We know how important is the KYC and AML process for financial institutions. Banks can’t be careless with the KYC process because this holds some of the sensitive information. This information helps the bank to identify that the persons opening the account are legitimate and thus are less likely to commit any crime.
Why Video KYC?
During the KYC process, the banks collect some sensible data like location, occupation, status, ID. The most secure form of KYC for banks and customers would be to visit the banks and provide the documents to the concerned person, which are needed for the completion of the process.
But not all customers have time to visit the bank and do face-to-face interaction. This is one of the reasons and the second reason would be that what if the Financial Institution lies outside their hometown.
Thus, Financial Institutions are looking out for an online KYC verification platform through which customers can be onboarded without visiting banks. And these problems can be solved by the Video KYC process which can verify the documents and images provides by comparing them with the video provided by the customer.
The next section in this blog will cover the benefits and how the video KYC is done.
Prerequisites for Video KYC:
- Customers might be asked for Aadhar OTP.
- Original PAN card.
- A smartphone with good connectivity.
Steps Involved in Video KYC
- Verification of information provided by the Customer.
- Customer picture clicked.
- PAN card picture is clicked.
- Audio-video interaction is validated.
Benefits of Video KYC
- With Video-KYC Customers from worldwide can be onboarded without visiting any bank and waiting in queues and that too with greater security.
- It is very quick and is completed within 2 minutes. Customers are only required to display their valid ID documents, say their name and date of birth.
- It helps financial institutes to recruit or onboard many new members as a result of speedy KYC processes.
- Ensured security because of the end-to-end encrypted data.
- An agent assists the whole video KYC process, and the only thing required from the customer side is better connectivity.
- You can avail all banking features by doing video KYC because it’s similar to the whole KYC process.
Both face-to-face KYC and Video KYC have some challenges. Like, the successful completion of Video KYC requires strong and reliable connectivity and requires customers to make a video of high resolution so that the agents couldn’t miss the facial details. While there are cases when agents analyze the video and there are also cases when the software or algorithm matches the photos with the picture in the documents provided, which again needs Software to be highly reliable.
While there are some shortcomings in both methods but we must not forget that Video has emerged as an easily accessible tool and we may see every bank switching to the video KYC process in the coming days.