2021 has come with an increased drive for digital-only businesses and remote work opportunities. With a change in consumer behaviors, companies have to provide tailored solutions to survive the competitive market. Where the COVID-19 pandemic brought a disruption in the global economy, it brought forth a new wave of innovation. Today, when social distancing has become quite important, enterprises are shifting their user onboarding procedures to the digital space.
Shufti Pro Video verification often called video KYC, is a process to enroll customers to a business over a live video call, in the presence of a Know Your Customer (KYC) expert, who carries out the verification process. It allows customers to validate their identity at the comfort of their homes, without having to reach offices for a manual verification procedure.
Video Verification Walkthrough
The process of video verification comprises several steps which are listed below.
Initially, the end-user registers to the online platform by providing their name and other information like address, date of birth and country, etc. Then, the KYC expert and the user are connected through a video-call setup request or a videoID which initiates the video verification process.
Liveness and Document Verification
The expert interviews the user with a series of questions to assess the overall liveness of the setting and the physical presence of the user. The user is then asked to show their identity document in front of the webcam or smartphone camera.
The video verification system takes a screenshot of the document and runs a series of checks to determine the authenticity and credentials.
After the document is checked against possible forgery and photoshopped elements, the user’s document photo is then matched with a snap of them taken on the video call. Both of them are compared and the results of the verification are shared with the customer.
Industry Use Cases of Video Verification
Video verification could prove beneficial in customer onboarding in many industries and help businesses bring innovation to the table with remote verifications.
The Banking Industry
Global regulators keep a vigilant eye on financial institutions like banks and Fintech companies due to the volume of the monetary influx in their daily operations. The banking industry is subject to obligations such as Know Your Customer (KYC) and Anti Money Laundering (AML) to prevent illicit criminal activities through their platforms. Manual verification procedures are now easily outwitted by fraudsters and no longer provide protection. Video verification, being intuitive in nature, is a good option for banks to verify their customers, without the worry of illegitimate identities associating ties with their organization. This way, video verified individuals and entities could easily be authenticated in the future.
Companies and policy providers in the insurance sector are prone to a wide array of fraud. Insurance firms operating in the market need to be wary of stolen identities and false documentation for insurance policies. It not only takes a toll on insurance businesses but also affects the victims in the long run. Video verification provides a solution to this problem by onboarding only legitimate insurance customers over a live video session, regardless of where they are present.
Businesses for Mutual Funds
Digital businesses for mutual funds have seen rapid growth in recent years. They operate by collecting a sum of money from different investors and use it to buy stocks and different securities on behalf of the contributors. When it comes to onboarding new investors, the KYC process is one of the most important procedures. Vide verification, provides the all-important mechanism for performing e-KYC of potential customers making the process quick and reliable. This way, future investments are done by only trusted individuals and the businesses are safe from the risks of cybercrime.
The real estate industry is a place where cybercriminals make a lot of money by carrying out illicit activities. A whopping $1.6 trillion is lost annually in real estate money laundering, according to a study by UNODC. To put an end to the illegal flow of money and mitigating cybercrime, proper KYC measures are essential for companies and businesses operating in real estate. Video verification allows associating ties with trusted partners and real customers, which helps meet global AML regulations and keep fraudsters at bay.
To sum it up, video verification allows easy onboarding of real customers by verifying their identity over a live video interaction. Many industries can ensure KYC and AML standards using video verification.