Video-based KYC (Know Your Customer) is making its way as an effective verification process for banks and financial institutions. The RBI introduced this video KYC verification process with specific guidelines and norms. Banks can now leverage the video-based customer identification process (V-CIP). They can verify customer identity via the biometric data captured through videos instead of making customers physically travel to the banks for opening accounts etc.
What is Video KYC?
Video KYC verification is an automated, video-based customer due diligence procedure that involves digital KYC verification to onboard customers. Video KYC enables banks to use digital ID validation, face-to-face interaction, and document image capture with trained staff to quickly digitise the KYC process.
Video KYC has been mandated by many financial institutions and is welcome due to its convenience and speed. The representative will ask for the customer’s original documents to verify his identity during the video call. This footage will then be uploaded for final verification by the higher authorities. Several e-wallet and finance companies have begun to provide infrastructure to facilitate this new KYC system.
Steps in Video KYC
The main steps to perform a video-based KYC are:
- Customers must first register on the mobile app or website of the bank.
- An authorised official then begins the video KYC process by asking the customer to join a video call.
- The official then verifies and authenticates the customer’s Aadhaar card online.
- The customer is then asked to show a PAN card as well. The official matches the customer image in the PAN card with that on video using facial matching capabilities.
- Once the official confirms the customer’s location and address verification India, whether it is a live interaction, the session concludes.
- Finally, the staff stores and records videos for future reference.
Benefits of Video KYC
Video-KYC is a cost-effective option for financial institutions as they need not maintain physical KYC counters. Additionally, through video KYC, customers can get instant approval.
Video KYC verification can significantly simplify the KYC process for all financial houses. Customers no longer need to fill out forms, submit photos or scan documents as they can submit their ID proof via video. This proves to be very convenient for customers and staff alike.
RBI has mandated KYC regulations to ensure that a financial institution handles money of only verified individuals. Although this is a tedious task, video KYC can quickly accomplish it. A lot of time is saved on manual paperwork that may be especially helpful for people on the move or for staff who need to handle multiple clients a day.
Video KYC can be combined with modern, futuristic technologies such as Artificial Intelligence and Machine Learning. These innovative technologies have transformed the customer experience in banks. Video KYC verification supported by digital tools are dynamic, futuristic, and aligned with industry trends and competition.
The entire process in video KYC can be done remotely from the comfort of your home. All you need is a laptop or mobile device with a working internet connection. Through video KYC, customers worldwide can be onboarded without waiting in queues and doing a pile of paperwork.
Video KYC assures 100% security of customer information due to end-to-end encrypted data. This minimises the risk of identity theft, fraud, or submission of fake documents. All the information related to customers will be stored safely in an online digital system.
Key Features of Video KYC
Some salient features of video KYC are:
- Real-time PAN verification to track customer identity, track inflow and outflow of cash.
- Match face on ID with the video KYC to prevent identity theft.
- Use video forensics to reduce the chances of pre-recorded video and malicious practices.
- Address verification India with geo-tagging feature to find out the customer’s exact location.
Video KYC verification systems need not be used only for customers but can be used for employee identity management. Companies can add additional layers of security to video KYC software to enhance its reliability. Video KYC can considerably increase customer satisfaction due to its speed and instant verification. Financial institutions that adopt video KYC verification can relatively earn a higher ROI in a shorter time.