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Video KYC: A Big Step towards Digitalization

A commonly heard term in the banking industry is KYC (Know Your Customer). KYC is the process or step in which there is an assessment of the customers’ profile. It evaluates the risk of the customers of a bank or financial institutions to ensure that they comply with the Anti-Money Laundering (AML) laws. 

With the emerging technologies like Artificial Intelligence (AI), UIDAI Biometrics, machine learning, face matching and recognition, the concept of Digital KYC took birth. E-KYC or Digital KYC was able to surpass the issues that the manual KYC process faced earlier but was still lacking in achieving complete digitalization. The prominent technology which is helping us to go fully digital is Video KYC.  

What is Video-KYC?

Video KYC or VCIP is the process of digitally authenticating the customers and overcoming the difficulty of physically examining the documents. KYC verification involves checking all the documents submitted by the customers and the absence of the technology made it a tedious and daunting task for humans. The Video KYC has surmounted this hurdle, bringing efficiencies in the KYC process and reducing the expensive customer onboarding task. This proved to be mutually beneficial for the banks as well as customers. 

VCIP has gained a lot of attention majorly from the banking and financial institutions. They experienced an increase in productivity and speeding up the process due to minimal intervention of humans.

Video KYC leverages the video call technology in onboarding the customers via video KYC authentication which has proved to be the most significant development in the field of KYC. It is a simple, seamless and scalable process by which the institutions can acquire customer details and documents before onboarding them. This is a reliable system which uses AI-enabled technology that helps in the prevention of fraud and checking errors.  

The Benefits of Video KYC

  • This type of KYC verification process drastically reduces customer onboarding costs.

  • Streamlines the complex process through automation using Artificial Intelligence.

  • Helps to detect frauds and malicious activity and safeguards the investors.

  • Keep a check on criminal activities majorly money laundering

  • Cost-effective technology involving minimal paperwork

Video-KYC is monumental but just a mere step in the financial sector, furthermore, developing an impeccable experience in e-commerce, telecom and networking industry. 

You can check more blogs here: http://charlottepichain.blogspot.com/2020/06/video-kyc.html

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Charlotte W.

Charlotte W.

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PiChain

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Banglore

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This post is from a series of posts in the group:

Banking Strategy, Digital and Transformation

Latest thinking in respect to Banking Strategy, Digital and Transformation. Harnessing our collective wisdom to make banking better. Ambrish Parmar


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