Video KYC Process: Helping the FinTech Industry in Fighting ID Fraud

The technological revolution has influenced the fintech industry worldwide because of innovation in payment transaction systems and digital asset monitoring. Online sites have connected clients to the fintech industry. Digital systems have facilitated the progress of companies, but there are loopholes that cybercriminals can use to take advantage of poor security protocols. The video KYC process is a progressive approach for fintech organizations. 3D liveness detection and micro-expression analysis deter hackers. 

Video KYC Process – A Quick Insight into the Solution

The video based KYC authentication software validates the credentials of clients and their given documents. The latest digital solution uses an anti-spoofing feature to evaluate the live presence of the consumer and discourage cyberheists. The latest approach guarantees better security because of AI/ML software integration.  

Best Four Video KYC Process Models

• Hiring a local KYC Expert
• Using Private KYC Team
• Recruiting an International KYC Professional
• Benefiting from an AI-Based Video Session

Perks & Benefits of Video KYC Process

The advanced KYC procedure involves an expert to guide customers through the verification procedure. The KYC authority ensures that the given records are original and that client’s identity is genuine. The Video KYC process is a powerful security solution that conveniently ensures compliance with AML/KYC regulations to secure fintech companies from financial repercussions.

Ensuring a Deep Connection with Clients

The latest video KYC process ensures customer satisfaction around the clock. The KYC authority guides the client to submit their government-supported documents. The KYC expert also asks questions to ensure the authenticity of the client’s ID. The phase guarantees customers receive services from fintech industries. During the interview, the professional decodes the consumers’ body language to catch signs of deceit. Therefore, the integration of AI & ML software boosts the quality of the video KYC process. 

Increasing the Effectiveness of Video KYC Process

There are various similitudes between the bookkeeping services and video KYC authentication service that enables only real customers to acquire benefits from the fintech business. If there is any suspicious activity, the video KYC check systems stop the procedure immediately and notify the staff members to take appropriate action. 

Protecting the Digital Sites

Technological innovation has equipped hackers with various techniques to bypass the security protocols of fintech industries and complete their malicious goals. Criminals can steal the ID credentials of anyone, living or dead, to acquire their insurance funds. They can use the dark web to sell information. The Video KYC process discourages ID fraud effectively because of advanced facial verification.  

The global regulatory agencies have declared that financial institutions and crypto industries must verify the IDs of their clients during the onboarding process, guaranteeing compliance with KYC standards. As per the latest regulations, all fintech businesses must increase transparency during client enrollment. A powerful video KYC process can help accomplish set goals. Consequently, the application of a video-based KYC solution deters not only money laundering but also ID fraud. 

Several advantages of the video KYC process are below:

• The whole procedure is time-saving and resourceful because of AI & ML software integration. In this regard, fashion of photography the video KYC solution guarantees not only the quality of output but also a reduction in ID scams

• The video KYC system strengthens security measures because of real-time data extraction and robust security protocols. Thousands of Artificial Neural Networks (ANNs) support the KYC system

• The Video KYC process ensures compliance with KYC/AML regulations which are extremely important for minimizing identity fraud across the world. Global regulatory agencies force fintech companies to combat money laundering and terrorism financing incidences actively. Sometimes, some companies perceive KYC/AML regulations non-seriously. Consequently, they face hefty monetary fines/ long-lasting bans

• Whether it’s remote employee onboarding or client age authentication, the video-based digital solution facilitates in every way. Fintech industries can benefit from the service, but the solution can also facilitate insurance companies and the payment industry

Summing Up

The application of the video KYC process in fintech companies has guaranteed a streamlined customer experience. In this regard, there is a severe need to opt for advanced digital solutions to secure a competitive edge in the market. The outdated methods had several shortcomings, were slow, and were susceptible to errors. Video KYC process also integrates well with already-existing technologies in the fintech organization. The latest process comprises a short interview session with a KYC professional who must verify the documents. Therefore, a video-based KYC system supports fintech organizations in combating ID fraud.