Modern technology has provided beneficial solutions for verifying identities during the time of the Covid-19 crisis. From manual identification to determining the clients through using biometric technology to now using video platforms. For verifying the identities of the individuals before onboarding them, all these evolutions have been passed through a timeline. Were effective in their respective times. Since fraudsters have devised new loopholes to manipulate major companies, it has become a challenging task to detect these imposters. Video KYC identification has enabled corporations to onboard legit customers by verifying them on a video call generally assisted by a KYC agent.
Elaborating the Advanced Process of Video Identification
As the whole procedure of video verification is based on artificial and machine learning technologies. Understanding the working mechanism is vital before implementing them in major sectors. To initiate the procedure of KYC video identification, users are directed to join a video call by sending them a link via their emails where they are connected with a KYC agent who further guides them about the whole video KYC process. Some important steps are carried out for detecting the authenticity of the client which are mentioned below:
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Recognizing the Facial Features
When the user is linked on the video platform, the facial aspects of the user are detected. Which are compared with the picture pasted on the official documents which are held by the consumer. The liveness detection feature also helps in demonstrating the authenticity of the user.
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E-Verification of Documents
The user holds up the document, after which it is scanned to proceed with the verification process. Important details are extracted from identity documents such as driver’s license, credit cards, etc. by using the software of optical character recognition. The information is also checked against the global AML regulations to register legit clients without any risks of money laundering.
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Presenting the Results
Once the ID information and face recognition checks are completed, the KYC agent provides the result of the video KYC of clients depicting their originality which is then saved at the back office.
Is the Digital Video KYC Identification Better than the Manual Verification Process?
New technologies have prevailed in the global market which has provided tons of benefits to companies while suppressing the traditional method of verification. Some major differences between manual identification and video KYC verification are listed below:
- During the manual procedure, customers had to stand in long queues, waiting for weeks to know about their verification result. But with the digital video identification process users can get detected in less time as the whole procedure is automated.
- Video verification saves the resources and costs of the company by automatically checking any errors in documents. With great precision as compared to the traditional method of KYC authentication in which the user was required to an in-branch visit.
- Manually entering information regarding an individual makes them vulnerable to becoming a victim of human errors in contrast with the video KYC solution in which minor modifications made to the documents are detected in seconds.
- Storing piles of paper documents consisting of sensitive information is more at risk of getting damaged or stolen. As compared to the video verification in which documents are checked online aided by the KYC agent. Another point of notice is it enables to save up the storage space consumed by the stacks of paper documents as everything is stored on the digital database.
Various Sectors Gaining Benefits from KYC Video Identification
Due to its robust system, many corporations are now looking forward to implying the video verification process to generate fruitful benefits. Some of these sectors are mentioned below:
Financial Sector
To open an account, request a loan, or perform any transactional activity, it is mandatory for the banking institutes. To onboard those customers who comply with the global AML/KYC regulations to save themselves from hefty penalties. Manual identification has proved ineffective in detecting fraudsters trying to barge into the company using illegal ways. By connecting them through a video platform, the originality of the user can get detected in less time.
E-commerce Industry
Since the emergence of the Covid-19 crisis, many companies have shifted their workings to digital platforms. Dealing with customers online can become challenging due to the increased rate of crooks. Identifying clients through a video call will eliminate the risks of impersonating an identity and will allow companies to establish a seamless experience for customers.
Car Rentals
The cases of stealing car parts and selling them at high prices in the black market have created a nuisance for car rental companies. By enforcing video KYC solutions, several scammers can be detected swiftly.
Wrapping it Up
With the changing perspectives around the globe, customer demands are also transforming with time. New methods of verification have arisen in the market termed video KYC identification. Using the simple steps while connecting through a video call and getting assistance from a KYC agent, the whole procedure has become quite easy for detecting fraudsters in real-time. By gaining access to the firm, scammers can provide illicit damage to the company’s reputation and assets so it’s better to choose the finest option of video KYC for combating them.