Know Your Customer (KYC) has undergone several digital evolutions in the last decade. And as usual banks and other financial institutions were the first onboard to adapt to the changing digital landscape. However, when video verification was offered as a KYC solution, suddenly a lot of banks were not as forward-moving as they were before. Even when Covid 19 pushed video-based KYC to the forefront and Anti-Money Laundering (AML) requirements increased, many banks were still resistant to video KYC verification.
Nevertheless, customer demand for video KYC verification solutions rose and banks, Fintech companies, and large corporations were forced to provide alternative means for customer onboarding. But many banks only opted for either e-KYC’s online KYC verification and/or video chat for select existing customers. Despite having a variety of video KYC providers available to them, the lack of adaptation of video-based KYC was placed on too much staff training and system requirements.
What Goes On in the Video KYC process?
We are now in 2022 and while US banks are still worried about staff training and system requirements, in 2020, the Reserve Bank of India has made a video-based KYC verification a standard customer onboarding solution for all Indian banks. Considering that video KYC verification is a completely new customer onboarding solution, it does beg the question of why so many banks don’t have it as a standard option for all customers. Besides, there are video KYC providers that can meet their system requirements and do not require massive staff training.
Or maybe the problem is in completing the video KYC process. On both the customer’s and institutions’ end, it is similar to the in-house KYC verification process. The only difference is in the software and customer onboarding tools.
The video KYC verification process varies depending on the bank and the video KYC providers. Some banks simply use screenshots of signatures and documents for ID validation, e-forms, and live video chat interviews or video recordings. Others require biometric scans, downloadable forms, and scanned documents as part of the video KYC process.
Since it is up to institutions to decide what can be part of the KYC verification process, the requirements will not be standard everywhere. For IDMERIT’s IDMlive video-based KYC solution, nothing is required outside of the normal needs of your Customer Identification Program (CIP). Just as you would have additional identity verification requirements for high-risk customers, the same goes for us.
On your end, all it requires is to set up an interview with a live agent and that’s it. We handle the rest.
Customer Requirements for Video KYC Verification
- Declaration of identity: Name, Age, Date of Birth, Address, Occupation, Nationality, Telephone, Email, Gender, Relationship Status, and signature or identifying marks or features.
- Verification Documents: Driver’s License, ID cards, Social Security, Passport, marriage licenses, and address verification documents such as utility bills or mail-in bank statements.
- Non-appearance on watchlists and/or disclosure of any association with Politically Exposed Persons (PEP’s), Specially Designated Nationals (SDN’s), and Adverse Media Watchlist members
- Proof of employment or income via letter, paycheck, or other proof of earnings.
- Identifying tax number (individual and business)
- Beneficiary Information and identification documents
Since this can be done through the customer’s smart device, it costs your company next to nothing in additional software infrastructure. Even if you choose to have our IDMlive API integrated into your system, it would not cause serious disruptions and is easy enough to use by a moderately trained individual. However, to get the best results we prefer IDMlive to be used to the best advantage through our systems which are already built for digital identity management.
Video KYC Verification is Not E-KYC
Video KYC verification is not e-KYC. It’s easy to see why customers and businesses confuse the two or use the term interchangeably. Many people figure once you are online it’s e-KYC. But the differences between e-KYC and video KYC verification can vary from bank to bank. Whereas video-based KYC can always be used as a completely new customer onboarding solution, e-KYC is usually used in a limited capacity due to not partnering with IDMERIT.
Though both KYC verification tools require the use of the internet and/or smart devices, e-KYC works best with digital forms of identification and access to various global electronic ID databases. That way you can have global ID verification in seconds and a shorter automated KYC verification process. KYC videos, especially with live chat videos can take the same amount of time as an in-house KYC verification process.
The differences between the two KYC verification processes don’t stop there. E-KYC can be a fully automated process without human interaction on the institution’s end. It is also designed to be a simpler process with basic customer due diligence for low-risk customers. KYC video, on the other hand, was made with the complete KYC verification process in mind.
Though e-KYC is highly convenient, it leaves too many loopholes when dealing with high-risk customers. Video-based KYC has both the convenience and the effectiveness of an enhanced due diligence process for high-risk customers. Due to the fact that it is a complete process similar to in-house KYC verification, done correctly, it can shorten the process for B2B customer onboarding.
|Fully automated||Need human intervention|
|Need human intervention||Works better with high-risk clients|
|Shorter customer onboarding times||Shorter customer onboarding times|
|Needs full central database support||Can work with or without a central database|
|Digital identification||Traditional identification methods|
There are some similarities between e-KYC and video KYC that are the cause of them being confused as one another. One of them is the video capabilities. E-KYC can be done with video and incorporate a few elements of KYC video. Because KYC video is usually done live online, there are also elements of e-KYC that are used in KYC video to make the customer onboarding process less manual and tedious.
