BusinessTech

Online Video Identification – A Promising Service in Different Sectors

As social isolation became necessary during the pandemic, an increasing number of businesses started onboarding clients and conducting customer verifications digitally. With the launch of an online video identification approach, this acceleration toward digitalization will continue.

A KYC specialist verifies identity by video call. After confirming the customer’s credentials, the company representative will request them to provide their government-issued ID documents. Major financial institutions as well as other mobile wallet providers have begun putting the necessary infrastructure in place for this innovative verification system.

Use Cases of Online Video Identification in Businesses

  1. Remote Companies

Home-based jobs are increasing amid COVID-19, posing cybersecurity risks and encouraging employee theft. Malicious hackers are taking full advantage of the circumstance and gaining unauthorized access to the institutions’ critical assets and data. Video KYC ensures that only real personnel enters the firm. Furthermore, only the permitted employees can view the corporate profiles due to identity validation.

  1. Insurance Companies

Frauds are more prevalent in the insurance industry, where con artists ruin businesses by using stolen identities and false evidence. As a result of these horrible crimes, businesses and victims face violations of their rights. Insurance businesses may therefore ensure that only legitimate and authorized consumers are using their services by using online video identification.

  1. Payment Industry

Due diligence procedures are necessary for the payment sectors since they work with other industry representatives to prevent payment scams. With the introduction of AMLD5, financial institutions now have to comply with the KYC procedure. The prepaid cards’ entry-level price has dropped. Video call for KYC verification thereby aids the payment sector in stopping money laundering and protecting payments from con artists.

  1.  Financial Institutions and Banks

The regulatory authorities constantly conduct rigorous investigations into banks and financial firms. Video KYC of your client during the onboarding phase is essential to adhere to KYC and AML regulations. These organizations only accept digital authentication; they do not accept physical verification. As a result, video KYC emerged as a glimmer of hope for real-time client verification and AML/KYC compliance.

  1.   Real Estate

Sadly, even in the real estate industry, money laundering is on the rise. According to a press release, unlawful money laundering through real estate results in losses of $1.6 trillion. To tackle criminals, effective KYC/AML solutions are a necessity. By identifying suspect identities, online video identification in real estate companies aids in deterring illicit activity. A reliable and quick method of performing KYC for the consumer is to connect with brokers and affiliates and verify them using real-time video identification.

  1.  Crypto Industry

Video KYC is a viable technique to better confirm users’ identities in the cryptocurrency sectors. It authenticates a client in a live video through a series of checks that include approving their original IDs and providing the other crucial documents. As a result, bitcoin users contrarily build an authorized portfolio that they use subsequently for the goal of carrying out legal exchanges.

  1.  NBFCs

In contrast to financial companies, NBFCs lack a bank license, yet they still provide services that are comparable to those of a banking system. Such businesses exist primarily to provide financial services to a particular team of people. Consequently, frictionless KYC for customer enrollment would revolutionize the industry.

  1.  Car Rentals

There are more crimes in the digital era. Criminals even rent cars using bogus documents and identification. After they carry out their illicit purpose, they merely vanish, leaving the car’s owner in a difficult situation. Additionally, scammers frequently remove the expensive components of a car, like the wheels and engines, and hide them in the trash where the police can discover them.

Car rentals can remotely authenticate consumers through a video verification procedure. They take their genuine IDs and then approve their identity due to new methods of customer identification. Car rentals can avoid any scam attempts with the use of video KYC. Rental companies can hire out their vehicles to anyone using e-KYC video verification without worrying about their security becoming breached or their vehicles getting stolen.

Final Thoughts

The worldwide video KYC market showed a sharp increase during the covid outbreak and will continue to expand. The Reserve Bank of India recently approved the implementation of online video identification as an addition to the client identification process’s standards. The goal was to use a video KYC solution to utilize the digital channel. Banks and fintech companies felt relieved by this specific initiative. It not only reduced costs but also made it possible for customers to be onboarded remotely. Moreover, it protects all firms from heavy non-compliance fines by making them adhere to KYC and AML regulations.

Kate

Kate Johnson is a content writer, who has worked for various websites and has a keen interest in Forex and stock market. He is also a college graduate who has a B.A in Journalism. Read More: Forex Signal Service Read More: Stock Trade Signals

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