With the advent of modern technology, the prevalence of online crime has increased. For this purpose, KYC guidelines have become strict. ID document authentication has become critical for businesses during the client onboarding process. It is important for securing the database of the companies or else data leakage is inevitable. There are different types of distant (remote) customer identity verification. These steps are important because they keep the company’s AML regulations compliant. Nevertheless, there is the latest method which is getting famous widely.
Video-based KYC Solution: What is it Actually?
The video-based customer identification system carries out through an in-person interview. Usually, there is a KYC professional in a video call who leads the interview. The new technology is the perfect combination of human smarts and artificial intelligence. It gives accurate results in the end.
Different types of enterprises that are prevailing in the banking sector especially need an advanced client verification system. It is significant for financial companies to acquire the advanced method of identification to stand out in the market. Hence, the video KYC is a compatible solution for corporations all over the world.
Why Is There a Need for a KYC Professional?
The end-user should fill out a registration form first. After this, the customer connects with a KYC expert. The KYC professional leads the sessions and verifies the identity of the client. the customer should submit a handwritten consent before data collection. The KYC expert should be able to see it through the webcam. There can be any kind of document e.g. ID card or passport. The expert also asks the client to move the documents so that special features of the original documents become obvious. It is important because any form of spoofing or identity theft should not happen.
How Significant is Facial Recognition Technology in this Context?
In between the authentication procedure, the artificial intelligence-based facial recognition of clients happens. It facilitates because of the liveness detection characteristic of the advanced technology. The face recognition process is quick so it shows results fast. The technology also checks for modification and fabrication in the submitted documents. After thorough verification, the owner gets the final outcome. These steps are important to perform for long-term fraud prevention and showing compliance with the higher authorities. The technology is fast and convenient so it is highly productive as compared to manual labour.
The Role of Technology During the Global Pandemic
During the peak time of COVID-19, a lot of technological advancements happened in enterprises. It is important that the banking sector upgrades its set-up so that it can take a stand in the competitive market. It also signals a sense of safety to the customers. It is significant because the rate of crime is growing on a regular basis. The regulatory bodies have also become stringent because they want to ensure that financial crime incidences decline. The latest technology has facilitated corporations in client verification.
Why should there be a Video KYC application in businesses?
The video verification system has become trendy these days. It has brought a number of positive changes in business operations. A number of business owners give credit for their progress to the technology. The technology makes the authentication procedure cost-effective and less time-consuming. The companies are sticking to the new method because they want to efficiently deal with the rising identity crimes and violations of data privacy guidelines. For every enterprise all over the world, safety and security are the top priority and the video KYC supports it. It is important to implement these procedures to maintain a positive brand image in the minds of the customers.
How is KYC through a Video Call Applied in Spain?
The financial regulatory authority in Spain (SEPBLAC) demands the banking sector employ video-based authentication during the staff onboarding process. It is according to the set guidelines to make sure that clients are safe on the digital platforms.
The video-based verification method is fast and easy for the clients to perform. In this way, it has replaced the old methods quite quickly. A KYC professional facilitates the video KYC vendors’ process. The process is safe to apply in the banking sector, especially in the Fintech industry. It helps them create a genuine customer database. The other advantage of KYC video verification for companies is that it eases the process of compliance with given rules and regulations (AML/KYC). It is significant for retaining customers for long-term growth and avoiding heavy fines by the global regulatory authorities. Strict regulatory guidelines have been put in place because the number of victims of identity theft or document theft is increasing.