The pandemic came as an unforeseen crisis in 2020 and severely disrupted the industries across the country. However, things were different for the finance and banking industry because going down under pressure was not an option. Thus, they turned to VCIP solutions for digital customer onboarding. After all, going for online verification of documents like PAN card, Aadhaar card, and the likes through video KYC solutions was the only way ahead.
But what exactly is the Video KYC process, and how does it aid in customer onboarding? Is it something that people need to start considering, too? Here are all the answers today!
What Exactly Is The Video KYC Process?
Video KYC is the procedure of carrying out the KYC onboarding operations through video conferencing technology, i.e., over video calls. People can complete this process from anywhere, and all they would need is a working laptop and or a phone with good connectivity and a video camera. The companies are now going for video KYC solution providers to make the KYC verification and identification process easily accessible. Especially for financial institutions like banks, the video KYC process has eased out the complicated operations.
Video KYC Process for Digital Customer Onboarding
Customer onboarding is the procedure used by financial institutions to onboard a customer, i.e., take responsibility for their financial and legal track records. As such, identity verification of customers, validating their documents, and running background verification forms a crucial part of customer onboarding. The institution runs a thorough background AML check to make sure that the person isn’t involved in any money laundering or terrorist activities.
People already know about the impact of artificial intelligence across industries, and video KYC is one of the aspects that is heavily dependent on this advanced tech. The process involves the use of artificial intelligence to perform assessments like blink tests for checking the liveness. Artificial intelligence algorithms aid identifying the cases of identity theft that occur most commonly in the case of Aadhaar cards.
Reasons for Financial Institutions to Adopt Video KYC Verification
In modern times, digitization has turned into a necessity rather than a luxury. With organizations swiftly embracing ways to make digital transformation easier, people can be assured that video KYC is here to stay and grow. After all, a completely digitized system means a seamless and enhanced digital customer onboarding process. Furthermore, VCIP and background verification solutions offered by the institutions add to an upgraded customer experience.
It’s a win-win situation for both parties because the customers don’t need to wait in line to complete their KYC. The companies get to catch financial and identity frauds before onboarding customers.
For the financial institutions, there is the added benefit of saving operational costs by at least 70 per cent and bringing down KYC turnaround time by 90 per cent. Though banks, insurance companies, mutual funds, and NBFCs are the main users of video KYC, the P2P marketplaces, mobile wallets, telecom companies, and logistics businesses are also joining the bandwagon.
Video KYC promises the next stage of convenience for both companies and their customers. And its adoption is only going to increase in the times to come. If the populace is also planning to adopt this new-age technology, here is the perfect solution for them.
AUTH Bridge, with its ability to add security, scale, and speed to the customer onboarding process. It is just what the company needs to introduce video KYC for their customers. So, go ahead and make the shift without further delay.