Opening accounts have experienced an enormous shift in digitization. The conventional Know Your Customer processes that entailed physical documents and visits to the office have been replaced by new methods. Video KYC is among the latest methods to have made account opening easier. It is now safer and more effective for the bank, and its clients.
The value for Video KYC for account opening is reviewed in this article. The benefits of it, the drawbacks as well as the way it can be an essential tool in the banking industry are examined.
What is Video KYC?
This technique allows banks to confirm an individual’s identity by making use of video conference technology. Video conferencing technology, together with Artificial Intelligence(AI) can be employed to prove a person’s identity without needing to visit branches. The eKYC method involves utilizing technology that makes the registration process simpler.
Live video call typically is performed by bankers. On this call they’ll show the banker ID documentation like passports and ID cards. A representative will scrutinize these documents live, and then compare the person’s image against their photograph ID.
What is the Game-Changing Power of Video KYC?
Accelerate Account Opening KYC procedures are time-consuming that requires multiple trips to branches and the handwriting of documents. Additionally, they require a considerable amount of time. The use of Video KYC can cut down the amount of time it takes to finish this process. The procedure, which was once thought to be for several days, is now a few minutes.
Get a more efficient shopping experience
There is no appointment required for clients to visit the branch. Utilizing a smartphone, tablet or laptop, they are able to complete the KYC while at home or the office. A simple and convenient use of smartphones, tablets or laptops is extremely convenient to those who are living in an ever-changing world, in which efficiency and time are crucial to client satisfaction.
Banks can save money by using this method.
Video KYC lowers the costs of manually verifying. Through reducing documentation, administrative costs and the amount of individuals required to complete this KYC physical, the banks are able to reduce costs. Savings are essential, especially for banks with large scales that manage numerous client onboarding procedures.
Security measures have been improved and there is a greater chance of the prevention of fraud
AI-driven video KYC utilizes technology to identify and avoid fraud, in addition to identifying abnormal behavior. In comparison to the security level against conventional KYC It is much more difficult for criminals to make use of the loopholes. Banks are able to be sure that the verification procedures they use are protected and free of mistakes.
Accessibility and expanded reach
In areas that are remote and rural in which physical access is only restricted to banks’ branches and other banks, a video KYC can be an excellent method to access services. Banks now have the ability to provide services to a wider range of customers, through the elimination of their need to check in person.
The Challenges of Traditional Banking and Video KYC
Minimizing Human Error
The manual KYC process is vulnerable to human error and can lead to incorrect data entry or insufficient data entry. This can lead to delays, and possibly compliance problems. Because video KYC is automated, KYC along with the data extraction software as well as verification software, reduces the chance of errors and gives more precise results.
Streamlining Compliance
In the world of banking it is essential to comply to KYC regulations is vital for avoiding penalties as well as maintaining the trust of customers. It’s crucial to keep in mind that video KYC doesn’t just comply with the requirements of compliance but also is updated regularly to keep current with regulatory changes.
The need to manage the increased demand in crises
COVID-19, recently identified as an infectious virus that circulates through the air and gets carried by mosquitoes, has drawn focus to the necessity of remote and contactless banking. Video KYC is now the most preferred choice for opening accounts because of the Social Distance regulations.
Better Record-Keeping
Videos KYC creates digital documents that are quick to locate to save, view, or even download. Digital documents provide a clear and traceable means of onboarding the new customer while also helping with managing records and reducing the likelihood of disputes.
What steps are involved in the video KYC?
The video KYC is a set of steps that are designed to give an insecure and trustworthy authentication.
The request is initiated by the customer initiating the request by filling out the online form to establish an account. The application requires some basic information like your name, the individual applying as well as their email address and telephone number.
How to schedule the video call A representative from the bank arranges for the customer’s video call on a date and time.
Validation Documents: A bank’s representative will require clients to present the original identification documents in the course of the call.
Facial Recognition Liveness Test: AI instruments of the bank can match faces of customers to ID documents with facial recognition. Liveness tests are also conducted to verify that the person being tested is actually present at the spot and not just a recording video.
The account will be created after verification has been successful. The account is opened once the verification has been successful. or Email.
Compliance and Regulatory Guidelines
A number of countries are using Video KYC in their regulatory frameworks. Video KYC has to be approved by the Reserve Bank of India to be considered an acceptable process for onboarding in India. The regulators in Europe, North America and other parts around the globe have also granted their approval for the digital KYC. This is an indication of the global growing trend towards using this method of verification. Regulations will ensure that the video KYC is carried out securely and efficiently.
The Future of Video KYC
The end isn’t over for the video KYC. It is possible that this area will see additional technological developments as technology improves. Video KYC is likely to become impacted by application of AI biometrics and predictive analytics for the security of data. To increase satisfaction with customers, decrease cost and enhance security, banks will continue developing the procedure.
Video KYC is an option that’s sustainable which is in line with the goals of digital transformation in the banking sector. Video KYC is more than just an idea. It’s a viable option which is compatible with the objectives of the digital revolution in the banking sector.
Conclusion
Banks are now using videos KYC for welcoming clients. Video KYC is a low-cost easy, quick, and efficient alternative to traditional KYC method. Video KYC is a vital element when the banking sector moves toward a more open and modern global.
The use of video KYC by banks does not just mean they’re up-to-date using the latest technology. In order to provide the highest quality customer service. It is crucial for the development of banking.
Tags: Banking InnovationDigital BankingVideo KYC