Video KYC (Know Your Customer) in simple is an authentication process conducted to identify a new customer or client using a video platform. The customer is then required to digitally submit the identity documents for proof via video call. The video captures the details using an encrypted audiovisual encounter that comes from the requesting entity’s domain, such as a bank-issued mobile app, notes first post. KYC is yet another technology that has seen an evolution with the advancements in the IT industry. Traditionally KYC was a lengthy process as it took weeks to complete since it was all done manually. Traditional KYC led to many drawbacks such as human error, no proof of verification, etc.
But in the recent past, KYC has become more digitized and one of the notable upgrades is Video KYC. In a corporate world that has been affected by the pandemic, remote working has become common among many industries. Therefore, organizations have shifted online to attract more customers and reap the benefits. In a situation such as this video, KYC provides multiple benefits to a business.
In addition to these, video KYC allows businesses to engage with customers remotely. This is a more convenient process for the customer since they can engage in the process from the comfort of their homes. Apart from that, an organization using video KYC can save up to 40% on infrastructure and employee-related costs. A common question that can arise with this technology is “what about data risks?”. Video KYC collects sensitive information such as biometric authentication, company information, and personal details of customers. In an era where hacking and privacy breaches lead to massive controversies, data protection is a necessity in video KYC. The use of age risk mapping can be one of the solutions for data risks. Apart from that, false-positive screening with machine learning can also be adopted. For further security, robotics can be applied here to process huge volumes of data, which can also be used for information protection.
With customers moving towards online platforms, businesses are looking towards online solutions to cater to the demand of their users. Some of the industries have already started incorporating this technology. One of them is the banking and financial institutions. The banking industry can use this technology for customer verification purposes. Payment industries and insurance providers have also switched to this technology in the recent past. More recently remote companies have utilized video KYC to avoid ghost employee frauds and other cybersecurity threats.