Until a decade ago, financial institutions manually verified customer details to asses risks. This included verifying information such as customer identities and their financial activities. Also, the risks they posed to the organization. This was a tiring process. It required many days to be completed. As a result, customers were usually tired and frustrated with the process.
Today, the online Video KYC solution has changed how businesses verify customer’s identity. It’s seamless and faster and ensures that businesses are compliant. The adoption of such technology eliminates the need for redundant paperwork.
Let’s take a brief look at the history and the impact of video KYC on customer experience.
- Traditional KYC Challenges:
Before the advent of video KYC, customers had to visit a branch in person. Only then could businesses verify their identities. This process was time-consuming and cumbersome. It often led to delays in account opening or accessing services. It also limited businesses’ ability to serve customers remotely.
Paper-based processes and manual verifications also resulted in errors and delays. The costs associated with maintaining physical centers and hiring extra staff impacted profitability. These challenges created the need for more efficient and streamlined KYC solutions.
- The emergence of Video KYC:
Video KYC solutions are a superior digital alternative to traditional methods. They use technology like facial recognition and video calls to verify customer identities. The technology also facilities digital document submissions cutting out hours of paperwork. It speeds up the process by at least 6-7 days!
- Convenience and Accessibility:
Online Video KYC solution offers customers a convenient way to verify their identities. They can do it from anywhere and anytime. It removes the hassles of in-person visits. Customers can complete the process in the comfort of their smartphones or computers—no more long-distance travel, standing in long queues, or printing copies. Customers can complete their KYC within a few minutes and access the services they need.
- Time Efficiency:
Video KYC improves time efficiency by streamlining the identity verification process. Customers can complete the verification remotely using their devices. There is simply no need for in-person visits or lengthy paperwork. The real-time video call with KYC agents allows for the immediate resolution of queries. This time efficiency enhances convenience for customers. It allows them to access the products or services they require quickly.
- Remote Account Opening:
Video-based customer identification solutions empower businesses to onboard customers remotely. This means they can onboard customers located in different regions or countries effortlessly. As a result, businesses can expand their customer base without geographical limitations. And tap into new markets!
- Enhanced Security and Accuracy:
Video KYC enhances security and accuracy through advanced technologies. Facial recognition and document scanning tools verify the authenticity of customer information. Thus reducing the risk of fraud and identity theft. Biometric data captured during the video call is compared against identification documents. This ensures accurate identity verification. As a result, video KYC strengthens the overall security and accuracy of the process.
- Compliance with Regulations:
Online Video KYC solutions help businesses comply with regulations. They help implement robust processes. Facial recognition and document scanning tools ensure accurate and reliable identity verification. These solutions perform a real-time compliance check against global watchlists and databases. This reduces the risk of engaging with suspicious individuals or entities. Video recordings and audit trails provide an auditable trail of the verification process. This supports regulatory reporting requirements. With video KYC, businesses can maintain a strong compliance framework.
- Cost Savings:
Virtual KYC solutions help save costs by eliminating the need for physical infrastructure. They enable you to reduce personnel expenses and streamline operations. Automating the process reduces manual effort, saving time and resources. Online Video KYC solutions allow KYC agents to handle multiple verifications simultaneously. Hence, optimizing human resources. By accelerating the onboarding process, businesses can acquire customers faster. They can optimize operational efficiency. Additionally, video KYC mitigates the risk of fraud and non-compliance. This is crucial to avoid potential penalties and reputational damage.
- Improved Customer Engagement:
Online KYC improves customer engagement by providing a seamless and convenient onboarding experience. Customers can complete the verification process remotely, eliminating the need for in-person visits. This saves time and effort, enhancing customer satisfaction. The user-friendly interface and real-time interactions with KYC agents create a personalized touch. It also helps address customer queries promptly. By simplifying the verification process, online KYC ensures a positive customer experience. It fosters trust and loyalty.
By leveraging technology, businesses can streamline the onboarding process. They can reduce operational costs and expand their reach. They can also provide customers a frictionless experience, fostering 0.