verification method whereas the traditional KYC approach may take up to several days to complete the process.
- With Video KYC verification the proof of documents is submit online and on the other hand, the traditional KYC method might involve the physical submission of Identity documents.
- The video KYC is backing up by new technologies such as powerful processing systems of Artificial Intelligence, on the other hand, the conventional KYC process involves manual processing of documents.
- As discuss in the video KYC verification solution is a powerful system that is process automatically by online algorithms by which the chances of errors are minimize when processing user documents, while the other manual methods may involve human errors that can lead to the failure of the KYC check.
- The video KYC method involves the client and the agent on the other hand for verification of the client. This proves the verification of the customer. The traditional approach is carried out manually with no live interference with the client.
Conclusion
The KYC (Know Your Customer) check is one of the major verification services that is applying to most online platforms. The main concern of most KYC and other identity verification laws is customer identification for a secure onboarding process. It is compiled with the AML/CFT compliance on all financial and other sectors that involve money laundering.
The video KYC solution is an efficient way of processing and determining the identity of the client via online interaction. It uses new ways to communicate with the client such as video calls. It verifies their identification data using powerful AI tools online.
