The number of fraud cases has increased quite a bit due to technological innovation. It has allowed scammers to benefit by breaching systems and using other techniques. Though digitalization is better for companies in many ways, there are several loopholes in their system, like outdated security devices and poor customer service.
If the boost in fraud cases is overlooked, there will be a damaging hit on the industry. In the digital era, implementing video identification will discourage scams and improve the workflow of companies. Thus, with an advanced video KYC solution, corporations can offer a better experience to their customers.
What is Video KYC Verification?
Video KYC is an error-free service that rationalizes the procedure of user registration. It stops fraudsters /scammers from breaching a company’s data servers. The latest technology involves the use of smartphones, which are spreading rapidly.
However, facial recognition is already very common among people to unlock their smartphones and other mobile devices. These devices use dot projectors to scan the face of a user. Still, in the case of businesses, artificial intelligence helps to meet AML/KYC guidelines which will also assist them in avoiding hefty fines. Additionally, biometric and facial detection technologies are becoming more useful. These detection methods provide security and raise market credibility.
Advantages of Online Video Verification
Scammers are neither skilled nor have the technology to copy bodily features. Thanks to these limitations, video identification services are safe as they scan the physical features of a client. KYC video solutions are benefitting many firms, for instance.
- Better Time Management
Video KYC is a service in which the consumer and the agent can contact in real-time and remove consumer drop-offs. On the contrary, a traditional KYC request takes several days or weeks.
- Prevents Money Laundering
A scammer always tries to exploit a system with weak security mechanisms to achieve its evil targets. Companies running on traditional or outdated security systems give scammers an easy way to hide the source of their money. But, the video KYC system helps organizations easily discourage money laundering, fake financial transactions, and terrorism financing.
- Verification of Customers Location
Video KYC service helps the business sector know the consumer’s location via IP address, ensuring a high level of security for all businesses.
- Betterment of B2B relationship
AI-based online video identification systems improve the connection between corporations. With the use of the latest technologies, the credibility of industries can increase in the market as it communicates progress.
- Security of Data
Video-based ID validation services enhance data security and discourage scammers, helping companies gain the trust of their customers as well as achieve business profit goals.
Traditional vs. Video KYC
Video KYC is better in many aspects as compared to traditional KYC; for example,
- Video KYC has real-time verification
- The submission of documents through the online method
- It includes artificial intelligence, which makes no human error
- Verification proof is always documented in Video KYC
- There is no error in the authenticity
How Video KYC Validation System Works
Technology modernization has increased security, but Video KYC is extremely advanced in verifying a customer’s ID. Video KYC works in a sequence that starts from:
The registration of a customer, after which a KYC expert gets in touch with the consumer for an interview. The consumer then needs to answer the queries for liveness detection and check if there is any manipulation.
After all these steps, the consumers need to show their ID generated by the government, and after finalizing the complete procedure, customers receive the final results.
For more precision, utilizing AI and machine learning is a must because it saves a lot of time and has zero chances of human error. Everything is done remotely, which means that there is no traveling cost.
In today’s day and age, mobile phones are the most popular electronic devices among people. For their data security, biometric authentication is extremely important. Thus, businesses must choose a modern video chat ID verification system to prevent fraud attempts and protect their organizations from harm. Incorporating an online video identification solution simplifies the onboarding approach and attracts only actual customers to the organization. Advanced strategies employ 3D liveness checks and anti-spoofing powers to prevent crime. As an outcome, the application of video KYC solutions is a practical strategy for modern industry in terms of sustained expansion and compelling fraud prevention.
Moreover, with the incorporation of video KYC, financial firms can significantly drop consumer complaints and secure the approach of onboarding, which will enhance overall service.