Video ID validation is an advanced approach towards identity verification which ensures unbeatable fraud prevention.
KYC is an important aspect of the customer onboarding procedure and it has become sophisticated with time. Technological innovation has transformed the modern world and introduced significant changes in the business workflow. Among all industries, banks and financial institutions pay special attention to the customer onboarding experience to offer a positive experience.
The shift to digital transformation has helped industries deal with various challenges during the onboarding process. The application of KYC video systems has played an important role in overcoming obstacles and ensuring compliance with KYC and AML regulations. KYC video systems have easily streamlined the onboarding process and help companies to deal with changing regulatory standards.
KYC Video Solutions: A Quick Insight
Video ID validation is an advanced approach towards identity verification which ensures unbeatable fraud prevention. During the video session, a KYC expert gets connected with a client and guides them through the whole process.
During the live meeting, the expert asks the customer to submit proof of their government-issued records for in-depth authentication.
In modern times, industries are looking for better approaches that help them deal with consumer demands and thrive in the digital era. Implementing Video KYC can help modern-day industries regarding this. The following industries can take advantage of AI-driven KYC video systems:
Facilitating the Banks & Other Financial Institutions
Banking service providers and other firms have always faced strict scrutiny from global regulatory authorities. With the introduction of KYC and AML regulations, the ID validation of all customers has become mandatory for all financial firms. In this way, banking service providers can easily forgo manual validation procedures that are time-consuming and resource-draining. Applying KYC video systems can help validate client identities instantly while sticking with KYC and AML regulations.
Supporting the Payment Industry
The need to conduct proper due diligence procedures has increased more than ever to discourage fraud and identity theft. After the introduction of AMLD5, the payment industry has come under the supervision of global regulatory authorities. For this reason, it has become essential to implement the latest KYC procedure. The payment sector can secure monetary transactions against external attacks and deter money laundering through KYC video systems.
Protecting Insurance Companies
Insurance service providers face a number of scams on a regular basis. By using fake documentation and ID credentials, criminals can easily exploit the insurance sector. This way, both business owners and victims of crime have to face the negative consequences of serious crimes. With KYC video systems, insurance firms can easily authorise customers and discourage fraud.
Helping Remote Corporations
During the pandemic, remote work became popular which resulted in rising cases of fraud and external threats. Cybercriminals took complete advantage of the scenario and took complete advantage of sensitive information. Through KYC video systems, companies can easily guarantee that they are onboarding genuine clients.
Assisting the Mutual Funds Industry
This is a place where various investors invest their funds to purchase stocks and securities. This is called the mutual funds industry. The accumulated money is gathered by major authority figures which then gets utilised in multiple investments.
The whole KYC procedure is mandatory during the onboarding process to attract genuine investors and deter bad actors.
Nowadays, the application of KYC video solutions instantly verifies customer ID credentials while protecting the mutual funds sector.
Applying KYC Video Systems for Non-Banking Financial Companies
This is different from mainstream financial institutions because NBFCs do not have bank licences but work just like regular banking entities. The main objective behind such companies is that they target specific audiences and offer services.
Contact-free KYC onboarding has transformative power for NBFCs. Digital video KYC solution can be completed instantly. This way, the concerned sector can save time and capital and pay attention to high-priority tasks.
According to Report Linker, the global KYC video systems will grow at a CAGR of 16.97% from 2021 to 2030. The demand for innovative technology is increasing across the globe as it minimises onboarding expenditures and eliminates time wastage. This way, company workers can pay attention to high-priority tasks. Finally, the surge of technology use is also contributing to the massive growth of the market.
Concluding Remarks
The application of KYC video can help modern-day industries streamline their onboarding procedure and attract genuine customers. This way, corporations can easily save time and company resources. That being said, KYC video solutions can ensure effective fraud prevention during the onboarding process.
Implementing a PCI DSS-compliant solution can help modern-day enterprises secure a strategic advantage and attract genuine customers worldwide. Hence, the significance of applying the innovative solution becomes obvious.
