The financial services industry or banking sector requires implementing stringent due-diligence processes to analyze the company and its customers during an onboarding procedure. This resulted in providing industries with an enhanced KYC. Enhanced Know Your Customer (KYC) is proven to work more effectively than the manual KYC procedure. Manual KYC verification takes time and builds-up the cost during the authentication process. By integrating an automated KYC verification, organizations could collect information and feed it to their data. Moreover, it helps industries to meet the AML compliance requirements. This means customers and businesses don’t get involved in criminal activities like money laundering, terror financing, etc.
This is the reason, automated KYC verification has become crucial for growing enterprises that work with online transactions. Since the technology keeps evolving at an accelerated pace – digitization introduced a video identification process. No matter what services are incorporated to ensure a smooth customer onboarding process – if onboarding isn’t right then it could ultimately damage the brand’s reputation. Moreover, video KYC authentication delivers customer’s ease and simplicity during online banking.
Do you know organizations can vet their customer base in mere seconds with real-time video identification systems?
Defining Video-Based KYC and Its Implications?
Generally, in video KYC customers are verified through a short video interview that involves document and biometric verification. This automated solution far surpasses the traditional method of manual verification. It introduces efficiency during the onboarding process and minimizes the cost. This way, it proves to be quite beneficial for financial institutions and customers.
Now, here’s an overview that how an automated video KYC can enhance the customer experience in the financial industry:
Video Identification in Digital Onboarding With Banks
It’s no secret that all organizations want their customers to experience an easy and simple onboarding experience. But the customer onboarding usually starts as to how the consumer starts his journey. If companies fail to secure customer journeys, they might risk losing their customers. Because it’s an obvious fact that the world is riddled with tremendous competition in almost every industry. Some customers leave at the initial stage while others might never return to the platform.
However, if you make the customer onboarding process simple – how does it ensure the blacklisted individual doesn’t make it through your system? For instance, in a bank – the customer sees that his money in the account dropped from $5000 to $100. The customer will be furious as he can’t make sense of how the bank can let it happen. The bank staff is also puzzled at the situation. So, what happened inside the bank?
To answer simply, the customer lost his identity and the bank didn’t imagine suspecting such a small transaction. Because the bank found the information to be correct and therefore, illegally withdrawing the money was allowed. Now the bank just failed to provide a smooth onboarding process that led to fraudulent activity. Ultimately, they lost a potential customer that might never return to the bank.
Video KYC in Online Customer Onboarding
Video KYC helps organizations with eliminating the hassle with manual verification of potential policyholders. Meanwhile, on the other hand, customers can comply with the onboarding procedure to complete policy procedures without having to step out of their homes. Most banks and insurance companies are making a move to integrate an automated video KYC verification solution to authenticate honest customers for policy issuance.Read : New learning Methodology for the Children
Touchless Customer Onboarding Procedure
Video KYC validation could offer great help to businesses across the globe that are looking for a contactless customer onboarding process. With COVID-19 still in question, the world is quickly moving towards this verification method to save both time and cost. Customers can verify themselves remotely without having to go from one place to another.
To ensure the verification system works effectively and meets AML requirements – several solutions in the market are relying on AI-powered facial recognition technology. Moreover, the integrity of the entire process is also ensured by a human KYC expert.
Deliver Smooth Customer Experience
Connecting with the customers effectively is becoming the primary concern for most organizations. To address the significant needs of the customer, digitization is becoming more important with each passing day. As such the video KYC makes it quite easy for the users to get verified through a live session with human KYC experts. It not only strengthens the brand’s reputation but customers also view the business as more reliable.
Reduced Cost and Advanced Security With Video KYC
Surprisingly enough, video identification helps with cost reduction. It’s considered to be quite flexible that allows for no additional cost. Moreover, it also reduces the overall cost by almost 90% for customer onboarding that KYC often consumes.
Video KYC verification is quite effective. Human KYC experts can potentially deal with hundreds of KYC authentication daily. Because manual KYC methods are cumbersome and often vulnerable to errors that increase the customer drop-off rate. However, with video KYC the entire procedure takes only a few seconds. Although the entire verification process is scalable and has no geographical constraints. Importantly, it helps to prevent various fraud attempts and errors.