Video KYC Onboarding – Safeguarding the FinTech Industry from Identity Theft

There has been a global digital transformation in the financial sector, which has, unfortunately, attracted scammers. Criminals seek opportunities to use the industry for their own ends. Without financial technology, there wouldn’t be a way to handle finances, invest, raise money, or manage assets.

The fintech sector has transformed to digital ID verification to meet Know Your Customer and Anti-Money Laundering requirements. The outdated methods had various weaknesses, which led to severe consequences for financial institutions. Therefore, specialists used ID validation films to prevent fraud. When onboarding new customers, video KYC checks are an absolute must.

Video KYC Solutions – A Quick Overview

A video KYC process helps firms digitally identify the customer during a real-time online conference. This method attracts legitimate customers and deters fraudsters from joining the company roster.

A KYC expert can onboard the customer and verify their identification quickly and reliably through video KYC. This cutting-edge method can aid Fintech firms in identifying legitimate from bogus clients. In addition, the video KYC verification method makes it easier to meet Know Your Customer and Anti-Money Laundering requirements in real-time.  

Using Video KYC to Secure Digital Payment Systems & Crypto Industry

While technological progress has benefited the current financial business, it has also provided sophisticated tools to criminals. Cybercriminals use synthetic identities to commit cybercrimes. To avoid detection, hackers employ similar methods. The importance of using a video KYC solution should be evident at this stage. This cutting-edge system provides a global line of defense against malicious attackers. Credential verification is a necessary first step for any crypto or digital currency firm that plans to onboard new customers. Video KYC checks make it simple for ICO and fintech service providers to adhere to regulations in other countries.  

Companies dealing in cryptocurrencies have an international responsibility to maintain full system transparency. The idea is to use a liveness detection tool with video-based ID authentication of consumers to deter spoof attacks. Therefore, the sector can take proactive measures to counteract the threat posed by money laundering and the financing of terrorism.

The Complete Working Procedure of Video KYC Services

Experts connect with the customer through video and assist them through the identification verification procedure. To identify any indicators of client manipulation, professionals will also ask them a series of questions. Below is a detailed walkthrough of the video-based ID verification process: 

  1. To use the system, customers must first complete an online registration form.
  2. After signing up, a Know Your Customer (KYC) specialist will contact the consumer to verify their identity in real time. 
  3. The consumer can understand the specialist’s explanations. Service providers may use liveness detection to ensure their customers are present during the verification process.
  4. KYC specialists will seek the customer’s permission to collect their data to finish the procedure. 
  5. The professional will request to see government-issued identification from the customer, like a passport, driver’s license, or ID card. 
  6. Experts in KYC procedures have the education and experience to spot fake documents and interpret user body language for clues of manipulation. 
  7. Video KYC systems use facial recognition technology to deter crimes in real-time and lessen the likelihood of human error.  
  8. After face and document verification, the user receives the authentication results. 

Top 4 Advantages of Video KYC Solutions for Digital Customers

An ID verification system that uses video is quick, trustworthy, and safe. Here are four significant benefits that customers will experience as a result of using this solution:

  • Offering Faster ID Verification

Video identity verification over the Internet is an excellent alternative to going to a bank. Clients will have a better experience, and the procedure will go more quickly under these conditions.

  • Improving Customer Experience

Customers may verify their identities by holding official documents before a webcam. The KYC specialist will also ask questions designed to identify any lies. After collecting user information, the state-of-the-art solution will double-check the data. 

  • Saving Time & Resources

Fintech companies can save time and money using the best video KYC solution. Innovative tools allow business owners to skip over methods that waste time and money.

  • Latest KYC ComplianceRequirements

Fintech companies must adhere to the most recent AML/KYC regulations to avoid hefty fines and permanent bans.

Concluding Remarks

Fintech companies provide state-of-the-art digital services to their consumers. Implementing the latest ID verification solution, such as video KYC, becomes essential for fraud prevention. In this progressive approach, the customer connects with a KYC expert who will verify the user’s credentials and store them as evidence. The professional also asks some basic questions to detect any signs of deception.
Implementing video KYC solutions also facilitates fintech companies to comply with the latest international guidelines. Thus, the fintech industry can provide its customers with a satisfying experience.

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