Know Your Customer (KYC) verification methods are improving as time passes. In past manual KYC verification, an employee of an organization personally verified every customer by checking the customer’s documents. This process was slow and contained errors, more resources were used in this method. Then KYC verification is automatic, the software does all the verification of the customer. Now the customers do not have to physically visit the offices for verification. Initially, software partially eradicates the manual intrusion, humans only cross-check the results. The businesses saved their time and resources by adopting an automated KYC verification process-KYC in Fintech Industries
Then a revolution entered the KYC industry that was KYC Video Verification. This method was more fast and convenient. The customer connects with a KYC expert on a video call and presents all documents to the expert. The KYC expert does all the verification through a video call from identity verification to document verification. Secondly, this process does not need any specific digital gadgets, customers can be verified by just using a mobile or laptop. KYC video verification system is empower with extended AI and ML algorithms. Security video call recording is also available in this method for future-proofing.
The Top 5 trends of video KYC in fintech industries are listed below:
KYC and AML Compliance
FATF, FTC, EU, and FinCEN have issued directives to counter financial cyber crimes like initial coin offering, money laundering, and terror financing. Know Your Customer (KYC) and Anti Money Laundering (AML) compliance are mandatory for every fintech business to adopt as directed by the Financial Action Task Force (FATF). Businesses can be fined or blacklisted as a consequence of not complying with these regulations. KYC video verification can help businesses smoothly KYC and AML compliance by onboarding customers securely.
Reduce Numbers of Identity Theft and Accounts Takeover
The most recent cybercrimes that have created troubles for both businesses and customers are identity theft and accounts takeover. Fraudsters try to impersonate some users to perform online illegal activities. They do that by stealing personal information like name, DOB, and especially the social security number of the user. Then they try to open online accounts to get financial benefits and other scams with the minimum risk of being caught.
Account takeover means using a legitimate user’s account with his consent. This is accomplished by getting access to the username and password. Fraudsters get this information by phishing or malicious activities. After getting the access they usually transfer funds from that account or use it for money laundering activities. These accounts provide ease in circulating money to hide the source.
KYC visual verification ensures only genuine customers are onboard eliminating the threat of identity theft and account takeover.
To make the earth’s ecosystem more green and healthy, the reduction of paperwork is the first work. Many organizations have already moved their work to digital platforms like email conversations instead of letters to lessen paperwork. In other words, KYC video verification eliminates the paperwork completely by doing all the verification operations digitally.
The physical verification method was very stressful for customers and businesses. The customer has to schedule the verification date from their personal calendar. So this process was time taking, and businesses can verify customers remotely. So the customer just needs to have a cell phone and a good internet connection for verification. Customers can verify themselves in just two minutes.
Enhance Customer Experience and Reduce Drop-offs
The traditional verification process was irritating for customers because of the high rate of drop-offs. Customers leave the verification process due to long and multiple steps. Statistics show that 53% of users leave the site because of slow processing. However, to engage customers on websites, a fast and smooth verification method was inevitable that can be achieved through KYC video verification.
Wrapping It Up
KYC video verification can be used by every sector that is in the need of reliable and safe customer onboarding. KYC solution providers gave this solution. This service will attract more customers to a business website and ultimately increase the revenue of the business. The above trends show that businesses should welcome this service. Businesses are in need of some convenient and fast customer verification methods. They should go for KYC video verification that gives more secure onboarding.