With the advancements in technology, the risk of fraudulent activities has increased too. In order to protect the customers from fraud and to decrease the chances of errors and omissions in the verification process, banks have started to adopt Video Verifications. The latest authentication software helps banks and financial institutions facilitate their customers by allowing them to open bank accounts without having to personally visit the bank. But before we dig deeper into the use of Video verifications by Banks, we need to understand what is a verification video.
What is a Verification Video?
Video authentication is an online process for the identification of a person. It is done on a video call with a KYC specialist. This video call, done for verification purposes is called the verification video. It is a part of the video KYC. The verification specialist conducts the video call in which documents, signatures, and facial recognition are authenticated along with other liveness checks.
What is the Process of Video Verification?
The process of Video Verification is very easy and simple, quite similar to the traditional KYC. However, the major difference between the traditional KYC and Video verifications is that the traditional KYC uses the face-to-face video call as the medium for carrying out the KYC verification procedure. Whereas in the video verifications process, users must authenticate their identity by presenting real Identity documents during the call. Video-CIP makes use of omnichannel customer engagement through which customer and document verification is carried out while being on the call.
There are two types of Video KYC:
- Assisted Video KYC: In assisted verification, the user is assisted by an agent regulated by the organization. The user gets on a live video call where the ID document is evaluated by the Agent and checked for forgery. The agent also captures selfies and verifies if the user is real by asking different questions.
- Unassisted Video KYC: In unassisted Video KYC, the user completes the steps on his own without being assisted by an agent. The user scans the documents, captures their selfies and provides them to the server for tests like liveness check, ID Verification, etc.
Benefits of Video Verification for the Banking Sector
Financial institutes like Banks have always been under the strict inspection of regulatory authorities. With strict AML & KYC regulations in place, customer verification during the onboarding process has become necessary for all financial institutes. Hence, digital onboarding has become the need of every bank as manual onboarding is not even an option anymore. Customer onboarding video is an effective and fast way of video verifications.
Remote Onboarding of Customers
Video-based verification has facilitated the online onboarding of the customers with the use of solutions like 3D depth perception, microexpression analysis and digitizing Officially Valid Documents (OVD), and geo-tagging. Geo-tagging is used to authenticate the location of the customers. The integration of AI with technology has enabled remote customers to benefit from the service.
Video Verifications is considered one of the safest verification methods for online identity verification. Some countries, like Germany, accept Video Verifications for the business operations of financial institutes. Some of the other European countries and India are also following the trend.
With the use of video-oriented verification, the end users can now conveniently complete the process of verification from their homes. Instead of visiting the branch to open their account or apply for a loan, they can easily complete the KYC process online and enjoy banking benefits. With the right KYC vendors, the banks can provide the facility of video KYC at the lowest internet bandwidth.
Comparison Between Old KYC Procedure and Latest Video Verification Approach
Compared to the traditional KYC, the video authentication process can be completed within minutes. This helps speed up the onboarding process which in turn improves the customer experience as the customers will not have to wait in long queues just for the verifications process. The latest video verifications due to its advanced features, audial-visual interactions and face matching capabilities helps prevent errors caused by traditional KYC procedures. Hence, the Latest Video Verifications approach is way more accurate, secure and convenient than the old KYC procedure.
Finally, in today’s world, businesses around the world are adopting video-based verification systems. In order to be competitive in the market, businesses and financial institutions have to adopt new technological advancements. These digital solutions help increase customer satisfaction and make the processes easier and faster. By using KYC solutions, businesses can get to know their customers better and get key information. Hence, it can be said that Online KYC or Video Verifications is indeed the future of Banking.