Industries that Need Video KYC and Why

KYC

For many people, life became easier due to work from home opportunities. On the contrary, several individuals faced problems in the digital world. Globalization has made the world a global village and it is not a surprise that fraudsters are rapidly increasing in this digital village we live in. with the introduction of artificial intelligence, machine learning, and deep learning, not only companies are enjoying tremendous benefits, but fraudsters have also gained access to sophisticated techniques. Fulfilling their malicious plans is not a problem anymore. So combating crimes, especially online crimes, has become easier thanks to knowing your customer verification. Unfortunately, criminals have found ways to break through KYC verification as well. Nevertheless, the verification market has introduced a video verification method to eliminate any chances of criminal onboarding.

What is Video KYC and How Does it Work?

Video KYC is becoming the new normal for verifying customers during the onboarding process. What is video verification? Well, a video KYC process requires simple verification steps for verifying customers on a live video call. These are the simple steps for video identification:

  1. First, you have to register on the platform and fill a form with essential details.
  2. Once done, a link for the video call will be shared with you.
  3. During the live video call, the KYC expert of the organization will ask a few questions and verify the information you provided in the form.
  4. Next, so you have to show a government-issued identity card or any other official document as proof of your identity.
  5. The expert may also check your body language and authenticate your face with the image on the documents for verification.

The process is complete and you are successfully onboarded. You may have to go through the process again verification declines.

Industries that Need Video KYC

Every industry needs a video to know your customer verification. However, the below-listed sectors need it the most.

Freelancing Platforms

People are now switching to work from home and freelance opportunities. Therefore it creates the possibility of earning a good income and enjoying the comfort of your home. However, criminals use fake profiles, forged identities, so fake job posts, and third-party money transfers for their illegal activities. Video KYC can eliminate the chances of fraudsters paving their way through freelancing platforms.

Insurance Sector

The Indian government has already allowed the insurance companies to use video identification methods for seamless customer onboarding. Furthermore, these firms can verify customers in minutes before sharing insurance policies. Otherwise, the insurance sector will continue to face losses for sharing sensitive policies with fraudsters. 

Finance Sector

The finance industry works like a goldmine for fraudsters because they can illegally access accounts for stealing funds or money laundering is getting easier through third-party money transfers. Therefore if banks and other financial institutions use video verification solution for all the customers, so filtering criminals would not be a problem. Preventing identity theft, money laundering, terrorist financing, account takeover fraud, and chargeback scams will get easier.

Conclusion

The world is rapidly digitizing and so are fraudsters. They are coming up with remarkable techniques to fulfill their desires and artificial intelligence has made it more convenient for them. Hence, a robust identity verification solution is necessary and video KYC is one of the latest and ideal solutions for the purpose. So the KYC experts can verify customers on a live video call without physical interaction. It saves time as well as the hassle of verifying every customer. Industries like e-commerce, online businesses, freelance, hence finance, and the insurance sector must add video verification solution for legitimate and swift customer onboarding.

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