Although the wave of digitization holds out promise, there are also some downsides. Finding a balance between customer experience and security is difficult for the corporate sector. Which verification method should be employed so that it satisfies both internal and external client requirements that comply with international regulations? The answer is KYC video verification. Real-time client onboarding is one of its many benefits, but it also satisfies evolving regulatory requirements.
Video verification is a modernized version of traditional KYC identification that is faster, cheaper, and more secure. It eliminates paperwork from the company and streamlines the verification process with immediate results. Customers can create their accounts online without even physically visiting the office to have their identity verified. Onboarding new clients and opening new accounts are both done remotely.
Industries Benefiting from Video Verification – What and How?
The demands of customers change along with technological advancements. Businesses are looking for verification solutions that satisfy their requirements without sacrificing user experience. This is the exact situation where e-KYC video verification is successful for identification. Here are some industries, benefiting from video verification.
Financial Firms and Banking Sector
The regulatory agencies have always closely monitored the financial sector. They must adhere to KYC/AML rules when onboarding new clients. Banks and financial institutions now require online identity verification processes instead of the outdated manual method, which is quite hectic and time taking. Video verification is therefore a great option for real-time person validation and KYC/AML compliance.
Fraudsters are simply taking advantage of every industry to engage in illegal activity, and insurance companies are no different in this regard. Scammers avoid the verification processes by using stolen identities or forged documents, which causes concern for insurance companies. A terrible crime like this not only violates the rights of the business owners but also the rights of the victims. With the help of video identity verification, insurance providers can ensure that only genuine customers use their services.
The cryptocurrency industry is another field that is suffering greatly from fraudulent activity. Criminals use complex techniques to use the company for their illegal purposes. Such crimes are the main reason businesses use video verification. In addition to offering better security services, the upgraded verification solution also makes sure that customers have a positive experience.
Car Rental Sector
Additionally, video KYC is used in car rentals. With the verification solution in place, these companies can address the problem of stolen cars or their pricey parts. Rental companies can now validate their clients’ identities remotely using the government-issued identification documents they have on file for them.
The only distinction between non-banking financial institutions and the banking industry is that non-banking institutions lack a license to operate as banks. The primary role of such non-banking companies is to provide financial services to a specific audience. Hence, KYC video verification is a game-changer for NBFCs. As the verification is quick to complete, the industry can onboard more customers faster.
Since the pandemic, many businesses have switched to remote operations. Despite impractical circumstances, they could conduct business operations online. This has increased the vulnerability of businesses to fraud and crime, though. Cybercriminals are merely making use of this circumstance to gain unauthorized access to the private information that the companies are holding. It merely raises doubts about the organization’s certification process. In this situation, KYC video identification was a wise choice. It enables businesses to make sure that only trustworthy customers are accepted. Additionally, identity verification restricted access to the company’s services to those who had been verified.
Video Verification Checklists for KYC
Before getting into KYC video verification solutions, it is essential to know about their features. Learning about its features ensures that opting for the solutions is beneficial for business. Prior to choosing a KYC video identification for the business, take into account the following factors.
- Global Coverage: Among the KYC video verification solutions, the best one offers global coverage and allows businesses to identify various documents and languages.
- Cost-Effective: It improves the customer experience while bringing down the price of the KYC procedure.
- Customized Approach: The technique should be developed as per the needs of the business.
- Enterprise-Grade Security: The system should ensure the privacy of the client while providing greater security.
- Omnichannel User Engagement: It must offer omnichannel for user engagement. As a result, customers have a better overall experience because they don’t have to change channels to complete their identification.
Video KYC seems to be the most recent fad in the verification sector. The know-your-customer procedure can be simplified and cut down on the time needed to perform it for companies. Real-time online document verification and a KYC video identification solution can both help to ensure that clients are onboarded without falling victim to fraud. Select the best option in accordance with your company’s needs to improve security.
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