In the age of the fourth industrial revolution, identity verification plays a vital role. A video KYC solution can help businesses streamline the onboarding procedure. With the help of such services, businesses that implement the latest customer verification can ensure high security. Moreover, clients receive the due guidance that they need to finish the entire process without mistakes. This approach strengthens customer relationships and saves time and company resources.
The following articles will let you know the deep significance of video KYC services and the real difference between the traditional approach & the innovative method. Moreover, what benefits can corporations have by implementing cutting-edge services?
Video KYC Services: A Brief Overview
The need to implement the latest customer identification procedures is growing with time because of increasing fraud cases. With digitization, the need to implement the latest video KYC solutions is also growing. This requirement is especially applicable to the financial sector because in the case of non-compliance experts have to face huge financial fines and even experience permanent bans. These steps are important to discourage money laundering and terrorism financing cases along with identity theft.
Video KYC is about face-to-face verification. During this, an expert plays an important role in establishing customers’ identities. This is based on the records given by customers to identify themselves. Hence, the innovative approach ensures high security and attracts genuine customers from around the world.
By implementing the latest video KYC services, firms can easily identify their clients and safely store sensitive data. This way, there is high confidence in experts that the system will attract genuine clients and deter bad actors. In this way, corporations can make informed decisions on who to establish relationships with and how to deal with high-risk entities.
Understanding the Difference Between Traditional KYC & Video KYC Solutions
Before entering the digital age, companies had to perform KYC procedures manually. It was a major concern for financial institutions. For instance, while establishing a relationship with a client, banking experts had to get forms filled out and scanned records. After completing the lengthy procedure, customers had to wait for several days, sometimes even months to receive the final verification results.
In modern times, corporations are realizing the importance of digital video KYC solutions to offer safety and a positive customer experience. This way, companies can easily fight fraud and avoid hefty fines from global regulatory bodies. Clients no longer need to visit the site to receive results and they can benefit from services from the comfort of their homes.
The latest video KYC services can save time and company resources because the digital process takes only a few seconds to produce high-quality results.
The use of the video KYC approach is also safer than outdated approaches, facilitating easier fraud prevention. Moreover, there is no requirement to visit the site physically. This way, companies are helping clients to save time and have a positive experience.
KYC Regulations in Germany
Several countries around the world are using the required KYC procedures in mobile banking and other financial firms. This is connected with AML regulations to discourage money laundering and terrorist financing cases. Nonetheless, there are variations in KYC & AML regulations around the world. Even within the EU which talks about AML directives, there is nothing identical in the concerned member states regarding regulations. The following section talks about Germany and the regulations related to it.
In Germany, the unit supervising KYC procedures is BaFin which is based on AMLD5. It has made video KYC solutions compulsory and clients must fulfil all the requirements and not skip a single step. Moreover, it is the responsibility of all banks in the country to validate all customer IDs in order to mitigate the risk of money laundering.
Best Advantages of Applying the AI-driven Verification Solutions
Implementing the latest video KYC solution can help institutions as well as individual clients. Firms can offer high-security levels and discourage fraud attempts such as identity theft, money laundering, and terrorism financing cases. On the other hand, genuine clients who fulfill all the steps get access to online banking, payments, and shopping from the comfort of their homes. This way, clients can easily invest money and the only requirement is having an internet connection.
The whole procedure takes less time and is highly efficient than outdated approaches. Additionally, there is no appointment required for a certain time and place because everything is available digitally.
The Bottom Line
Corporations can collaborate with a third-party vendor to implement the latest video KYC solutions which are according to the requirements of businesses. All video verifications happen according to the standards of European countries.
The video validation services are carried out effectively and securely through KYC experts. Firms that use the latest video KYC solutions that fulfill the given requirements should be confident that onboarding clients will not be a threat. An additional layer of security is the power to check clients for sanctions and identify any PEP entities.
