Video KYC vendors are providing video verification solutions for online businesses to meet security standards, reduce operating costs, and onboarding time.
In the era of digital technology, the world is changing at a rapid pace. Where digitization has brought innovation to the table, it has also created room for potential security threats. Verifying a person’s identity was considered a challenging task until online identification solutions came into effect. Today, online businesses are adopting modern methods of verifying their customers to carry out KYC procedures.
An emerging solution in the market is Video KYC that incorporates a live interactive video session with the customer, under the supervision of a KYC expert. Video KYC vendors provide corporations with a comprehensive suite of verification solutions for their customers which are cost-effective, less error-prone, and provide better customer coverage.
Why is there a need for KYC?
Know Your Customer (KYC) is an essential procedure that businesses follow to know their customers better by verifying their identities. The process helps identify any possible risks during customer onboarding and comply with KYC/AML obligations. According to a survey conducted by Wyzowl, 86% of people are of the view that customer loyalty is best served when a company or business invests more in onboarding measures and customer education. Online businesses prefer digital KYC solutions to better serve the needs of their clients.
Conventional KYC and Video KYC
With KYC being inevitable for financial firms, banks, and other related online businesses, the traditional methods are a little too tedious and time-taking. Manual customer identification programs (CIPs) take up to weeks making the customers frustrated and eventually losing interest in the product or service. With solutions provided by Video KYC vendors, verification is performed in minutes using AI-powered techniques. The process of customer onboarding using video verification methods combines real-time identification of the customer identity. Online document submissions using video verification are effortless and error-free.
Benefits of Video KYC Solutions
Video KYC service providers are striving to produce verification solutions by fusing efficacious technologies with human expertise. These come will multiple benefits, a few of them as below:
Reduced Turnaround Times
KYC turnaround time is significantly decreased by employing services provided by Video KYC vendors. The overall rate of operations is increased which makes the workflow fast and smooth. To better serve the needs of their clients, Video KYC vendors often come with a custom business solution. Video KYC vendors make sure the integrated service makes the KYC process swift, accurate, and user-oriented.
Remote Customer Onboarding
The innovation brought by Video KYC vendors redefines the realm of customer onboarding. With customer identity verification becoming as easy as scanning your face on a smartphone, customers find it intuitive and user-friendly. This not only creates better opportunities for customer acquisition but also makes the onboarding process easy and efficient for the company.
Video KYC service providers are looking for cost-effective solutions for video verification, which increases the prospects of online businesses investing in their services. During the online verification process, maintaining a reasonable customer experience is significant while reducing KYC process costs. Video-based identification allows companies to cut on verification costs by saving a lot of manual labor spent on user enrollment and related activities.
Defense against Online Fraud
Security is the pith and marrow of online financial services. Without a secure channel of verification, there is an added risk of losing a loyal customer base and possibly a good market repute. Video KYC vendors incorporate many security aspects to provide their clients with risk alleviation and mitigation strategies. Video verification, although being a recent novelty in the FinTech circle, is concerned with transparent customer-business relationships by overcoming identity theft.
Identity spoofing is a common online fraud in which the impersonator takes on the identity of another individual. Online verification systems are being outwitted by fraudsters by using technology in deceptive ways. In video verification, the verification is carried out in the presence of a technical expert who instructs the user on a video call to verify their face or identity documents. This also helps in reducing other types of fraud including synthetic identities and deep fakes.