Technological advancements have shifted business operations to digital platforms, which give fraudsters an opportunity to commit cyberattacks. It has also allowed fraudsters to get benefits by exploiting systems through different techniques. Though digitization is beneficial for organizations, there are still several loopholes such as traditional/outdated security devices and bad customer service.
The rise in fraud cases cannot be neglected in order to protect businesses’ credibility in the market. In modern times, video checks must be integrated to discourage fraudulent activities and to improve the workflow of businesses. By using advanced video KYC solution, organizations can offer an overall enhanced customer experience.
Video KYC Verification
Video KYC is an error and risk-free service that streamlines the procedure of customer registration. Its purpose is to discourage fraudsters /scammers from exploiting an organization’s data servers. The latest technology which is spreading worldwide involves the use of smartphones.
People using facial recognition to unlock their smartphones and other mobile devices know the benefits of this technology. Facial recognition involves dot projectors that scan users’ faces. In the case of businesses, they have to implement artificial intelligence that can meet AML/KYC guidelines in order to avoid hefty financial fines. Biometric and facial detection technologies are becoming more popular than ever before. These detection methods provide improved and risk-free security and raise market credibility.
How Does Video KYC Solution Work?
The advancement in technology like video KYC has increased the level of security in the verification of a customer’s ID. Video KYC works in a sequence that starts from:
- The registration process after which a KYC expert gets in touch with the customer for an interview
- The customer is then asked a few questions for liveness detection and checks if there is any suspicious activity
- After these steps, the customer is asked to show his government-generated Identity (ID) and after finalizing the procedure, the customer receives the final results
To ensure high accuracy, the integration of artificial intelligence is mandatory to save time and eliminate the chance of human error. There is no cost of traveling as all of the procedures are done remotely.
Traditional vs KYC Video Checks
The KYC video checks are superior in many ways as compared to the traditional KYC, for example,
- Video KYC can do real-time verification
- The documents are submitted through the online method
- The presence of artificial intelligence means no human error
- Documented verification proof
- No chance of having an error in the authenticity
Benefits of having KYC Video Checks
Fraudsters are unable to copy bodily features as they are not having the technology and skills. Thanks to these limitations, online video verification services are safe as they can properly scan the physical features of a customer. Video KYC solution has proven to be beneficial for organizations, let’s discuss some of them.
- Better Time Management
Video checks allow the customer and the agent to contact in real time and remove the customer’s drop-offs. On the other hand, a traditional KYC request takes many days.
- Prevents Money Laundering
A fraudster is always looking for a way to exploit a system having weak security mechanisms to achieve his evil targets. Companies running on outdated security systems provide fraudsters with an easy way to hide their source of money. But, the video KYC system helps businesses easily prevent money laundering and terrorism financing.
- Customer’s Location Verification
The application of KYC video checks helps businesses to know the customer’s location via IP address which ensures a high level of security for industries.
- Improved B2B relationship
The use of AI and ML-powered online video verification systems enhances the connection between businesses. These latest and advanced technologies help in increasing the credibility of industries in the market as it communicates progress.
- Data Security
Video-based IDV services increase data security, which discourages fraudsters and allows companies to gain their customer’s trust.
Nowadays, mobile phones are the most used electronic devices. For users’ data and information security, fingerprinting and facial authentication have been implemented. So, businesses need to choose a modern and advanced customer identity verification system in order to prevent fraud attempts and protect their organizations from suspicious activities.
Video checks implementation streamlines the customer’s onboarding process and attracts only real customers to the organization. Modern techniques use three-dimensional (3D) liveness detection and anti-spoofing capabilities to prevent crime. So, the application of a video KYC solution is a practical approach for modern industry in terms of effective fraud prevention. With the use of video KYC, financial organizations can lower the number of customer complaints and secure the customer’s onboarding process which will improve customer experience.