Financial businesses around the globe use artificial intelligence and different types of automated processes. Because some type of live encounter between a business and a client is important to confirm the credibility and reliability of a new client. Businesses use the video know your customer (KYC) service to verify the identity of clients during the onboarding process. To verify the identity of a person by a video call, the financial businesses or fintech arrange an online meeting. In the online meeting, the client appears with a set of his/her characters of identity that was earlier screened during the initial stages of the onboarding process. The facial expressions of the clients are monitored during the call and an automated verification solution also helps in determining the genuineness of the client.
Working Process of Video Identification Mechanism
The client has to complete the document verification process, the age verification process, the address verification process, and the 2FA authentication process. When the financial business is satisfied with the client’s profile, the client receives an email for a live video call with a know your customer authentication expert.
In this process of e-KYC and identity verification, the customer has to show his documents to the particular agent. The expert asks questions from the clients to confirm their identity. The AI systems help in verifying the ID once again as confirmed in the initial stages.
The digital systems verify identity in real-time calls. This helps the financial companies in completing the authentication process. The facial data is matched with the picture provided by the client and the facial expressions also confirm the identity of the client. With the help video KYC process, banks and fintech save millions of dollars every year by warding off criminals and bad actors.
Different Processes for Video Identification
There are different types of processes through which a business can authenticate the identity of a client during the onboarding process. The three major types of Video KYC are 1. Regional KYC agent 2. Automated solution for video KYC 3. In-House KYC agents. A business can use all three or a combination of them. It all depends on the location of the clients.
Regional KYC Agent:
Different global financial companies and fintech use different agents belonging to various countries to help them in the onboarding process. With the help of a multilingual system, these agents help in the authentication of different documents that need verification through video calls. This process also helps in bringing new clients from different regions where English is not the first language.
Automated KYC Solution:
The automated solution for KYC verification works like all the other KYC AML processes. Financial businesses and banks use this video KYC process to increase accuracy and speed in the onboarding process. This digital authentication video method collects significant data from the facial expressions of the client during the video call. The body language of the client is also monitored with the help of artificial intelligence. This makes the process the best Video KYC solution.
In-House KYC Agent:
The in-house video KYC system helps businesses in saving a lot of money. Instead of hiring people from different regions, the internal staff of the institution is trained for the task. The process of video verification is very easy and it saves businesses a lot of time and money.
Industries in Which Video KYC is Used
Banking
Banks and other financial companies use this method to identify clients with a video call. This helps them in identifying financial frauds and irregularities. The regulatory authorities also emphasize that video KYC should be used to prevent money laundering and scams.
Real Estate
Real estate agencies can also use the video KYC process to authenticate the identity of a client. After banks, real estate is also used by scammers and fraudsters to launder money. In 2019 people of America lost 213 million dollars due to scams. These scams can be stopped by using video identification.
Cryptocurrency
The rise of the crypto industry with increased AI-driven technology has the potential to impact the future of money. To prevent money laundering, virtual currency exchanges with systematic solutions can verify identification through video calls for seamless customer onboarding so that age verification checks are authentic.
Significance of Video KYC of Client
- The money spent on manual KYC verification or additional expenses caused as a result of inaccurate or obsolete identity systems can be saved and used for other important processes. The act of verifying identity through video calls saves a significant amount of money for production, worldwide marketing, and other purposes.
- For client convenience, the technology can quickly authenticate the supplied information and verify identification through video calls.
Conclusion:
The video KYC process is used by different finance companies during the onboarding process of new clients. This process provides remarkable accuracy and helps in reducing identity fraud and as well as money laundering.
