KYC stands for Know Your Customer. It is a prominent tool that has been being used constantly in the banking industry in the past few years. Video KYC can be said to be the process of recognizing a customer with the aid of video-oriented identification tools.
It is done so that the bank or other financial institutions can save themselves and their customers from illegal money dealings such as identity theft or money laundering.
What is video KYC?
Video KYC can be deemed to be an identical process to customer identity verification. The only difference is that it is done with the help of human KYC experts who organize the online verification of the customer’s identity.
KYC in the current age
The surge of the covid-19 pandemic has indeed shifted the functioning gear of the world. Many sectors have ventured into the digital realms. The commerce market has also evolved to become e-commerce by attempting an entry into the online forum.
As many banks and other financial institutions are completely new to online functioning, few can completely comprehend the online atmosphere and its advantages. Even the dangers lurking in the corner of the internet might go unnoticed. Thus, they have often not installed protection modes or software to save their online financial proceedings.
This has paved the way for many hackers to corrupt the database and impose a fake identity. It is often known as the case of false identity. As the bank not having proper systems to identify their customer, might often fall in this trap. This has raised the need for an accurate solution for the crisis of identity and its usage.
As the data security of a customer is highly valued in the financial sector, it brought the system of KYC online. It is often regarded to be a tiring and demanding process that might as well be time-consuming.
However, it is far better than having an unprotected system. Thus, many financial institutions have opted for a video KYC solution to solve online identity theft and money fraud concerns.
The prospects of video KYC:
A video KYC is a combination of artificial intelligence and human intelligence that has aided in providing effective solutions with reduced expense during the onboarding of customers.
The customer will contact a KYC expert in a video call, which will be real-time video KYC. The trained KYC expert will then perform the process of identification and will guide the customer throughout the entire proceedings.
It is required for the customer to offer their identity proofs, and an advanced system of artificial intelligence along with OCR will verify and collect the data. A thorough inspection of the proofs is done to verify whether they are authentic or otherwise. The KYC expert will also answer any queries that arise in the mind of the customer.
The fast-paced world has indeed been connected mainly due to the advent of technology; using the latest technology like video KYC will help improve the overall experience of online banking. For getting further knowledge regarding the uses and perks of video KYC, contact us at +91 820 898 8751 or email at email@example.com