With the evolution in technology, scammers have revised their techniques to dodge the verification systems. It becomes really challenging for firms to check that the individual on the other side of the screen is authentic or a threat. Moreover, it becomes really concerning for industries to provide their customers with enhanced security while not compromising user experience. Thus, video KYC comes as a hope. It does not only onboard clients in real-time but also satisfies the changing regulatory landscape.
Among the major shifts that 2021 brought, digitization was the significant one. Many businesses moved to online mode in the wake of Covid-19. But this move which helped them continue their business activities has also made the industries susceptible to various crimes.
Sectors that Need Video KYC
With the shift towards digitization, clients’ demands have also changed. All businesses are looking for advanced security services to satisfy clients and better survive the digital age. Video check is indeed a great bet for different sectors to keep fraudsters away.
Banks and Financial Firms
Regulatory bodies have been observing banks and financial sectors strictly. Client verification during onboarding has been made obligatory for all the financial sectors. Conventional methods to validate customers have become obsolete as they are time-consuming and prone to human errors. So, video ID verification is a great choice for banks and the financial sector to onboard legitimate clients while staying compliant with the KYC/ AML regulations.
The payment sector interacts with other industry players which have made due diligence checks an absolute necessity to avoid scams and money laundering cases. Since the inception of AMLD5, the payment sector also comes under those regulated by authorities to follow KYC guidelines. The sector can tackle any kind of heinous crime by having robust video verification in place.
In this digital world, there is currently no sector that hasn’t been destroyed by scammers. The same is the case with insurance companies that have become a breeding area for fraudsters to carry out their nefarious activities. It not only makes company owners but also the victims deprived of their very rights. Having video KYC verification solutions, the insurance company can recognize every individual in real-time and can assure that only authorized persons can use their services.
Companies have gone digital due to the spread of coronavirus. The shift besides helping them carry out business activities virtually has also cost them huge. It becomes really tough for remote companies to identify whether the client sitting behind the screen is legitimate or not. Thus, video KYC solution helps them onboard only those clients who are genuine, preventing fraudulent activities and building firms’ credibility in the market. Many companies use document verification services to verify documents.
Non-Banking Financial Comapnies
Unlike Financial firms, NBFCs do not possess a banking license and they offer their services to only a tailored group of individuals. Contactless client onboarding is what these forms are striving for and for that video KYC is a fruitful solution. The verification process is complete in no time which helps the form onboard a large number of clients, leading to more revenue generation.
Due to digitization, the crypto industry has become a hub of virtual currency exchange. Blockchain technology provides safer transactions over encrypted channels. But its decentralized nature has made it vulnerable to many criminal activities. Digital crypto sectors are require to check that the users are not indulge in any kind of heinous crimes as mining of cryptocurrency has become common these days. Thus, the video KYC process is indeed a great option for the sector as it ensures that users conduct legitimate exchanges.
Fraudsters do not leave any sector unattended to carry out their illicit activities. They are even exploiting the car rental companies. They just get a car on rent and either go away with it or steal its valuable parts like car engines or wheels etc. With the advent of video verification, car rentals can now validate their clients virtually to avoid any possible fraudulent activity. Now the car rental companies can rent their cars confidently as KYC video helps them detect who is a legitimate client and who is a threat to them.
Video KYC is a great bet in the verification market. Besides providing enhanced security to different sectors, it helps businesses streamline their activities and also reduces the KYC process’s turnaround time. It helps companies to fulfill KYC/AML guidelines and prevent them from paying hefty fines. Other than this, it provides users with a great experience. When clients are satisfied, they talk about the service with their family and friends and build the company’s positive image in the market. The company can reach greater heights and generate more revenue.