Ever since the pandemic hit us, every major industry has gone through drastic market shifts. The way routine proceedings were conducted has changed, forcing businesses to adopt the digital route. While the outbreak has spelled disaster for the most part, it can also be perceived as a blessing in disguise.

The world was already en route towards digitization, and COVID just sped up the process. Now every sector is witnessing an unprecedented digital transformation surge. While the transformation has worked wonders for most industries, it is the banking and financial industry that has garnered optimal results.

Now people can rent a car, book a house, or get a loan, everything within their home’s comfort. The major prerequisite to facilitate such ventures securely is KYC. Knowing the customer is crucial to ensure the opposing party’s application is accommodated with good faith.

Video KYC solutionis the ultimate solution the banking and financial sector has come up with, so let us understand a bit more about the subject.

What is the Need for Video KYC Solution?

The pandemic has forced everyone to function remotely. Therefore, it is crucial to equip the masses with an economical and effective system. A digital system catering to the user demands while complying with the social distancing setting.

KYC is an integral aspect of the financial industry, but the standard procedure was full of holes, such as:

  • Maintaining physical documents, resulting in unnecessary consumption of space, manpower, and time.
  • With offline documents comes the possibility of the data’s misuse.
  • The TAT (turnaround time) for every file increased, hindering the user experience.
  • The process overextended due to reasons like customer availability.
  • Rural areas did not have the means or knowledge to indulge in such methods.

Then came the pandemic, and practicing the traditional KYC procedures was effectively impossible. There was an abundance of reasons to dismantle the existing system, and COVID-19 proved to be the ultimate catalyst.

The world is mass adopting digital means, and video KYC solution is amidst them. The speculations stating that the video KYC market will amass a value of 500 million USD by 2026 are evidence to support the statement. Now, with RBI allowing Indian financial authorities to practice video KYC, things are looking to be moving.

How Video KYC Works?

The video KYC process allows banks and financial institutions to confirm their consumer’s identities via a video call. It eliminates the need for physical contact, proving to be a life-saver during the pandemic.

The RBI’s guidelines regarding the process are clear. An elected office from the financial authority can remotely verify a user’s identity via Aadhar Card/PAN and a sequence of viable questions. To ensure the consumer is physically present in the nation, the agent needs to capture the geographical coordinates. The institutions must equip the agent with a smart device to conclude the procedure.

As stated by the central bank, the video call’s origin must be a domain of the involved bank and not any third-party source. Including a series of random questions is necessary to prevent any misconduct. It will act as a real-time verification that no dummies are involved. Plus, the call needs to be encrypted to avoid any security breaches.

With the process becoming a market norm, several video KYC companies like AuthBridge are helping businesses with their esteemed AI-powered ID verification and onboarding solutions.

Why is Video KYC the Ultimate Solution?

With businesses going digital and social distancing becoming a norm, video KYC can solve various concerns without hassle. However, the solutions need to be well-adept with the latest market technologies. Techs like Artificial Intelligence and Machine Learning are pivotal to conduct digital identity verification.

With a viable video KYC partner like AuthBridge, you can avail of benefits like:

  • Reduced costs during the authentication process.
  • Shorter onboarding time to help SMEs complete the lending process.
  • Detect security concerns like impersonation and online fraud with a liveliness check.
  • Enhancing the user experience with quick decision-making.
  • Decrease the overall turnaround time (TAT).
  • Improve the people management proceedings.
  • Get more viable consumers to join your venture.
  • Get esteemed features like geo-tagging, AI, and liveness detection.

In Conclusion

While the pandemic has presented the world with a box full of adverse scenarios, it has also helped several industries go digital. The banking and financial sector is amidst the circles benefitting from new means like video KYC solution.

The global video KYC market is on a roll, with worldwide financial institutions mass adopting the tech. The sheer scope video KYC provides for the industry is never-ending. The blog has shed some light on crucial facets such as why video KYC is needed, how it works, and how it can help the world.

Read through and improve your knowledge on the subject to enhance your procedures as well.