What You Need From Video KYC Providers
There are a lot of KYC providers and only recently a select few have added KYC video to their services. Sadly, a lot of them don’t have the systems or services to support an effective video KYC process. So when choosing between video KYC providers make sure they fulfill a few important functions.
Video KYC providers need to have compatible software systems and solutions that can be easily integrated into your company’s existing operating systems. Your customers or staff should not be overwhelmed with complicated systems that require complex installations and maintenance. The video KYC verification process is supposed to work smoothly with existing ID validation systems and solutions.
The video KYC solution they provide should also be adaptable for new customers and B2B customer onboarding. Document verification can be done instantly and Ultimate Beneficial Owners (UBO) identified simultaneously. The video KYC process needs to be fluid enough to adjust for customers without access to higher levels of technology.
Global ID verification ought to be a standard when it comes to ID validation for KYC videos. Virtual Private Networks (VPN) can place an individual anywhere in the world. Banks and financial institutions especially, need to have access to ID validation systems that can provide global ID verification.
Accessibility also goes for users and staff as they too need to be able to use your video KYC solution with ease. With the right video KYC solution, extensive and expensive staff training or recruitment would not be necessary. And users should be able to access the service through any smart device and get verified anytime and anywhere.
IDMlive: IDMERIT’s Video KYC Solution
As part of our IDMkyX platform of identity verification solutions, the IDMlive API is designed for real-time identity verification through live video chats using our trained agents. Since we already have the global database accessibility and support systems in place for digital identity management, you can get faster global ID verification and automated KYC. This of course means easier AML compliance certification and a better-protected business.
IDMlive uses AI-informed technology including biometrics and liveness detection that allows us to validate the ID in seconds during the video KYC process. As part of our unique ID validation systems, IDMlive is positioned to help reduce fraudsters from entering your system. It can work using both e-KYC methods of digital identity verification and traditional. It is also suitable for behavior monitoring for risk assessment.
Our experience in the banking and financial industry, virtual event hosting, and digital identity management makes us the best customer onboarding remedy you can buy for your video KYC solution. With access to global corporate and governmental databases, global ID verification of UBOs and performing Know Your Business (KYB) verification can take place live in real-time. B2B customer onboarding interviews can be conveniently scheduled to meet the needs of overseas clients while reducing wait times for ID validation of corporate entities and owners.
IDMlive becomes a complete digital identity management solution when assisted by our other ID validation APIs. IDMdevice makes it possible to identify bots and remote access from another device while IDMsocial can be utilized to support behavior monitoring solutions by comparing social media habits. And of course, IDMkyc is highly recommended to supplement your video KYC process. All our APIs come with multi-language support, are compliant with GDPR standards, and meet AML/KYC compliance requirements.
Benefits of Choosing IDMlive Over All Video KYC Providers
IDMlive is the only video KYC solution that can guarantee high, global, true positive match rates. We are also the only KYC provider that is sufficiently compliant, globally supported, and recognized for digital identity data management. And our APIs don’t require messy and complicated installations or maintenance.
With the highest global match rates in the industry and experience in meeting AML compliance standards, IDMERIT is the only identity verification company that can truly validate ID anywhere. And with AI-assisted technology in all our APIs, ID validation is assured through any smart device and during online KYC verification. Only a few video KYC providers can verify accurately and out of that rare group, we are the only one to do so using over 2000 watchlists to ensure no bad actors are onboarded.
With IDMERIT, it is not just about fancy video-based KYC. It’s about your company truly meeting AML compliance. To do this your video KYC process must fulfill the requirements of your customer identification program and know when to use enhanced due diligence for high-risk customers. Part of this is accurate document verification. Documents can be forged. Scanning reduces the risk that a screenshot image would miss.
Another crucial factor in risk assessment is behavior monitoring. True, a trained professional would be able to identify some unorthodox behavioral traits, but biometric scans, email maturity, spam checklist, and geolocation would not give bad actors a 50/50 chance. By monitoring tiny devices and behavioral changes we would be better equipped to assess risk better than a live video feed alone.
And we do this while still being competitively priced to meet your AML compliance budget. Using our IDMkyX platform of APIs can significantly reduce AML compliance costs. Don’t keep letting your customers suffer or putting your business and bank account at risk.
Talk to us today. Let us prove why we are the best at video KYC verification.