The finance and banking sector is becoming increasingly digitized and globally accessible. Consequently, we are witnessing a sharp surge in the demand for remote identification services. The goal of KYC video identification services is to make life easy for banks and their customers.
The financial institutions of India face a number of issues. KYC and other compliance processes are a couple of them. At present, there are quite a few solutions provided by fintechs for digital transformation in the market. These are stable and secure enough for financial companies to adopt right off the board.
The Need for a Global Digital Trust System
Since the world is getting more and more connected, people today want to access services from the comfort of their homes. When it comes to the identification process, carrying out banking procedures becomes a hassle in these scenarios.
This is where ID Identification comes in. A KYC video identification process allows banks and other financial institutions to verify customers while onboarding them through video over the Internet.
This is an attractive option for financial companies. It eliminates security vulnerabilities and minimizes loopholes. Identity frauds deter our growth as a financial institution and as a nation. This will allow financial companies to build a global network of customers.
Used effectively, KYC video identification can help speed up customer onboarding. And, it helps with KYC/AML compliances. Online video KYC eliminates security gaps by combining human scrutiny with both software and AI and ML-enabled learning.
Use Cases and Applications of Video KYC
Video KYC has started it’s journey across the financial services industry. Institutions like banks, lenders, investor onboarding and ICO’s have shown a great interest in the potential of VideoKYC.
A KYC video identification system can allow all of these organizations to maintain excellent standards of compliance and trust while not compromising on the customer experience.
The Challenges with Legacy KYC Process
Traditionally the KYC process has been tedious and cumbersome in terms of:
- Maintaining physical documents that occupy space, take time, and utilize manpower.
- Processing documents offline which brings with it the threat of misuse of documents.
- Delays in processing the files hamper the customer experience. Usually known as increases in the turnaround time (TAT).
- In-person verification: Requires the person’s availability and beats the globalization of financial services.
The time and cost involved in the legacy KYC process hamper the efficiency of a banker. You can choose to eliminate this hindrance by using video KYC.
Choosing the right KYC Video solution
There are quite a few solutions available in the market that promise to transform the traditional KYC process and upgrade it. We encourage you to look for these indicators to make sure your investment in a video KYC solution brings maximum ROI.
- The solution should an offer exceptional face match score. Comparing the following two will help to eliminate the possibility of any fraudulent activity:
1. Photo identity submitted by the customer, and
2. The real-time video session.
- The solution should have AI and ML embedded to detect and eliminate static photographs or pre-recorded videos.
- The offering should also be able to check the liveliness of the user by carrying out a speech test. This is where the user is prompted to speak a series of numbers or words which is then matched with the audio recorded on the live streaming.
- The solution should be integrated with video forensics to detect tampering or misuse of any nature.
- The software should be easy to implement with an API, SDK, and a webcam for video KYC.
- The proposed offering should have a quick turnaround time and should ideally take only a few minutes to complete the verification process.
- An added provision of completely automating the video KYC process should also be a part of the solution.
- The solution is 100% compliant with the local regulations.
- The proposed solution can reduce overheads and backlogs in operations by upto 70%.
- Installation and usage is hassle free for most users as the solution is platform agnostic and follows a Plug-n-Play approach.
- A seamless interface provides a superior customer experience for a competitive advantage in the market.
- A vibrant, engaging solution reduces customer drop-offs by upto 50%.
Paperless video KYC can empower financial organizations and change the way customers are treated and brought onboard.
How Does Video KYC Work?
- The customer fills up a registration form on your website.
- The customer provides relevant document identities such as National IDs, driver’s licenses or Passports.
- A customer verification specialist connects with the customer on video, or an automated process is triggered for video KYC.
- Using their smartphone or a webcam, the customer can be directed through the video KYC process in a seamless manner.
(To completely eliminate any chances of error, along with AI and ML, facial recognition technology can be leveraged here.)
- Once the documents are verified and the user is identified over a live video, they are sent back to the bank’s website. Next, the user can submit the process of onboarding.
Advantages of Video KYC for Financial Companies
Financial institutions stand only to gain from Video KYC solutions.
- Save time — Video KYC speeds up the onboarding process significantly. It allows you to process more applications at the same time and increase revenue. Also, you eliminate the need to train your staff on identity verifications because you have an automated system helping you with it.
- Save money — Identity frauds can cost you money. Video KYC procedures save time and keep fraudulent people at bay.
- Compliance — Meet the necessary Anti-money laundering and Know Your Customer compliances with a video KYC software that already complies with the Indian regulations.
- Improve security — Video KYC software solutions are powered by AI, ML, and facial recognition technology. These are far superior and secure alternatives to traditional KYC processes.
- Gather data — With video KYC, you can record all conversations and keep this data for future reference.
Video KYC Solution from Signzy
With the KYC video solution we offer, you can:
- Match the provider of documents with their identity on the documents through face match algorithms.
- Build trust with the customer through a live video feed.
- Verify the actual documents with forgery detection algorithms.
- Trust the document provider with algorithmic risk intelligence.
When our first client used our video KYC product for customer onboarding, they achieved jaw-dropping results:
- Reduced TAT by 55%
- Slashed rejections from 9% to 2%
- Increased sales productivity three times.
Signzy is now completely integrated into the core customer onboarding process of over 15 enterprises in the BFSI sector.
Use our new-age trust protocol to improve customer experience, cut down costs, and simplify onboarding.
Signzy is an AI-powered RPA platform for financial services. No matter how complex your workflow or operational complexity, Signzy is able to completely automate your back-operations decision-making process into a real-time API. This is possible due to a combination of Nebula — Our no-code AI model builder and our Fintech API Marketplace of over 200+ APIs. Today we work with over 90+ FIs globally including the 4 largest banks in India and a Top 3 acquiring Bank in US. Globally we have a strong partnership with MasterCard and offices in New York and Dubai to serve our customers in the 2 geographies. Our Product team of 120+ people is building a global AI product out of Bangalore.
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Author: Tathagata Chakrabarti
Bio: I am a Technical content writer who likes to talk about new innovations on banking, technology and other areas.