The following article looks closely at the significance of video KYC solutions and how businesses can implement the procedure.
Video KYC Solutions: Gaining Insight
Video-based authentication is an online ID verification approach. The cutting-edge approach performs customer validation through video call sessions with a KYC expert. During the session, the customer must show government-issued records as proof of identity.
According to ReportLinker research, the global video KYC market will grow to around 862.83 million dollars by 2030, showing a CAGR of 16.97% for the forecast period (2021 to 2030). The need for KYC is increasing with time because it lowers expenditures and time consumption during the ID authentication procedure. AI-driven features facilitate fraud prevention actively.
This way, business experts can focus on high-priority tasks and contribute to the growth of corporations. Finally, growing consumer demand to streamline the ID validation procedure is an important market driver behind the video-based KYC sector.
In the coming years, the video KYC market will experience massive growth because of a growing need to forgo manual procedures. This is important to enhance customer service quality and reduce expenditures. Moreover, the widespread use of financial technology services massively contributes to the growth of the concerned sector.
Regarding regional analysis, the global video market size is divided into five major reasons. This includes North & Latin America, Europe, Asia Pacific, Middle East and Africa. In 2020, the North American region was the major shareholder because of the presence of big BFSI companies.
Additionally, the mass adoption of technology and the availability of several vendors is massively contributing to the growth of the sector. Ongoing research in the AI & data security domain is further facilitating the development of video-based KYC in the BFSI sector. The APAC market will grow in the next five years for more financial inclusion in the countries mentioned above.
Complete Process of Video KYC Solutions in Banks
Video-based authentication procedure promotes face-to-face interaction for ID validation. Financial firms perform the procedure through video call sessions where the client connects with a KYC expert. Compared to standard KYC procedures, clients must authenticate their identity by showing government-issued records during a video meeting. During the session, the AI-driven system also performs liveness detection checks to confirm the live presence of the customer.
1. Consumer Registration on the Platform
Financial firms such as banks use know your customer measures to offer a positive onboarding experience. The first essential step for clients is registering on the platform and following the instructions.
2. Live Call from a Bank Representative for Banks
After account creation, the system schedules a session with an expert according to available time slots for concerned entities. Cutting-edge technology generates an automated confirmation link via SMS or email.
3. Interview Session for Liveness Detection
During the short meeting, a bank representative guides the client through the process. Often, this involves liveness checks via the execution of small actions such as lifting a finger.
4. Address Verification through Geo-Tagging
The bank representative also validates a customer’s address. It happens through geo-tagging in real time.
5. Cross-Matching of Records
In this phase, the specialist reviews user documents and cross-matches data with pre-existing information. Experts can ask the client to recite certain information on the account to determine authenticity.
6. Clients Receiving Final Results
After completing the process, the expert examines the application to review information thoroughly. The system rejects the request in case of incomplete or inaccurate information.
In case of correct data and genuine documents, an auditor checks the application one last time before processing it. Finally, the customer receives the verification results.
Ensuring Safety & Security with Video KYC Systems
Modern-day financial institutions must opt for the latest digital solutions to keep up with the latest market trends. Applying the video KYC services can help experts comply with the latest know your customer & anti-money laundering regulations.
To offer a positive experience to customers and keep businesses safe, all institutions must implement video KYC systems. This approach streamlines the ID validation process and effectively prevents fraud.
The Bottom Line:
The application of video KYC systems can modernise the onboarding experience for clients and ensure a positive customer experience. The innovative technology not only attracts genuine clients but also maintains market credibility of the users.
Experts can collaborate with a third-party vendor and implement a GDPR-compliant solution. This secures a strategic advantage for companies and strengthens customer relationships. Hence, the importance of applying video-based KYC systems becomes evident.
