What do businesses deal with in the absence of KYC?
Know Your Customer – It is a process of verifying a customer based on their given information and stored data.
Therefore, it is a necessary step towards a more secured and protected future. With the rise in identity theft and cybercrimes, companies have shifted to various authentication methodologies.Online video verification is one of them.
We have discussed the basics and the significance of establishing the identity of clients through verification below! Without further due, let’s jump in!
What is the idea behind video-based KYC?
Video KYC is when verification of a client is done through a live video that is managed by the KYC agent of a company. It assists in confirming the identity and understanding the behavior of a user. It was approved and developed to help institutions like a bank communicate with customers before opening their accounts and analyzing their nature.
5 Reasons Why online video identification is integral for KYC
Digitalization of industries has opened gateways to online hiring, selling, and transfers. This however has made this convenience susceptible to cybercrimes. Illegal activities like money laundering and identity theft are breaking the backs of authorities. As authorities like CTF and FATF are imposing laws to combat cybercrime, new tools are being developed to make it happen.
Online video verification is one of them. There are several reasons why it has become significant today:
Deep Fake is an AI technique in which a video is created or an image with the likeness of a person. With time the deep fakes are only getting more challenging to detect as original or fake. It is a risky invention when it comes in hands of identity thieves. They can format videos by showcasing the faces of someone else. Therefore, live verification is the need of the hour.
Video-based KYC incorporates AI deep learning with human interaction in an attempt to fight spoofing attacks. Spoofing is when someone pretends to be legit to take confidential data or personal information from a victim.
This is only increasing,
In 2022, 255 million attacks were recorded related to various kinds of phishing and spoofing with a 61% increase from 2021!
3. Loss of Money To Authorities
Millions of dollars are lost in paying fines and penalties to legal authorities.
4. Global Hiring Made On-site Interviews Challenging
With the global lockdown following covid-19 in 2019-2021, companies realized they were missing out on talented employees just because of location constraints. Maybe their perfect employee lives in another country. Therefore, gateways to hiring remote workers opened up. That is why video KYC vendors stepped in!
5. Replacing expensive investments in paperwork or biometrics
According to studies, there will be a compound growth rate of 20.4% every year for the biometric market from 2023 to 2030. (grandviewresearch).
The tech and prices of advanced biometric systems will only expand substantially in the market. While it is a great incentive for giant businesses, growing companies can rely on other methods of verification too. That is where online video verification comes in.
Likewise, to do detailed paperwork for data storage, there is a greater demand for hiring manual labor.
Both options ask for huge amounts of investments. Hence, online video identification is a highly effective and budget-friendly option for the identification of clients.
Benefits of getting your remote workers KYC video verified before hiring
- Allows you to hire safely
- Builds basic connection with remote workers
- Will save you from fines for being non-compliant
Is customer onboarding video Important for boosting sales?
A customer onboarding video is an interesting marketing tactic to build rapport between companies and their clients. It is a short video, 2 – 6 minutes long with a general overview of the company, its services, and products.
It is truly an exciting technique to create credibility in your reputation which in return skyrockets sales and deals. Assisting in retaining new customers and showcasing your products is certainly a great move to increase conversions.
Therefore, yes. The better the video, the higher the sales.
How Shufti Pro Stands Out Amongst Other video KYC vendors
Let me give you a simple list of why Shufti Pro is one of the best KYC complaint firms amongst other video KYC vendors.
- Fully automated
- Highly Accurate
- Liveness Estimation In Video
- Global Instant Connection
- Comparison Of Video Identity With Stored Data
- KYC – Know Your Customer means being able to establish an identity of an individual by gathering, confirming, and validating data.
- Video KYC vendors assist in verifying identities through a live video call with customers.
- 5 ways it is important for security verification before onboarding.
- How onboarding videos connect customers with the services of an enterprise.
- Explored why Shufti Pro should be your go-to choice for smooth Online video verification.