The social distance became important during the coronavirus pandemic, more firms have begun onboarding customers and completing customer verifications through digital techniques. With the development of the video-based authentication solution, the push toward digitization is expected to continue in the financial industry. Companies in the banking sector are providing their customers with creative new digital products. New technology always comes up with more challenges. With the introduction of these digital products, the number of scammers has increased. They used stolen identities to commit a financial crime. So, there is a need for a strong system to stop these fraudsters. Combining the technologies with an enhanced authentication mechanism can efficiently handle the demand for online ID validation. Online video identification is a perfect example of a modern method of identity verification.
6 Advantages of an Online Video Identification System
The world has become a global village. Anyone can talk, video chat, or even do business with different people from any location in the world. Different companies from all over the world can hire employees from anywhere. With this advent in technology, it is necessary for every firm to know about its customers. Online video identification is one of the best methods to verify a customer’s identity remotely. The following are several benefits to employing video-based customer identification solutions for businesses:
Effective Fraud Prevention
Real-time fraud prevention is one of the most important benefits of video verification of identity. Using live human intelligence, AI, and face recognition methods, businesses can substantially reduce the number of identity theft incidents while also increasing the security of their operations.
Avoid Money Laundering
Obtaining a trustworthy client will protect the organization against money-launderers. To ensure that people are not on any watch or sanction lists, one can extensively check their customers’ backgrounds by utilizing online video identification. This implies that video verification is a significant technique in combating money laundering.
Businesses can now say goodbye to extensive paperwork and time-consuming manual data input. The entire video customer identification process could be completed online in real-time.
Get Rid of Human Errors
Cutting-edge technologies that utilize artificial intelligence, such as liveness detection, dramatically reduce the risk of human mistakes. Drop-off ReductionVideo-chat verification helps to reduce drop-off rates by providing a fast and simple customer verification procedure that differs from the usual authentication approaches they often have to utilize.
Improved Customer Service
One of the major issues like drop-offs is avoided through video calls. A long onboarding approach can upset new customers, causing them to abandon the process. These issues highlight the critical need for quick online video identification procedures. The identification process is done by presenting their official papers to the camera and replying to a few essential questions from the video-based KYC software provider. The data will be verified after it has been gathered.
Faster Identity Verification
Video identification technologies have mostly replaced in-person client visits for authetication. As a result, remote verification allows the operation to be completed more rapidly and without interruption.
Checklist for Better Online Video Identity Verification
How can organizations ensure that the video authentication system they use is the best? Before utilizing the application, it is critical to do an extensive study on its features and capabilities. Only then a corporation can be certain that the method it has selected is beneficial to the organization. The best e-KYC video verification should follow the guidelines listed below.
- Customers could potentially come from anywhere in the country because of digitalization. It is critical to choose a system that provides suitable language and documentation support, as well as global coverage.
- An effective video identification solution allows businesses to reduce their KYC operating expenses while maintaining customer happiness. The best answer is to provide any business with the opportunity to “pay as you go.”
- It’s true that every business uses a unique set of KPIs and operational procedures. Not every organization will require every feature that an online video identification system provides. The best service provider is the one that comes up with a solution that is suited to the demands of the firm.
- The online video identification procedure involves the processing of sensitive customer data, which must be secured in compliance with worldwide data management norms. Businesses want a service provider that provides robust encryption solutions to prevent data theft and protect client privacy.
- Customer satisfaction is the most important factor driving the company’s growth. An online video identification system that provides multichannel consumer interaction and confirmation leads to a better customer experience since the user does not have to switch channels to complete the verification.
Every financial and banking firm must do identification authentication when onboarding customers. These organizations must use technologically advanced verification procedures to counteract the increased danger of financial fraud. These crimes have exploded due to the introduction of new online services offered to customers. In this case, a strong online video identification system can help them keep their company safe while also making their customers satisfied. The video verification solution improves security while also providing an expedient verification process that is appropriate for their onboarding requirements. It is essential for service providers to fully comply with video KYC regulations. So that, financial fraud could be stopped before damaging any business.