KYC is a process of customer identification that helps companies determine the risk potential of their clients and investors. It is necessary for companies to replace KYC manual processes with digital ones. KYC video identification solutions allow up-to-date security measures to secure organizations from complex crime strategies. Manual KYC practice cannot detect criminals’ innovative strategies and gives ways to criminals who practice money laundering and financial loss. Compliance with KYC regulations takes companies time, resources, and cost. An automated KYC video verification service is the best to tackle this biggest issue for financial institutes and businesses.
Why is it Essential to Comply With KYC Regulations?
Know Your Business (KYB) is essential compliance that legal authorities impose for organizational security and success. Companies use digital KYC verification checks during the customer onboarding process to authenticate individuals through robust measures. KYC compliance is the latest regulatory requirement, and it enables companies to safeguard themselves against financial fraud. Many companies undergo heavy fines and reputational damage for unconsciously becoming part of illegitimate activities. They do not use cutting-edge securities and are victims of criminal strategies. So, companies must ensure that they do not become a part of any criminal activity, and KYC video is the best practice regarding this concern.
Video KYC Verification for Financial Sectors and Digital Business Processes
Financial institutes and businesses are the most vulnerable to criminal activities. Imposters utilize various strategies to approach banks and businesses for data breaches and transactional loss. Businesses now utilize digital transactional service, which requires complete security from hackers and criminals. They require reliable solutions to deal with only legitimate entities across the globe for successful service deliveries.
Compliance with KYC regulations evaluates financial fraud, exposes false identities, and protects businesses from ever-growing illegal activities. KYC video identity verification step provides complete security from deep fakes, spoofed images, and fake IDs. It enables companies to unveil fraudsters and protect their landscape from fraudsters.
Major Perks of KYC Video Identification Process for Remote Onboarding
For the video KYc process colonies mainly hire an agent who verifies user IDs in live interviews and on video calls. It provides an enhanced security layer by validating the user on a video call. Automated KYC video verification helps businesses quickly validate identity documents, capture biometric data, and remotely cross-check the papers with a third-party database. It also enhances the customer experience by assisting them with all their verification remotely from their home. Digital KYC is robust AI technology that can read, extract, and validate the data like the human eye but is less error-prone.
How Does KYC Verification Help Firms Authenticate Customer Identities?
The KYC verification is done through independent and reliable documents to authenticate data or information about the client. However, it thoroughly analyzes the users’ submitted documents to authenticate their legitimacy. In addition, it helps companies comply with anti-money laundering regulations in many industries, including banking, finance, and other sectors where customer due diligence is necessary. However, the KYC verification process works in the given steps:
- In the very first step, firms verify the user’s provided information with their official documents, such as ID cards, address proofs and driver’s licenses. However, users can easily confirm their identities from anywhere with the help of automated KYC verification solutions. They only have to join video calls and live interviews and upload the required documents on the digital KYC platform. Many companies hire a KYC agent who helps to verify users in a video call.
- After ID document and address proof checking , next comes biometric verification after businesses verify biometric data such as facial and voice recognition to authenticate the individual identity. This step adds a layer of protection to the KYC process and bolsters companies’ security. The automation KYC verification makes this more simple by video call. Businesses can smoothly perform this process by video call, which makes the customer onboarding experience fluent. Automated facial scanners verify facial data and secure companies from spoofing and deep fakes.
- Finally comes the stage of automatic cross checking of information obtained from video call, ID documents , address proofs and live facial recognition. Pre trained artificial intelligence models match data and validate it. This process further involves sanction check and watchlists identification to provide enhanced security from criminals.
Final Thoughts
KYC verification plays a vital role in businesses to protect them from identity theft, financial fraud, and other illegal activities. The video KYC process is the most innovative strategy, and it enables companies to practice more reliable ID verification and risk assessment solutions. Automated KYC verification ensures companies’ compliance with regulatory requirements, eliminates money laundering, and provides financial security. Additionally, it allows a thorough individual inspection for secure business processing across the globe.
