What should you know about Video KYC?
A recently implemented KYC procedure involves the video-based verification of a customer’s KYC information and is known as video-based KYC or Video KYC. Before starting an account-based connection with a regulated financial institution such as a bank, financial service provider, insurance, or securities intermediary, the customer’s KYC information is usually obtained & validated. These KYC verification processes are an essential component of customer due diligence (CDD), a set of controls put in place to prevent fraud, money laundering, and using funds to fund illegal activities. Here, you will learn essential insights about video KYC:
How Does Video KYC Operate?
The RBI recently approved employing a Video-based Customer Identification Process (V-CIP) to achieve paperless KYC, much like one might choose to go for an offline KYC registration or an online KYC verification process. A similar sanction has been given for the paperless KYC for opening NPS accounts by the Pension Fund Regulator PFRDA. As a result, Video KYC entered the scene. Users who use video-based KYC can perform remote KYC from any location by making a video call. In contrast to conventional methods, the verifier authenticates the papers, does a liveliness check, and determines the person’s place during a video conversation.
Steps involved in Video KYC:
KYC verification that is digital and paperless
Paperless activity is used in video KYC, which is entirely digital. All three Video KYC procedures operate primarily through digital channels, rely on document scans or photos for verification, and are accessible online.
video contact with a qualified official
An essential phase in the video KYC process is the consumer’s interaction with a trained official from the FI (financial institution) doing the video KYC. The trained official will ask the customer a series of random questions. By authenticating document images & matching the customer’s face with photos on IDs, this interaction serves as both a liveliness check & an identifying method. It is utilised to prove the customer’s identification.
Geotagging and facial matching
Geotagging is used in video KYC to pinpoint the customer’s location during KYC verification, and facial matching is implemented as a vital identifying technique.
Instantaneous and automatic document verification
Contrary to manual verification, video KYC has a technology that helps extract information from photos of Officially Valid Documents (OVDs) and then instantly verify it. This is a crucial video KYC component since it enables faster verification with fewer mistakes.
Prospective clients and customers seek convenience. It’s time for the banking sector to take the initiative, especially as the world becomes more digital and millennials and Generation Y redefine customer service expectations. Use the best Video KYC software solution to digitise your KYC verification process to provide a simple user experience while ensuring that KYC is completed more quickly, more affordably, and with higher customer satisfaction.
The points mentioned above will let you understand how Video KYC work, its features and its need in today’s digital world. This can be interesting for you to learn new things, but when you choose a bank, you should choose a reputed one.