As the world moves towards digitization, financial firms are developing new strategies to simplify their everyday processes and align with the client requirements. Amidst these establishments is the advent of video Know Your Customer [vKYC] methodologies. These innovative services assist firms in identifying potential candidates and ensure adherence to AML and CTF standards. 

This virtual realm of the fintech industry is now integrating automated technologies within their sectors to achieve economic superiority. Video KYC has transformed everyday financial operations by coming to this ever-evolving world. These effective services are not only for domestic companies; international clients can also benefit from them. This blog will solely focus on what video Know Your Customer services are and how they assist financial firms in reducing fraud. 

What is Video KYC Verification?

vKYC manages the client identification processes. The world is moving towards remote settings because of the growing pandemics. Therefore, companies demand automated solutions to assist them while hiring new candidates or associating with clients in remote settings. vKYC completes these tasks seamlessly without taking manual assistance. It has AI and ML services that effectively accomplish everyday operations. 

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Being in a remote setting means becoming the victim of multiple imposters. With cloud-based vKYC, firms can alleviate the need for physical existence. Candidates can verify themselves by a real-time kyc video verification. These digital interviews not only provide enterprises with authentic candidates but also improve their security measures. By doing so, firms need not hire multiple candidates for the same roles because all the authentication processes are managed effectively by vKYC solutions. 

Conventional Know Your Customer Services Vs. Video KYC Solution

In conventional times, businesses had to complete the KYC methods manually. Those activities exhaust the employees, and eventually, the client loses interest in the meetings. That’s how enterprises become the reason for their dismay. With the advent of vKYC solutions, firms can now evaluate potential candidates in real-time without taking manual assistance. All the processes are done automatically; therefore, they never exhaust the employees. In addition, workers can invest their time in other productive activities to improve business efficiencies. 

Video KYC Process – Identify Customers in Four Steps

The vKYC process is vital for the financial sector because it protects it from emerging threats. This innovative approach can be executed in various steps:

Collection

The process starts with collecting the client credentials and a selfie, which they submit while completing the checkout process. 

Authentication

After the document and selfie submission, the system starts its validity. All the details are compared against the databases to learn about the user’s status. 

Comparison

In the authentication process, the client selfie is matched against the image in the ID documents. 

Final status

The final status that businesses receive from the vKYC system becomes the primary reason behind the company’s acceptance or rejection.

Video KYC Online – Explore Its Best Practices 

vKYC holds great significance for modern fintech companies because of the best practices it offers to them. Some of the most important ones are mentioned below:

1. Client Preparation for vKYC

It helps potential clients prepare for the vKYC process. Unlike traditional Know Your Customer, it makes concepts clear for the users. 

2. Streamline Onboarding Processes

vKYC conveniently streamlines the fintech onboarding processes. It never allows such candidates to get access to a company that has a criminal background. 

3. In-Depth Customer Detection 

The documents and facial features of the shortlisted candidate are deeply examined to learn whether they are authentic or not. Biometric facial recognizers are attached to the monitoring screens that detect even heat emissions and slight movements in the user’s facial expressions. By doing so, companies can quickly alleviate spoofing attacks using filtered images. 

4. Improve Adherence and Reduce Possible Risks

Video KYC regulations assist businesses in improving their compliance with the set standards. By doing so, firms need not worry about rigorous penalties and imprisonments. 

5. Consider Client’s Privacy Concerns

The innovative vKYC approach is built to consider the potential applicant’s privacy concerns. It never shares the client’s confidential details with any third party. 

Video Know Your Customer (VKYC) – Explore its Benefits

vKYC offers a variety of prerequisites to digital financial firms, some of them are: 

• It provides their potential candidates with enhanced experiences through real-time services. 
• All the authentication processes are done automatically; therefore, employees can work on productive activities, improving the business’s operational efficiencies.
• vKYC is an advanced technique that can quickly reduce scamming activities, including money laundering, low conversion rates, terrorist financing, and other emerging threats.

Summing Up

vKYC plays an essential role in the growth of both domestic and international firms. It offers effective services to the banking sectors and reduces criminal activities. Companies can integrate these innovative solutions and protect their identities from imposters. All the processes are completed automatically, providing better client services. Therefore, enterprises that want to improve their conversion rates and minimize finance-related fraud must execute video KYC within their systems.