The Video KYC authentication procedure is a digital method of identity verification that is performed in in-person sessions through the lead of a professional KYC staff member. When the video call is going on, the client is asked to show their documents s solid evidence for completing the certification process. Customers are shifting to online platforms so big corporations have big challenges. For example, how to maintain the balance between official security procedures and a positive client experience. The businesses should also keep in mind that whatever methods they employ should be within the bounds of KYC/ AML compliance.
Video Verification KYC in India – How is it Applied?
In the year 2020, the RBI introduced some guidelines for executing customer Identity certifications through a video channel. The pandemic also pushed the authorities to take such steps to stay in compliance with the social distancing measures and to reduce the proliferation of the virus. The changes in the KYC regulations enabled the banking sector to take advantage of advanced technology and maintain a positive relationship with the customers. The SEBI institution in April 2020 permitted the investors to execute the online video KYC solution through the individual session method. The authentication process makes sure that the submitted records are thoroughly checked in the in-person session.
- The video-based authentication process should be carried out by registered institutes after obtaining the consent of the clients
- There should be no distractions in the interviewing room and the customer should be completely visible on the webcam (i.e. no blurring)
- The interviewing process should have random (extra) questions along with specific questions. It is to ensure that a genuine client has made contact (the liveness detection feature applied)
- The end-user should have their digital signature, the KYC paperwork, and officially required valid documents with them. The verification for them can be done through an OTP code
- Testing should be carried out in a friendly manner and the expert should make sure that the photo provided by the client matches with the customer sitting before them
- When the whole interview is complete, it should be securely saved in the data with accurate markings of date and time.
What is Going in Spain Regarding Video Identification KYC?
The financial authorities in Spain demand that banks employ digital conferences after performing identity authentications on their staff members. As per the regulations, the banking sector in Spain is required to use video KYC solutions while onboarding the clients in their system.
Video Verification- the Situation in Germany
In Germany, the KYC video solution was adopted in 2017. The authorities made it compulsory for the banking sector in order to tackle the issue of money laundering. For this, the staff members were trained to execute the video-based KYC process. The authentications done through videos make sure that financial institutions are in compliance with the AML policies. Document verification service is also used for this purpose.
How Can Different Industries Use Video KYC to their Advantage?
Video Verification in the Payment Sector
The payment sector is collaborating with other corporate members to make sure that the correct customer due diligence process is carried out to efficiently prevent payment scams. These days it has become important to reduce money laundering attempts. The introduction of AMLD5 made sure that all businesses apply the KYC process. The minimum amount for the pre-paid cards has been reduced. In this way, the payment sector can make sure that scammers stay away because of the implementation of a video authentication system.
The Application in the Property Management Sector
The increase in the incidences of crime rates and the requirement for strict KYC and AML systems have pushed authorities to deter fraud. In the real estate sector, the video KYC helps the owners to detect a fraudster quickly through the use of AML guidelines. The association between clients and brokers through the validation mechanism provides an immediate KYC solution.
How Are Remote Businesses Using the Latest Video KYC Verification?
During the COVID-19 pandemic, the trend of remote jobs increased resulting in fake employee scams. The cyberbullies took advantage of the scenario and got access to sensitive information from the companies. The usage of a video KYC solution ensures that only genuine candidates get the hiring opportunity. Furthermore, the ID authentication gave access to specific employees to the company’s sensitive data.
All around the world, companies have started adopting video KYC. The advanced solution has the potential to streamline the customer onboarding process. As the solution is fast and accurate, the users experience high productivity and efficiency. The aforementioned characteristics of the software make sure that the client incorporation process is carried out smoothly and there are no hitches. Furthermore, the companies can choose different options depending upon their needs and financial capacity.