In the current society that is fast growing, organizations are embracing digital innovations. One innovative solution is Video KYC (Know Your Customer) Verification. It has revolutionized the identification process. This can help companies confirm consumers’ identities without face-to-face contact. It eliminates the tedious, time-consuming process of identity verification. With the rise of online services, especially in banking and telecom, it’s vital to verify customers’ identities. However, video KYC will be the real game-changer in this regard.
This blog will teach you about Video KYC verification. You’ll learn the process, its benefits, and why companies like Pixl are adopting it.
What is Video KYC Verification?
KYC stands for Know Your Customer. It is a process used by companies, especially banks, to verify customers’ identities. It originally referred to direct contact with customers. They used to present their documents in person. But, with Video KYC the whole process has gone online.
Video KYC verification lets customers identify themselves via a video call with authorized KYC staff. During the call, we cross-check the customer’s documents. At the same time, we compare their facial features with their submitted ID proofs in real-time. This process lets a business easily take on customers. The client does not need to visit the business.
How Does Video KYC Work?
Video KYC is thus a very simple, effective process. Here’s a breakdown of how it typically works:
Customer Initiates KYC Process: A customer gets into the app or website of a business and chooses the Video KYC verification. They are then linked with an authorized KYC agent through video conferencing.
Document Submission: The customer provides any ID proof such as an Aadhaar card, PAN card, or passport during the video call. The KYC agent scans the documents, and through the camera, he or she ensures that the documents are genuine.
Face Verification: The customer’s face is then matched to the photo on ID proof submitted by them through an AI facial recognition process. This step helps verify that the person on the video call is indeed the person who is in the documents.
Liveness Check: This checks the recording’s liveness. It prevents manipulation using videos or photos. The agent may ask the customer to blink, smile, or move their head. This is to confirm they are present on the live call.
Final Approval: The KYC agent confirms the identity and documents. Then, they activate the verification, completing the client’s registration.
The whole procedure takes a few minutes. Basic KYC might take days or weeks.
Benefits of Video KYC Verification
Video KYC verification has benefits for both businesses and customers. So, it is the preferred choice for identity verification.
1. Time-Saving
The first benefit of Video KYC is that the process is significantly faster than traditional KYC. It can be done in minutes. This saves customers time. They won’t need to visit stores or wait for manual approval. This fast turnaround is vital for banking and finance. Rapid onboarding ensures they can provide services.
2. Convenience for Customers
Consumers prefer an online process because they do not have to go physically to the originating company to verify their accounts. The people do not need to make appointments or even visit branches of banks. These conveniences enhance customer satisfaction hence making businesses more attractive.
3. Cost-Effective
Video KYC has very low costs for businesses. It also does not require setting up infrastructure, preparing documents, or hiring people for verifications. So, they will only need to spend money and time in the early stages of adopting activities that will be automated with AI.
4. Enhanced Security
Another important factor to note is that video KYC is very secure. Tech like facial recognition and document checks cuts fraud. And last, all the KYC processes are recorded on video and can be reviewed in case of any issues in the future.
5. Regulatory Compliance
In many countries, including India, Video KYC is now valid for customer ID. Institutions like the Reserve Bank of India (RBI) have recognized it. This makes sure that companies stick to the current laws and regulations of a given country while at the same time employing a relevant and effective method.
6. Scalability
Video KYC also has the advantage of being able to process large volumes of customer verifications at the same time. It is especially useful for businesses that attract many customers quickly. For example, during a new product launch or a promotional campaign.
Use Cases for Video KYC Verification
Video KYC can be applied in multiple ways across industries and sectors. Here are some key sectors where it is making a significant impact:
1. Banking and Financial Services
Video KYC is implemented extensively in banks and financial institutions. It helps them verify customers’ identities. So, they can open accounts, offer loans, or issue credit cards without a branch visit. Since the finance industry usually has strict regulatory measures such as KYC, Video KYC proves beneficial since it allows organizations to adhere to these rules without compromising on the experience of the customers.
2. Telecom
Telecom firms use video KYC to identify clients when issuing SIM cards or services. It also enables customers to receive their services at a faster pace with little or no required visits to the store or paperwork.
3. Insurance
Insurance companies employ Video KYC to onboard customers who intend to take out an insurance policy. In the case of a life policy, health policy, or general insurance policy, Video KYC enables the customers to get their policies through quickly without further unnecessary checks.
4. E-commerce and Online Services
Video KYC is beneficial for e-commerce platforms and other services that need the identification of their customers. It is crucial in the cases of the platforms working with financial transactions, thus confirming the identity of the customer beforehand and providing services.
Why Choose Pixl for Video KYC Verification?
Pixl provides a modern Video KYC verification solution that is based on using artificial intelligence and machine learning to create a fast and secure customer identification process. Here’s why businesses should choose Pixl for their Video KYC needs:
AI-Powered Technology: The key features in this case include real-time document verification, facial recognition, and liveness check and all these are done through AI to ensure efficiency and effectiveness in the verification process.
User-Friendly Interface: Pixl’s solution is simple and thus their customers do not have to struggle to undergo any technical processes in the KYC process.
Compliance: Pixl’s Video KYC solution is with the current regulatory legislation to make sure that the business reaches a specific legal requirement while using an enhanced verification process.
Scalability: This means that regardless of whether you conduct hundreds or thousands of KYC verifications daily, Pixl’s Video KYC solution can be easily, and seamlessly, integrated into your business.
Security: Pixl guarantees customers’ data security as it uses end-to-end encryption and stores all information in secure cloud hosting environments.
The Future of Video KYC Verification
With more firms adopting digital processes in their operations, the use of Video KYC verification is likely to increase. It is no more an option but a necessity, particularly for organizations that require effective, secure, and inexpensive identification solutions. As the technology in the field of AI and machine learning progresses, we will experience even faster methods of Video KYC, increased accuracy, and additional levels of security.
Furthermore, as governments and regulatory bodies in different parts of the globe come to accept Video KYC, more sectors are likely to follow this innovation as the norm for customer identification.
Conclusion
Traditional methods of customer identification have become obsolete due to the emergence of Video KYC verification. This has several advantages such as convenience, quickness, safety, and cost-efficiency. For organizations aiming to be a step ahead of competitors, having a dependable Video KYC solution is crucial.
Pixl’s Video KYC solution is both advanced and user-friendly. So, it’s ideal for any company. Pixel helps companies provide their customers with a fast, safe, and excellent onboarding process. Choose Pixl’s video KYC solution and simplify your verification process today.
