know-your-customers

Video Call For KYC Verification – Protects Fintech Businesses From Digital Frauds

Business

Fintech businesses are incorporating online identity verification solutions to perform biometric and document verification of their customers. While fulfilling the requirement of KYC regulations to prevent identity thefts and financial frauds. Keeping in view the lapses of manuals, Video KYC is executed online and makes use of robust algorithms to verify the individual remotely. Video KYC identification ensures that an authentic customer is displaying documents in the camera with the liveness detection feature.

 

What is Video Call KYC Verification?

Video Call KYC verification is a swift and convenient procedure with which a KYC expert performs identity verification of the end-user and onboarding them. It is a secure process that helps fintech businesses to achieve an honest customer base. Furthermore, compliance with KYC and AML regulations becomes easier with the verification of the customers in the digital space. During KYC video verification, the end-user displays his Identity documents to the camera while answering some questions asked by the KYC expert.

 

Live Customer Interaction

In Video call KYC verification, there is a live interaction with the customers to verify them. The end-user is requested to display his ID documents such as an ID card or passport and answer a few questions. The KYC expert analyzes the behavior and body language of the end-user during the live video call. Facial recognition technology performs the liveness detection of end-users during the process.

 

Collaborative Audit

The end-user’s account is created after the video call KYC verification. The banks would need to conduct an audit of the system security and KYC application as recorded in the form of video. This information is authenticated and then the account is created. The collaborative audit ensures that reliable customers take a part in their financial system. If any suspicious attempt is found, the application is terminated.

 

Advantages Of Video KYC For Fintech Businesses

With video KYC verification, fintech businesses can fulfill regulatory compliance while providing a secure and seamless customer experience. Given below are the advantages of video KYC for fintech businesses:

 

Reduces Time and Cost

Video KYC verification is a swift and convenient solution that fintech businesses can utilize to verify the identity of their customers.

 

Enhances Security

Video KYC analyzes human behavior and authenticates the information in real-time to protect against digital scams. It prevents fraudsters from using fake information and documents to gain access to the digital financial system. 

 

KYC Compliance

With video KYC, fintech businesses fulfill the KYC regulatory requirements to put an end to financial crimes.

Advantages Of Video KYC For Digital Customers

Given below are the advantages of video call KYC verification for customers online:

 

Swift Identity Verification

Video KYC verification replaces the manual KYC identification process at banks. In manual verification, customers have physically visited banks to verify themselves. With video KYC, customers can verify themselves in real-time.

 

Better Customer Experience

End users display their identity documents in front of the camera for verification and answering some questions asked by the KYC expert. After the collection of the end user’s information, he will be verified.

How Is Video-Based KYC Verification Performed?

Video KYC verification is performed by following steps:

  1. The end-user is required to fill the registration form on the website
  2. After the registration, the KYC expert gets in touch with customers for identity verification
  3. The end-user is guided through the identity verification process with the video. At the same time, liveness detection ensures the live presence of the end-user during the verification
  4. A KYC expert asks permission from the end-user to collect his information for verification purposes. The process proceeds further if the end-user grants permission
  5. The system requests the end user to display his identity documents such as his passport or ID card. 
  6. The end-user is requested to display the front and backside of the ID document and tilt it at a specific angle to analyze the holograms of the document to verify its authenticity
  7. Liveness detection feature and KYC experts are highly trained to detect any signs of spoofing in documents and inspect the end user’s behavior and body language
  8. To prevent human errors, video-based KYC uses facial recognition technology to ensure the live presence of the end-user through liveness detection checks
  9. After successful verification of the end user’s face and documents, the video KYC process is complete and results are saved in the back office

 

Abstract 

Video-based KYC is an online face-to-face verification mechanism used by organizations to verify the identity of the end-user through a live call. Therefore, it prevents fraud and ensures frictionless onboarding of authentic customers. 

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