Fintech industries always hold the reputation for being one of the pioneer adopters of innovation, particularly when it concerns enhancing the client encounter and making their lives more comfortable. Hence, when the Regulated Entities (REs) issued its latest amendment on Video KYC providing an extra means of Video-based customer Identification process administering the KYC (Know Your Customer) process, the fintech industries readily agreed to adopt it.
What is meant by a video-KYC?
The constant progression in technology has had a prominent influence on numerous sectors across the globe. One can conveniently complete even the most tiresome tasks over the web. One of the best examples of digitization is the video KYC solution.
Video KYC commonly regarded as V-KYC is the method of administering Know Your Customer (KYC) attestation over a video call. Typically, the fintech company or the KYC official connects over a video call with the clients to validate their signature, submitted records, and facial identification along with other examinations to confirm authenticity. Based on the information gathered and other inspections and judgments, the fintech company officials or the KYC official accepts or repudiates the KYC application made by the customers.
Why do fintech companies adopt Video KYC?
Know Your Customer (KYC) is a compulsory method for verification or attestation of identification for numerous fintech processes. Video KYC in fintech in present times has further grown as a reliable solution to curb financial crime and money laundering. Apart from this, there are some other benefits of Video KYC in the fintech sector that are mentioned below.
- At home client onboarding
Video KYC has enabled the digitization of OVD (Officially Valid Document) acquisition, geo-tagging and facial identification to confirm the client’s remote location. This in turn has enabled modern fintech companies to onboard brand-new clients remotely.
This video KYC has been especially beneficial in the modern pandemic times wherein social distancing standards have become mandatory for the people. Due to this pandemic, many people are fearful of visiting a public place and this remote video KYC process has made it extremely easy and safe for customers by eliminating the requirement of stepping out of their place for physical verification.
- It helps in time-saving and faster processing
With the assistance of Video KYC, the companies in the Fintech industry can finish the entire KYC process within a few minutes. This enables them to onboard more clients in a limited time.
Apart from this, it will further enhance client encounter and content as the customers will always hold the benefit of not waiting in extended lines or waiting for a prolonged time to get their KYC performed.
- Decrease clients’ drop-offs
Adoption of video KYC further enhances customer engagement through on-time completion of every fintech process like mobile banking, mobile payments along with regular follow-ups and other operations promptly to reduce the client drop-off rate.
Video KYC can easily streamline this eKYC process and make it extremely efficient against dishonest applications and a more comfortable way of client onboarding. With the assistance of the right Video KYC software in place, the Fintech industries can make the eKYC process smooth and keep the clients informed at each level.