4 Reasons why Video KYC will replace Traditional Verification Solutions
Identity verification of customers is the essence of a sound enterprise foundation. The conventional methods of identity verification are being outwitted by fraudsters and cyber-criminals. Due to the rapidly evolving technology in recent years, businesses are shifting to online verification services to reduce operational costs. The significance of customer identity verification is twofold: It validates the authenticity of the corporate’s clients which help prevent potential fraud, and it provides a good user experience by introducing intuitive and usability friendly services.
Apart from online identification, Video KYC solutions revamp online verification by fusing a video interactive setup, under the supervision of a verification expert, with facial and biometric authentication. This way, Video KYC service providers are bringing innovation to online businesses and enterprises.
Effortless Customer Experience
The experience gained by customers when interacting with a business plays a significant role in establishing a credible market reputation and a loyal customer base. It is crucial in maintaining considerable cash flow in the company and impacts the rate of customer conversion. Customers are the ultimate priority for startups and instituted corporates. Video KYC provides an effective means for validating user identity without the customer coming physically to verification sites and participate in lengthy procedures. They have the ease of verifying their identities at the comfort of their homes by interacting over a live video session.
Moreover, by combining automated verification solutions with Video KYC, the process becomes more efficient and precise. The user can verify themselves by displaying identity documents, or validating their face in front of a mobile phone camera, and wait for the system to perform authentication. Setting up a communication channel with Video KYC services is as easy as calling your friend on a video call. With video verification solutions, enterprises get to know their customers’ identity and provide them interest-oriented content, which creates better prospects of acquiring customers.
Secure Onboarding Procedure
For enterprises, a safe and secure customer onboarding mechanism is the ultimate game-changer. This is because if security is compromised when a customer avails a service, they may either be a potential threat to the business or, on the contrary, be a victim of it. Video KYC solutions are significant in knowing the identity of customers to prevent criminal activities and illegal use of resources. In the case of an impersonation attempt or forged documents, an expert eye over a video call could spot if it’s a fraud attempt. As a result, the verification process abandons the onboarding process and reports unauthorized authentication.
Video KYC services work in realtime that assists the customer during onboarding. The process is reliable because of the video interaction being intrinsic and lively. Any loopholes in customer identity could lead to a potential threat to the business. The entire verification process is carried out in a matter of minutes and is secure and fast. Customer identity is recorded at the backend system for future verification. Video KYC eliminates all potential vulnerabilities and ensures the onboarding process is transparent.
Lesser Operational Costs
Corporations are always aiming at keeping a steady cash flow by reducing operational costs. Maintaining a balance between revenue influx and costs spent on carrying out operations is essential for the business to progress. With Video KYC solutions, companies could reduce operational costs spent on manual verification and administration, which difficult to achieve without an online identification solution.
Video KYC vendors are striving to provide cost-effective solutions for video verification, which raises the likelihood of online businesses investing in their services. Maintaining a sound customer experience is vital while reducing KYC verification costs. Video KYC reduces onboard expenses for the clients and also saves operational costs for the enterprise.
Prevention of Identity Theft Incidents
Over the years, the substantial expansion in digital services has given rise to online identity theft. This increase has become an increasingly important security concern for enterprises. According to the financial report published by the Federal Trade Commission (FTC), there were about 651,000 identity theft-related complaints, and almost $1.7 billion were lost in fraud cases on the internet.
Payment card frauds are the most frequent identity theft practiced by online fraudsters. MasterCard’s Loyalty program in Germany faced a major setback in 2019, as a privacy breach compromised the identities of millions at stake. Today, due to synthetic account openings and data breaches, financial corporates are at a higher risk of identity theft. With identity theft being a prevailing threat, online businesses are fostering refined measures to hinder data loss while performing identity verification.
The presence of a comprehensive Video KYC service makes it easier to recognize identity theft as they usually incorporate artificially intelligent algorithms that provide better detection accuracy than human expertise. Computerized operations can better track down stolen card data by matching it with backend databases. Video KYC solutions are a priceless addition to the corporation’s arsenal in online fraud defense. They lower the risk of identity fraud with transparent and easy to implement verification.
To sum it up, Video KYC offers a secure verification channel over a video setup for safer customer onboarding, reduced operational costs, and defense against online fraud.