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VideoKYC(VKYC): Primary Key to a Quick, Smooth, and Safe Account Opening

VKYC

Digital revolution during the 1990s and 2000’s evaluated the usage of internet services in every sphere of life. Banking sector also developed online portals and started online banking.This enabled consumers to check their accounts balance, transfer and pay money remotely without  visiting branches physically. Digital banking became increasingly popular in the recent years and is delivering financial services through mobile phones, internet, and Automated teller machines (ATM). Digital banking has brought the most convenient way for account opening to the customers in the form of video KYC(vKYC).

Video KYC: A Quick Review

The other names used for Video KYC are video identification or video-based customer identification process,or video interview KYC. This is a face to face identification method that  can be used in both ways physically or remotely. Video KYC online is administered by a KYC agent. Customers do not need to visit physically and can open a savings account remotely from the comfort of their home. The whole process is completely automated, simple, fast, and safe. The KYC agent directs the user for the submission of identity documents and answering some questions on a video call.

Video KYC Process

A KYC process that leverages video in any capacity, is called a video KYC Process. It is a video based digital KYC to verify the customer’s identification during onboarding. It is a video based  customer service due diligence program. This completely automated process is entirely contactless and opens an account within a few minutes. The customers are required to keep a blank paper, pen, and their original identity card with them before starting a video call. Following are the steps involved in the vKYC process.

  1. Once the video call is started, the KYC agent asks the customer  to show his identity cards in the camera.
  2. The KYC agent then asks the customer to sign on the paper and show it to the camera. The sign should match with the one in the identity card.

The vKYC process is completed within 5 minutes and after reviewing the whole process, approval may be granted within 24-48 hours.

Video KYC Regulations

As per Government regulations, vKYC has to be performed under the following regulatory guidelines:

  1. A clear image of the customer should be captured during the video call.
  2. A clear image of the customer’s identity card should be captured during the video call.
  3. Identity card verification should be done by cross-checking details with the database.
  4. Geo tagging should be done to confirm the location of the customer.
  5. Matching of customer’s image with his identity card photograph to avoid identity theft.
  6. Matching of the details on the form with that of the identity card to avoid scams.
  7. Liveness checking of the customer.
  8. Video is required to save with date and time.

Video KYC Solution

person hands holds the tab

KYC is a mandatory process for banks and other financial institutions to comply with the anti money laundering( AML) and counter-terrorism financing(CTF) regulations. Video KYC solution is a system that provides all the services that are required to fulfill the video verification regulations . Video verification uses the latest technologies like artificial intelligence (AI) and machine learning (ML) for the verification of identity documents, address and location, face recognition and liveness checking. It accelerates a smooth and secure  customer onboarding and mitigates the risk of fraudulent transactions.

Why is vKYC Essential for an Online Account Opening ?

Following are the main reasons that make vKYC essential for opening a savings account remotely.

  • Global Access: Banks and financial institutions can increase their reach by accessing their global customers remotely.
  • Cost Saving: As the whole process is paperless and without logistics, it’s highly cost-effective.
  • Fully Compliant:  As it is the only identification method which is equivalent to in person authentication it provides full compliance to the mandatory regulations.
  • Time Efficiency: In contrast to traditional KYC methods vKYC is less time consuming and is completed within minutes.
  • Customer convenience: Customers can conveniently select time and location for vKYC.
  • Safety and Security: It detects and prevents frauds, and illegal activities that may cause credibility and Economic damages to the organization.
  • Better Customer Experience: A simple and easy onboarding process from the ease of their homes enhances customer satisfaction.

Summing Up

Video KYC (vKYC) has brought a revolutionary change in digital banking by making the customer onboarding process easier, faster, and smooth. Another feature that provides it edge over the other identification methods is use of AI and ML for the verification and validation processes. It not only provides secure business to the organizations but also  assures regulatory compliance. vKYC enhances user experience by building their trust and confidence. It is a primary key for the banks and financial institutions to streamline their operations and safeguard them against fraud and criminal actions.

VideoKYC(VKYC): Primary Key to a Quick, Smooth, and Safe Account Opening

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