The AI-powered Online Identification market is booming and the demand for smart verification solutions has increased. Law enforcement agencies are putting pressure on financial businesses to comply with KYC and AML laws. The organizations are striving hard to redefine their KYC processes to efficiently meet the changing KYC regime. Starting with manual customer verification then moving towards digital KYC, IDV solutions have transformed. Now companies are introducing Video KYC solutions that allow online identification with video chat in real-time.
Let’s take a deeper look into how Video KYC is becoming the new normal in the IDV world.
What is Video Identification
Video identification or Video KYC verification is the process of verifying the user’s identity through a KYC agent-assist live video call. The video chat confirms the true identity of the customer with complete proof of verification. Video KYC is a quite convenient process and requires just a smart device with an operational camera, a good internet connection, and valid identity documents for verification.
Video KYC – Alternative to Face-to-face Verification
Most organizations are still reluctant to adopt digital Identity verification methods. The reason is they find face-to-face user verification more secure and reliable and are not ready to rely completely on automat systems for decision making. Keeping in view this point, IDV providers have come up with more advanced solutions synergizing humans for customer verification.
Video KYC allows organizations to extensively verify the customer’s identity through live video interviews and automate document verification during the video call. In this way, the organizations not only ensure the remote presence of the user at the time of verification but also eliminate the need for physically presenting the documents for verification.
Online Identification with Video Chat – The Process
Video KYC is a digital process that facilitates organizations to verify their customers from any part of the world digitally. The whole process is performed in a fraction of a few minutes and comprises the following steps;
- The user firstly registers on the business platform.
- The KYC expert gets on the video call with the user and interviews him.
- During the video call, the user is ask to show his government-issued identity document. The KYC expert verifies the user’s face and information on the document.
- Moreover, the document is also check for forgery or photoshopped elements; the AI validates the document verification in real-time while the user is still on a video call.
- Finally, the verification results are update on the merchant’s portal with video proof. The business owner/merchant can also update the verification status manually.
The video KYC companies are offering a single API integration for various businesses along with various models as per business use case and convenience.
Video Identification – And Ultimate Fraud Prevention Tool
Video KYC solution empowers businesses to record the whole online verification process during which the users are interviewed and ask to show their identity documents. The video proof is en
crypted to maintain data privacy and integrity. Moreover, the primary data such as geolocation and IP address are also stored as additional evidence of verification. This makes online identification with video chat secure and reliable.
In traditional user verification, customer documents are verified manually which leaves room for fraud. Oftentimes users present fake and forged identity documents to financial organizations to surpass identity checks and open an account. These documents are often hard to detect through the naked eye. In video KYC verification, the ID documents are verified using AI technology, and any forge or temper information is detected in real-time. This eliminates the risks of identity fraud and makes the verification process reliable.
Enhanced Customer Experience with Video Verification
The onboarding process is the first step in your customer journey. Most customers tend to abandon the onboarding process in the middle of the process is slow and cumbersome. With the current pandemic going on and businesses going remote, customers are looking for convenient and digital processes. KYC verification is an ideal solution to enhance the customer experience. With video identification in practice, the customers don’t even need to leave their place to open a bank account. Moreover, customer onboarding takes just a few minutes, unlike the traditional verification process.