In recent times, the KYC solution has gone through multiple updates. The banking sector and other financial companies took initiative so they shifted to digital platforms. Whenever the video verification solution became available for the customers to use, a number of financial companies showed resistance to using it and discouraged the new update. A number of banking institutions did not opt for the video KYC even when the pandemic had hit the whole world.
How Did Cybercriminals Take Advantage of the Digital Shift?
When the video verification KYC option became well known by the businesses, its demand grew and the banking sector along with start-ups and large enterprises had to adopt different digital solutions to satisfy the need of the clients. Nevertheless, a lot of banking sectors had to restrict the use of electronic KYC solutions with video identification chats to a limited number of clients. Additionally, the new update also faced criticism due to the lack of staff training and requirements of the system. In this context, a number of scammers saw an opportunity and used complex methods to infiltrate the system. These kinds of attacks surprised the financial institutions and they had to protect their systems immediately. Mold Inspection, Mold Removal & Mold Remediation New York, NYC, Brooklyn, Queens, Long Island & Manhattan NYC Mold Specialist, NYC Mold Removal, Mold Inspection Queens, Mold Inspection New York, Mold Inspection Brooklyn, NYC Mold Inspection, Mold Remediation NYC, Mold Remediation Brooklyn, Mold Testing New York, Mold Removal
How is the KYC Video Procedure Carried Out?
In the e-KYC video process, the clients get connected with a KYC professional. The expert takes the interview in a calm and friendly manner. Before entering the interview, it is important that the client should have proper evidence of identity. In the process, the KYC professional asks questions from the client and also monitors their behavior to make sure that the customer is genuine and not an imposter.
Video KYC Advantages- Why Businesses Should Adopt Them?
Efficient Fraud Elimination
It is really important in the sense that live interviews with the use of AI and ML algorithms make sure that there is no identity fraud in the case. Hence, the procedure is safe and secure for the companies and individual clients.
Reduction in Money Laundering
The legit customer onboarding system protects businesses from money laundering attempts. The video KYC interview process takes into account the proper background checks on the customers. It is to make sure that they were not involved in any penalties and put on the financial crime watch list. Hence, the video Know Your Customer proves to be a helpful tool in reducing the incidences of money laundering.
Enhance Client Experience
The KYC procedure is advantageous in eliminating the major efforts involved in physical authentication procedures. The slow onboarding procedure can be taxing and frustrating for the fresh customers. So, they take the easy option and abandon the procedure in the middle. The video KYC plays an important role in maintaining a positive experience for the clients.
Decreased Paper Related Work
As clear from the digital procedure, it is now possible that there is no long paperwork involved and the slow manual work is no longer required. In the old methods, it was difficult to handle information on paper, and many times it got disorganized. The latest procedures are time-saving and provide resource-saving opportunities for the companies.
The Differences Between Video KYC and Physical KYC Procedures
The KYC procedure is generally understood as the process carried out for the confirmation client’s identity. It helps evaluate any risks linked with the client’s profile. The procedure also requires that companies follow the KYC and AML regulations properly. When it comes to the traditional ways, the manual procedure has CIP (Customer Identification Program) for carrying out verification in the onboarding process. It was a time-consuming procedure because it took weeks and sometimes months for verification which left a poor impact on the clients so, they left the procedure.
Why is Video KYC the Need for the Modern Era?
The video verification solution is becoming common nowadays and it is proving to be an influential force in the evolving certification industry. Besides, the latest authentication procedures are time-saving and cost-effective. The increasing incidences of scams and fraud push financial companies for advanced security measures. The video KYC has become the need of the contemporary time because of its effectiveness and high accuracy levels in carrying out the authentication procedures.
In simple terms, the performance of identity authentication and other screening procedures became a compulsory step. They were important in the customer onboarding process of each bank branch and financial company. The development of the latest digital services provided customers with advanced certification solutions to tackle the risk of scams and financial terrorism. It should start a strict verification procedure for onboarding clients from all over the world. Any financial institution can obtain access to video KYC procedures from real owners. The video KYC solution utilizes face recognition and liveness detection feature for proper facial authentication of the client.