Video KYC: A Complete Guide to Streamlining Identity Verification
Traditional identity verification techniques have grown increasingly outmoded and laborious in this digital age. The growth of online transactions, remote services, and virtual interactions has made it necessary to develop identity verification techniques that are more effective and safe. Video KYC (Know Your Customer) is one such technology that is garnering a lot of popularity. This article will offer a thorough explanation of video KYC's features, advantages, regulatory environment, and future applications in a variety of industries.
What is KYC?
Know Your Customer, or KYC for short, is a procedure used by companies to confirm the identification of their clients. It helps prevent money laundering, fraud, financing of terrorism, and other illegal acts. The procedure includes detailed documentation, manual verification, and in-person encounters. Thanks to the digital revolution, a more effective, secure, and practical way of identity verification is now essential.
Evolution of KYC: From Paperwork to Digital Process
At first, KYC procedures relied extensively on paper submissions from clients. They had to provide actual papers like passports, utility bills, and bank statements. The advent of digital technology has opened the doors to digital KYC. Electronic signatures, scanned papers, and online forms have all become commonplace. However, these techniques still have efficiency and security flaws.
Video KYC has become a viable alternative to solve the inadequacies of both traditional and digital KYC processes. A secure video conversation enables businesses and lending institutions to remotely and instantly verify the identity of their consumers. It blends the ease of internet communication with the assurance and security of in-person verification.
How Does Video KYC Work?
Knowing how video KYC functions will help you understand how you can seamlessly integrate it into online services like KreditBee. It enhances your loan eligibility and improves the entire experience. Let's explore the inner workings of video KYC.
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Customer Onboarding Process
Video KYC begins with the customer initiating the process by submitting their details through a secure online platform. Next, a trained agent schedules a video call with customers and guides them through the verification process.
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Face Recognition and Liveness Detection
Advanced facial recognition algorithms analyse the customer's face to ensure it matches the photo on their identity document. Liveness detection technology detects and prevents spoofing attempts by verifying the user's liveliness.
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Document Verification
You have to present your identity documents, like your passport or driver's licence to the camera. The system uses optical character recognition (OCR) technology to extract relevant information and verify the authenticity of the document.
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Live Video Interaction
The video call allows the agent to interact with the customer, ask additional questions, and assess their overall demeanour for any signs of suspicion or impersonation.