The verification of new clients during their onboarding is a very important process. This process is a basic requirement nowadays because of the increasing number of frauds all around the globe. According to research fraud in fin-tech and other organisations has increased from 21 to 25 percent in the last year. The most basic scams related to financing are money laundering, terror financing, illegal trading, manipulation of markets, and transfer of black money from one account to the other. The video verification system has been develop for the identification of new clients. This process is include in KYC to fight crimes. A software name Saas is use to identify clients globally and helps in verifying identity with the help of video calls.
What is Video Verification?
There are different KYC methods to remotely identify a new client but some of them take a lot of time and that increases the risk of errors and all types of other issues. To take care of all of these problems a modern solution by the name of Online Video Identification is introduced. It is use in the onboarding of clients by finance companies to verify the identity of a new client in real-time without any delay. This process is extremely convenient and safe for all finance businesses to enroll new clients by identifying them through KYC video calls and by checking and scanning their documents through the camera.
This process takes the support of know your customer compliance and anti-money laundering regulations for verifying the new users by video calling them and verifying their documents in the shortest time. The clients are to answer some crucial questions ask by the experts and while they are answering the questions their facial expressions are also monitor.
Difference Between Video KYC and Regular KYC Regulation
The KYC method is use by fintech and other finance companies for the safe transaction of money. In the regular KYC method, the end-user is bound to submit the information that has been ask with a selfie that must be click on the spot but on the other hand video KYC is the process of the verification of clients through a video call. This process is now commonly use by finance companies and banks for onboarding clients globally.
Online Video Identification in Financial Sector
Online video identification solutions are use by fintech and finance companies to maintain security and improve customer experience. There are many important benefits of video-based KYC and some of them are state below:
Saves Time and Money:
Verifying the uniqueness of customers through a video call can help in saving a lot of time and it is also very economical. This system helps the finance companies in saving a lot of money.
Enhance Customer Experience:
The video KYC process is very convenient and fast and it improves customer satisfaction. The process takes place in face-to-face interaction; it helps the finance company to recreate the in-person experience. The video KYC also helps in decreasing the number of abandoned applications because of the difficult procedure. A lot of customers leave their applications half completed because they do not understand the process.
Improves Digital Security:
Scammers and fraudsters can be caught through online video identification. Scammers use other people’s data and create a fraudulent one of their own and through video verification, they can be restrict from doing that because through video call the body language of a client can be monitor, and if he is a fraud he can be easily taken care of.
Video Identification Workflow
The video identification system is performing very well for fintech and other financial companies. It is notably conduct in FinTech businesses to protect against phony entities entering a system for their criminal and inhuman purposes. which means confirming identification through video chat is accomplish by the methods given below:
- Clients are limit to filling out the representative form in the first phase.
- After the first registration, the second stage is to connect with the consumers through a video call for online verification.
- The consumers are then carefully monitor, and a liveness detection is made to ensure the existence of clients at the time of verification.
- In the fourth phase, sensitive customer credentials are collect for further verification.
- Following that, the user is require to produce both sides of the identity document, which might be a passport, national identity card, or a driver’s license.
- Finally, the identity certificates are authenticate using artificial intelligence and machine learning identity authentication technology.
Video identification is playing an important role in fighting all kinds of financial frauds and money laundering. This video KYC process helps in maintaining safety by identifying fraudsters and scammers. This procedure provides the results in real-time with authenticity, as well as builds the trust level of end-users.