Video KYC – Revolutionizing the Practices of the FinTech Industry

Identification processes and software have taken new forms with interesting features being introduced. Video KYC is one of those innovations brought to light in recent years by competitive identity verification solution providers. Video identity verification has proved to be a remarkable addition to the authentication services offered so far. It is the most updated version of verification that has benefitted a number of industries to date. The reason behind the huge success of this service which has made it preferable widely. There are numerous attributes that support this sophisticated technology.

Benefits of Video Identity Verification to the Fintech Industry

Many industries take advantage of this new verification technology as it digitizes the whole process of identification from top to bottom. But, the critical success factors of any newly introduced technology are crucial to the degree of need that is demonstrated by industries. 

Going with that, it is found that the Video KYC services are mostly applied by the financial institutions and banks because of the increased number of security checks that are required in that sector. It is due to the sensitivity of business operations in banks involving transactions in cash or on credit. Both require strict security checks before completing the process. Thus, verification services integrated with digitization are the most effective in performance when adopted by financial institutions.  

Saves Monetary and Time Cost  

Video KYC is steady and swift in working which makes it more of a time saver and also it is a cost-efficient technology that saves the banking industry from huge expenditures of operational costs that may occur otherwise in the manual verification process. Thus, video ID verification is a useful tool for banks and financial institutes to combat the high costs that disturb the overall operational efficacy. 

Video KYC has helped to eliminate the unnecessarily consumed time where clients needed to be dealt with extra patience with unwanted exhaustion of long working hours being served for the manual slow processes to take place effectively. Video KYC has taken away all these unpleasant elements that hindered the bank’s performance resultantly.

Strengthened Digital Security

Financial technologies like improvised KYC solutions have helped the banks to ensure unbeatable digital security. This is what makes video KYC different from other verification methods used across various other industries. Video ID verification demands the live presence of the client being under consideration for verification purposes. This live presence can not be manipulated because the IDV system is supported by artificial intelligence. It involves machine learning and deep learning. 

Machine learning decodes the postures and body language of an entity into a machine-readable format. Later, with the integration of deep learning, the AI-supported software is enabled to read human structures having a diversity of features like skin texture, uniqueness of retina and iris, face patterns, etc. it is the excellence of artificial intelligence. It makes the IDV software competent enough to detect different faces with concrete accuracy. This is also one of the spectacular features. They have increased the usage of video ID verification services across the globe.   

Helps to Meet KYC Guidelines

The act of adopting video-based identity verification assists financial institutions. It helps how to comply with the guidelines of the legal authentication authorities. Now the question arises that how is that possible? It is possible because whenever a business entity or a financial institution incorporates identity verification software. It is mandatory for them to study the restrictions and requirements that are mandatory to be followed to incorporate the digital technologies ethically. For instance, a business entity is required to keep under strict consideration that it in no case violates the privacy of an entity. In the same way, a bank has to abide by the strict rules as well so that it does not wrongly show leniency to any entity and overlook essential details. 

Video KYC is Fast and Smooth 

As it is quite clear that the video identity verification process does not demand a client to be present in the bank for authentication. Instead, the whole process could be performed on a video call. The KYC agent is already present to assist in case of any confusion or difficulty. Thus, it is all smooth and quicker than the conventional practice of verification.

Final Thoughts

Digital technology has overtaken the world from up to down. Every activity has turned into a digital form which has improved the efficiency of business processes. The saved time is fruitfully invested in other innovative ideas. Video-based identity verification has revolutionized the financial industry. Because it has played a key role in breaking the stereotypical misconception. The financial sector has no room for innovation due to its dry nature of business and monotonous processes. They are being performed on a daily basis.  Video ID verification has also facilitated the banks in keeping their standard of service high in the ‘New Normal’ as well.