Video KYC – The New Face of Real-Time Identity Verification

Traditional onboarding is a drag. But what if verifying your customers was fast, secure, and completely remote? Video KYC (know your customer) is the game-changer you’ve been waiting for. It has been introduced as a revolutionary answer to meet these needs. Video KYC solutions are being adopted by industries such as banks, financial institutions, healthcare sectors and fintech companies among others to ease the authentication process. Compliance is ensured by just a simple video call thereby eliminating friction and building stronger relationships. Video KYC software can equip businesses to adhere to regulatory compliance requirements while giving their customers a smooth and seamless experience.

Video KYC is quite different from the conventional KYC process that usually involves a lot of paperwork and in-person meetings. The idea is to use technology to facilitate real-time remote identity verification. This advancement not only improves user friendliness but also strengthens compliance and security in organizations.

An effective video KYC solution relies upon integration of advanced technologies such as facial recognition, AI and machine learning among others. These technologies work collaboratively during a video call in order to establish one’s identity.

Where is Video KYC Needed?

Video KYC is now a regulatory requirement in many countries across the world. Let’s now look at some of the key regions where video KYC has been made mandatory:

Germany

Germany was amongst the first few nations to adopt video KYC for remotely verifying identities. In Germany, BaFin makes it compulsory for any bank or financial institution operating in the country to employ video KYC as a means of verifying the identity of their customers. Therefore these regulations ensure that institutions adhere to strict AML and CTF laws designed to combat money laundering and terrorism financing respectively.

India

India has adopted video KYC in order to support its digital ecosystem. The Reserve Bank of India (RBI) had issued guidelines on adoption of video based Know Your Customer by banks for customer identification procedure. This is all aimed at curbing financial fraud and facilitating smooth customer onboarding.

Singapore

Video KYC is also supported by the Monetary Authority of Singapore (MAS), the financial regulatory authority in Singapore. Financial houses should have access to video know your customer services which serve as additional security measures while using digital banking facilities according to MAS guidelines.

USA

FinCEN permits videos taken during KYN exercises as part of its CDD rules. In this regard, they encourage players in the financial industry to embrace Video KYC applications so that they can be more compliant with AML standards that they are subjected to.

Video KYC - The New Face of Identity Verification

Rising Need of Video KYC Among Industries

There are now more and more industries employing video KYC services to streamline their business processes and compliance systems. These include:

Banking and Finance

The primary users of Video KYC are the banks as well as other financial institutions operating in the finance industry. By observing all regulatory requirements and reducing the time spent on traditional KYC methods, this will help verify new customers at these banks. Nothing works better than video KYC because of strict regulatory demands, robust security features. Apart from that it also facilitates on-boarding processes, mitigates fraud risks and complies with KYC rules.

Cryptocurrency

With correct identification of users through Video KYC, cryptocurrency exchanges and platforms would minimize instances of money laundering or fraud that may be experienced within these sectors.

Fintech

By simplifying customer onboarding processes, improving security and meeting regulatory requirements using video KYC, fintech companies offer innovative financial instruments while upholding trustworthiness and openness with clients.

Healthcare

The healthcare industry uses video KYC for patient validation so that medical treatment can be given only to genuine recipients. This is crucial particularly for telehealth offerings which have experienced tremendous surge in demand.

Insurance

The insurer will use video KYC to confirm the policyholder’s identity so as to prevent fraud and facilitate expedient processing of claims.

Online Gaming

Video KYC is adopted by online gaming sites in order to verify the identity of players thus conforming with age limits as well as minimizing cases of fraud hence enhancing security and fairness in gaming.

Travel Industry

In the travel industry, video KYC confirms the identity of travellers during booking and check-in procedures thereby boosting safety and customer satisfaction.

Telecommunications

Video KYC assists telecom companies in user authentication during the onboarding process for regulatory reasons and also minimizing fraud.

Pros of Video KYC

Few of the myriad benefits offered by video-KYC is that it provides an attractive solution for businesses across a spectrum of industries including:

Cost Effectiveness

Adopting video-KYC over traditional face-to-face verification methods saves costs. This minimizes the need for being physically present at branch networks and workforce subsequently conveying substantial savings.

Fraud Prevention

Real time verification and detecting fraud make video KYC secure. This proactive approach helps businesses fight identity theft and financial fraud.

Improved Customer Experience

Video KYC facilitates a fluid onboarding system that is efficient thereby enhancing customer experience overall. Customers do not need to visit the premises for verification because they can do it from their homes.

Accessible Remotely

The major benefit of video KYC is its remote accessibility. Any business can onboard clients from every corner of the globe, smashing geographical barriers and expanding their footprint.

Video KYC - The New Face of Identity Verification - CTA

How Does IDMERIT’s Video KYC Solution Look Like?

IDMERIT provides a strong video KYC solution referred to as IDMlive that has been built to address the growing needs of businesses operating in different sectors. IDMlive is an all-in-one platform which has 24/7 service with live representatives who are available for immediate verification of customers’ identities. This innovative solution ensures that even the most difficult-to-verify clients are not lost during the onboarding process, maintaining a high level of customer acquisition and satisfaction.
IDMlive is also one of the best video KYC platforms that have several features enhancing security, compliance, and user experience:

  • Personal Identity Verified by Live Agents
  • Multiple Document Acceptance
  • Supports Different Languages
  • Regulatory Compliance
  • Easy to use Interface

In conclusion, IDMERIT’s IDMlive is an advanced video KYC solution that combines automated systems efficiency and human touch from live agents. It guarantees secure, regulatory-compliant and frictionless client onboarding making it invaluable for businesses in various sectors. By providing round-the-clock services, supporting multiple languages, and accepting different identification documents, IDMlive sets a new standard in real-time customer authentication.

Jay Raol
Jay Raol

Jay Raol has been a Media Manager, Entrepreneur, Political Analyst and an Environmentalist. He aspires to climb the mighty Himalayas, and learn a new language every year. He lives in the beautiful city of Carlsbad in Southern California and owns a great collection of books. He is on schedule to publish his first book; 'Thou Art, Dope'. Co-founded two companies that provide futuristic solutions to the world while being quite enthusiastic about helping and investing in technology startups.

Get Notified about Industry Updates
Loading