Video KYC - A Real-time Solution for Real-time Problems

  • Victor Fredung, CEO at Shufti Pro

  • 05.11.2020 06:45 am
  • Video KYC

Video KYC is the process of video-based identification. You must be familiar with the term KYC- Know Your Customer, a procedure for businesses to verify the identity of the customers and to eradicate illegal activities like identity theft or money laundering. Video KYC is a similar process of verifying a customer’s identity but with a human KYC expert conducting an online verification interview.

Covid-19 pandemic has completely pushed the world towards digitization. The e-commerce market has seen more business than ever. Banking and financial institutions are in a rush to improve their online platforms. The world is more focused on digitizing that they have forgotten to consider the thieves and fraudsters, who have also moved online for their illegal ventures.  Hackers have become more sophisticated. They are now able to fool the conventional identity verification procedure to get past the system. This is where the need for more accurate identification solutions arises.

The KYC process can be a demanding task for businesses. Authenticating every customer and verifying their data can take hours. Managing the data manually is not only costly but it can also raise concerns of data security. Data security and identity theft have been a major threat to almost all industries. Video KYC is an answer to this plight. Combining both artificial intelligence and human intelligence, the video KYC solution is far more efficient and reduces the expense of onboarding customers.

A customer is connected with a KYC expert through a live video call. The KYC expert is trained to carry out the identification process and they guide the customer throughout. The customer is asked to present an identity document for evidence. A highly advanced service of video KYC integrated with artificial intelligence and OCR technology can be far more effective than manual KYC. The data from the identity documents can be captured in the live video call through OCR.

With the guidance of the KYC expert, the customer is asked some questions and to perform some minor facial movements. Then, the customer is required to show their ID document in the camera from all sides. Even the edges of the ID documents are checked to see if it is real and not a picture. The document authentication process is also carried out by the artificially intelligent software.

The data security of the customer is an utmost priority. The whole video identification process is recorded with the consent of the customer and secured in the back office once the procedure is complete.

Video KYC service can offer a liveness detection test which makes the whole process secure and no identity thief will be able to manipulate the system. AI-based liveness test that proves the physical presence of the customers. The KYC expert, trained to analyze the behavior of the customer can also catch deepfakes in action.  The video KYC solution is proving to be a fool-proof method of regulating with KYC compliance.

KYC compliances are global regulations that obligate all the organizations to carry out the procedure of identity verification on all their potential clients. If failed to do so, they can be fined heavily and face the risk of a bad reputation for their business. Video KYC solution helps these enterprises to seamlessly comply with KYC protocols and that too in a few minutes. The customer onboarding procedure has become hassle-free. The customer can get verified at the comfort of their homes. Especially in these grave times of Covid-19, video KYC can assist the organizations in complying with KYC regulations while maintaining the social distancing protocols.

Other Blogs