The outbreak of Coronavirus has undoubtedly brought unwanted restrictions on our lives. For instance, the practice of social distancing demands maintaining a gap in public areas more than usually needed. On the bright side, the emergence of this disease has opened doors to new innovative measures to carry out operations in daily routine. The banks and other financial institutions have added value to their client’s life by bringing quick and digitally supported measures which have proved to be a great addition to new technological advancements. Video KYC is one of its kind in digital breakthroughs brought forward by financial institutions.
KYC Video Identification
Along with the emerging innovations in the processes of KYC, there comes the risk of verification fraud and scams. Video KYC is a process that has eliminated this threat to a great extent. This is because, in this procedure, the person who is supposed to be verified is demanded to show live presence. Formally, it has the following steps:
Verifying the Live Presence of Customer
The process initiates with identity verification first. This is done to make certain that the person who is supposed to be verified is actually present in the scenario and is not showing any pre-recorded video or previous photo in front of the camera. For strengthening the process further to remove any doubts, the representative of the bank who performs the process also takes a live photo of the customer to keep a piece of evidence for future reference.
Take Picture of the ID Document
After capturing the image of the customer, the bank agent takes a photo of the ID document presented through the video. The document image is cross-verified with that live photo of the customer to match for authentication so that it can be assured that the person is not an imitator. Moreover, the representative also keeps an eye on the postures and gestures of the person being verified. It is done to ensure maximum transparency of the whole process.
Best Solution for Video Identification
Video identity verification is not just based on the representative’s subjective judgment. The AI-supported video identification system supports Video identity verification and design on specific patterns of algorithms built on AI and human modulation. This feature allows the bank’s system to read provided information specific to each individual. It is because of artificial intelligence and human intelligence that the data provided is converted to machine-readable language despite the fact that it is specific to certain human attributes which are not the same for every person who undergoes the process.
Benefits of Video KYC
In addition to the improvised verification process. Video KYC has a lot more benefits to offer.
Video ID verification saves huge costs as otherwise traditional KYC requires the physical presence of a person to perform the process. Video KYC saves traveling costs and the mental fatigue that is experienced during the exhaustive procedure.
Quick and Convenient
The electronic process of verifying an entity has accelerated the authentication process exponentially. Because it takes less time and requires minimum effort to complete the process. The saved time could then be invested in another verification rather than manually managing the documents, going through them in detail, etc.
Video KYC is fast in comparison to the old method because the human effort has turned to be minimum and just needed for cross verification to avoid any machine-based glitch if it arises. Otherwise, the whole process has now been shifted to the AI-supported verification systems which have improved the efficiency of this verification process altogether.
Prevents Money Laundering
With the help of Video KYC, banks and other financial institutions can play a role in minimizing the risk of allowing laundered money to pass the process. Because Online identity verification service will also help to identify if a person is present on sanction lists or if he is found guilty in any relevant case, etc. It will allow the banks to run background checks saving them from falling prey to fraudulent entities. In addition to that, this process also helps to destroy the ill motives of those individuals who try to do spoof attacks or pretend to be someone else by acquiring synthetic identities.
The rise of frauds and scams in the verification processes has highlighted the need for more sophisticated methods of authentication than ever before. Video Identification appears to be the fruitful result of those efforts. It adds value to the operational performance of banks, reduces risks of fraud, and also it gains public confidence because people find their information to be safe from theft and less approachable to be misused by any criminal entity. After observing the increasing trend of video verification, many IDV solution providers have started to develop high-end AI-supported verification solutions to facilitate financial institutions.