Know-your-customer (KYC) is compulsory for banks and financial institutes to prevent scams. Digitization has changed the working way of the world. Where everything goes on digitally, many companies still lack the beneficial use of advanced technology.
Now financial institutes can use video KYC to reduce workload and make it easy for the customer to process identification procedures at home. One video call can check all KYC regulations. This article briefly explains how online video identification ensures secure financial institutions.
What is Video KYC?
KYC is the regulation of the banks to identify new customers before onboarding. Traditionally to follow the KYC process, there are two methods. One bank employee visits the customer or collects identification documents from the customer. The second is the customer has to visit a bank and physically follow the KYC process.
Video KYC is an automated way to know your customer remotely from any place. Live video or audio calls make it easy for businesses and financial institutes to reduce identity theft. KYC video verification is a troubleshooting invention in the Covid pandemic, which has been making many companies worthy.
How Does Video KYC Work?
As customers do not have to visit the bank, they can quickly complete identification by the customer onboarding video through the phone. Video KYC vendors allow businesses to utilize the documents online, digital identity verification and face-to-face interaction with clients on video and audio calls. The video chat ID verification is the same as any other interaction that happens in a bank.
In the video call, the bank representative asks for the identity verification documents and questions related to the institute’s regulation. After this short call, the bank will notify the customer if their KYC verification is successful.
Steps of Video KYC Process for the Customer
First, the customer has to register on the platform to upload documents and appoint a time for online video identification. Online video KYC vendors make this whole procedure simple in one click. It will reduce time and improve customer experience.
Schedule a Call
After the signup, customers will get an invitation asking them to schedule their customer onboarding video call with the bank representative. Some video KYC vendors also start the process instantly. The customer opens an invitation link at the scheduled time to create a video call with the bank agent.
Before the starting call, customers must prepare all the documents of their ID proof. They should also check a good internet connection and that the camera and microphone are working correctly. All these preparations are essential for the customer, so the video KYC does not take too long.
KYC Video Call
The customer will get an invitation for a video call from the bank. During the video call, bank agents guide customers throughout the whole process. The customer must show all the identity verification documents like ID proof, address proof or other necessary documents. Agents will perform all the verification checks to authenticate the identity, including face verification, holograms, and further security checks.
After completing the procedure, the customer will get a notification about verification. They can also check the status of their application by the sms or email to see whether the video KYC approve or in process.
The KYC process is compulsory if banks want to comply with the AML regulations. Customers must pass the KYC procedure to open an account, for a loan, insurance policies or use other bank perks. Identity verification is essential for financial institutions to build trust and enhance their security.
Video KYC Prevent Financial Frauds
Businesses use online video identification software for many reasons, from improving customer experience to safeguarding companies from financial fraud. Below we glance at two main motives for conducting online video identification.
Banks and other financial institutions want a simple and cost-effective method to perform the KYC procedure because compliance with KYC regulations is compulsory for the banks. Digital Video KYC reduces the logistic cost of going to the customer’s place. Identity verification must be without error; there is no chance of a little mistake. KYC video verified software work on machine learning which cross-checks hundred times. Also, see messaging app present on the internet
The seamless onboarding experience for the companies and video KYC is fast, which enhances customer satisfaction and decreases time-consuming. If finance companies do not take the KYC, it will lead them to high revenue loss. Where the KYC verification takes 10-20 days now, video KYC can do it within 10 minutes.
Finale Video KYC Thrashing Old KYC Technique
The video KYC is an easy and authentic procedure to identify the customer. It is challenging for other financial institutes to beat it with the manual KYC technique. The digital world also changes the regulatory system everywhere, so financial institutes must invest in technology if they want to up hands-on scammers.