Across the globe, banks, fintech firms, and insurance companies are reshaping the financial industry, and they continue to function as the backbone of any progressive society. Unsurprisingly, these companies operate with the support of critical tools that broker a stable connection between client and company, and KYC solutions are an important part of that association.
These tools focus primarily on customer identity verification during the customer onboarding phase. Along with identity verification, compliance with regulatory standards is just as important for the smooth operation of these financial institutions, and in this regard, KYC solutions for banks, fintech, and insurance companies are very useful. They provide a way to build a relationship based on honesty and trust, which are critical pillars for the industry to prosper.
The Growing Significance of KYC Across Industries
Money laundering, identity fraud, terrorist financing, tax evasion, illicit financing, financial scams, and other crimes pose a serious threat to banking and non-banking sectors globally. That’s why financial regulations are tightening across borders to deal with these threats.
KYC solutions in the digital realm are essential in protecting clients and respondents against such financial crimes and satisfying the requirements imposed by KYC and AML policies. There are multiple reasons for this:
- Banks employ KYC procedures to check the validity of potential customers prior to onboarding, assuring adherence to regulatory obligations.
- Fintech firms authenticate the identity of their customer before digital transactions.
- Insurance companies need KYC solutions to verify the identity of the customer during their onboarding process for policy purchasing and during policy claims by policyholders.
- Cryptocurrency platforms perform KYC checks for secure crypto exchanges.
- Forex businesses authenticate the identity of a person who tries to change currency.
- Trading platforms verify the identity of the customer before trading.
- Financial institutions perform their due diligence during the onboarding of new clients, along with a risk analysis.
What is a Video KYC Solution?
Video KYC (Know Your Customer) is an identity verification process in which customers’ identities are verified in real-time through a live video call with a verifier. These verifiers authenticate identities over the call while the customer shows their ID documents. Verifiers match the face with a picture on the ID document and ask questions related to their identity.
This method ensures the authenticity of the identity documents and supports the results with facial recognition and liveness detection. It reduces customer onboarding time while setting the seal on regulatory compliance. It eliminates the risk of identity fraud and secures business for banks, fintech firms, and insurance companies.
Why Is Video KYC a Game-Changer?
Video KYC solutions are reshaping identity verification procedures for financial and non-financial industries worldwide. Video KYC solutions have revolutionized the way banks, fintech companies, and insurance companies verify the identities of their customers. Traditional in-person verification methods are time-consuming, costly, and often inconvenient for customers.
On the other hand, Video KYC verification brings automation, real-time checks, and scalability. Digital KYC is a quick identity verification method that saves time and provides a smooth customer experience.
Key Benefits of Video KYC
There are many reasons why video KYC solutions are trusted by banks, fintech, and insurance companies.
Real-Time Identification:
Video KYC solutions help financial and non-financial businesses to authenticate identities in real-time, and they reduce the need for physical presence. It provides a better user experience without any manual effort.
Quick Onboarding:
Video KYC providers assist in verifying identities quickly. They deliver accurate results for a quick onboarding process and ensure smooth business operations for banks, fintech, and insurance sectors. These tools allow for a seamless onboarding process followed by secure business transactions.
Enhance Customer Experience:
Acknowledging everyone’s busy schedules, video KYC ensures a fast identity verification process and a smooth user experience. It also guarantees a brand reputation for following regulations properly.
Compliance Ensurity:
Video KYC assists in guaranteeing KYC compliance and prevents regulatory penalties for non-compliant business operations.
Mitigate Identity Fraud:
The Video KYC method is a real-time identity verification process that reduces the risk of identity fraud completely and prevents financial crimes.
Features of Video KYC Solutions For Banks
Banking remains the most active financial sector in any country, and customer onboarding is a common procedure in the industry. Robust KYC solutions provide seamless customer onboarding and high accuracy, and ensure regulatory compliance at all times. A trusted KYC provider for banks guards it from fraudsters and financial criminals. Therefore, it is important to choose the right KYC services provider for banks to streamline compliance and improve the customer experience.
Features that Banks Look for in Video KYC
- Video KYC multi-language support for global customers
- Real-time identity verification
- Easy integration with legacy core banking systems
- Live location detection
Features of Video KYC Solutions For Fintech
Fintech companies prioritize speed, innovation, and digital-first experiences. To make it possible, a robust KYC solution for fintech is essential. Video KYC is critical for seamless customer onboarding with strict compliance with regulations. Choosing a well-established KYC provider for a fintech firm is critical in securing digital payments and helping with fraud checks.
Features That Fintech Looks for in Video KYC
- Low-code or no-code integrations
- Rapid identity verification
- Global document support
Features of Video KYC Solutions For Insurance
Fraudsters target insurance companies more directly by making fraudulent claims. Video KYC solutions assist in authenticating the identity of the customer during the onboarding process and ensure that only legitimate policyholders can claim the insurance policy. An experienced KYC provider for insurance companies helps build customer trust and reduce fraudulent claims.
Features that Insurance Companies Look for in Video KYC
- Policyholder identity verification in real-time
- Multi-policyholder verification support
- Risk scoring and fraud flagging
Whether you’re a bank, fintech platform, or insurance company, choosing the right KYC vendor is imperative in ensuring that it provides comprehensive identity verification solutions tailored to the business’ requirements. A KYC company should have regulatory expertise, provide customized solutions, and offer end-to-end data protection. The Video KYC API should be based on a plug-and-play module that can easily integrate with any existing system to ensure versatility. Therein lies the power of the tool.
Consider If a Video KYC Solution Is Right for Your Business
Video KYC solutions are transforming banks, fintech firms, and insurance companies by providing a more secure identity verification method customized to suit their needs. They assist in real-time identity verification and reduce the effort of in-person checks. Whether you are searching for a KYC services provider for banks, a KYC API for fintech, or KYC software for insurance companies, make sure the KYC partner is well-versed in regulatory compliance and provides customer support and customized identity verification solutions.
Ultimately, video KYC is an advanced KYC method that reduces the risk of identity fraud and assists in facial recognition for additional security. Banks, fintech companies, and insurance firms can prevent potential fraud by implementing advanced KYC solutions.
IDMERIT is a trusted global KYC partner that provides comprehensive identity verification solutions for banks, fintech firms, and the insurance industry. They are committed to making the world fraud-free by assisting the financial sectors with an advanced KYC API to safeguard businesses from financial criminals, fraudsters, money laundering scams, and attempts at identity fraud. It’s time to choose a trusted KYC partner, secure your business for the long term, and keep ahead of the curve in the competitive market.
