Video KYC (Know Your Customer) is a process of identity verification using video conferencing technology. It allows an organization to verify the identity of a customer remotely by conducting a live video call with the customer and comparing their government-issued ID with their physical appearance. The aim of video KYC is to streamline the customer onboarding process while maintaining the required levels of security and compliance.
Video KYC in Banking
In the banking sector, Video KYC is used as a way for banks to comply with regulatory requirements for customer identification and authentication. It allows customers to open bank accounts and complete other financial transactions remotely, without having to physically visit a bank branch. This can greatly improve customer experience and reduce the cost of customer onboarding for the bank. During a video KYC call, a customer provides their personal information, such as name and address, and demonstrates their identity through their government-issued ID and physical appearance. The bank then compares the information and verifies the customer’s identity. This helps to prevent fraudulent activities and ensure the bank is complying with anti-money laundering and know-your-customer regulations.
Video KYC in Business
Video KYC (Know Your Customer) is a process where businesses verify the identity of their customers using a video call. The customer provides their personal information and shows a government-issued ID to the video call agent who verifies the information and confirms the customer’s identity. This process helps businesses comply with anti-money laundering and anti-fraud regulations and also helps build trust with their customers.
Advantages of Video KYC
Video verification offers several advantages over traditional in-person verification processes. It provides a convenient and time-saving experience for customers, allowing them to complete the verification process from the comfort of their own homes. Additionally, the video kyc solution provides enhanced security through real-time identity verification, reducing the risk of fraud. It also increases accessibility for remote and underserved populations who may not have access to in-person verification services. In terms of cost, video verification is often more cost-effective than traditional in-person processes. Overall, video verification improves the customer experience by making the verification process more efficient, secure, and accessible.
Traditional vs Video KYC
KYC processes were laborious in the era before technology. The primary focus here was on financial institutions. For instance, when beginning a business relationship with a new client, banks required them to complete forms, scan identification documents, and wait for a response. Even while more and more institutions now employ digital customer verification services, some still undertake customer verification the old-fashioned (manual) method.
Compared to old methods, video verification is significantly safer and makes it simpler to spot any fraud. Customers can use the institutions’ services without physically visiting their locations by doing everything online from the comfort of their homes or place of employment. You can also save a lot of time by using video KYC, because the entire process simply takes a few minutes and can produce results almost immediately. Since video KYC is supplemented by automatic algorithms that frequently observe more than the human eye can, it is also far more accurate than manual KYC.
The video “Know Your Customers” is an effective approach to understanding and engaging with customers in a visual and personalized manner. By using video, businesses can gain insights into their customers’ needs, preferences, and behaviors, and create content that resonates with them. The use of video can also help build customer trust and loyalty, as well as provide an opportunity for two-way communication. Effective video content should be personalized, use storytelling, and include video analytics to measure impact and refine future content. However, it is important to consider data privacy and the ethical use of customer information when creating and utilizing video content for customer engagement.