Benefits of Video Verification for Fintechs and Digital Customers
Benefits of Video Verification for Fintechs and Digital Customers –
As the world is rapidly moving toward digital means of interaction, the fintech sector and other areas of the finance industry also took a step ahead in the run. However, scams in all the industries are increasing as well since fraudsters are figuring out more sophisticated methods of using artificial intelligence for their malicious intent.
With the rise in scams, there is a dire need for robust verification systems that can filter scammers before they cause any trouble. eKYC was an emerging trend but now digital Know Your Customer has taken an advanced step and introduced video verification. It is a verification process where a KYC expert authenticates the identity of the client on a live video call. The client has to show a document as identity proof. The expert checks the document for forgery or folded ends, photoshopped documents, and photocopy. In case of any misconduct, the onboarding application will be rejected.
Video KYC is a stringent verification process, which assists companies to onboard legitimate customers and fraud prevention in the firm. It is beneficial for all industries, but the fintech industry can benefit the most. Here are some of the advantages of online video identification for digital customers and the fintech industry.
Cost and Time-Effective –
Performing a KYC process is essential for organizations. However, the traditional method of verification is very time-consuming. It takes days to verify one client and demands a lot of effort from the employees too. Moreover, the cost of traditional KYC is higher than one can expect. Video KYC is a digital method which not only saves cost, but it also saves a lot of time for the customer as well as the employees.
Fraud Prevention –
Identity theft, account takeover, money mules, and money laundering are some of the scams that are rapidly increasing in the fintech sector. Companies face a lot of trouble in the form of hefty fines due to negligence in the digital customer onboarding process. Instead of relying on the time-consuming traditional know your customer verification process, it is better to opt for online video verification. It is more effective in fraud prevention.
Complying with KYC Requirements –
Countries in different regions of the world have KYC requirements to combat crimes, especially money laundering. Video verification makes it more convenient for all organizations to comply with the KYC requirements of the state. Otherwise, there are hefty fines and complicated regulations for the companies that can be troublesome for the reputation and survival of the accused firm.
Enhanced Customer Experience –
Improving customer experience is the fundamental target of all the firms, but is it possible if a company takes days to complete the process and clients have to stand in the queue for hours to get verified? No, because customers admire convenience, which is possible with online verification of identity. Retaining and attracting customers gets easier for companies since the digital methods take minutes for verification and video KYC also allows remote onboarding.
Lesser Human Errors –
With traditional KYC, the chances of human errors significantly increase since KYC experts have to verify thousands of customers manually. On the contrary, video KYC makes it more convenient to verify all the users in seconds without any human error. It is a hybrid technology that uses AI and human efforts for verification, eliminating the chances of errors.
Improved Security Measures for Data Protection –
Previously, organizations faced tremendous obstacles in the name of fraud because the verification system lacked efficiency. The verification data was also prone to breach. Now, data stays protected on a cloud-based server with complex security measures. Furthermore, the digital process prevents fraudsters from gaining access through forged documents or stolen identities.
Verifying customers before any transactions is crucial for companies. Scams are increasing rapidly and you never know when a customer with a fake identity enters the businesses and you end up in a fraud. Identity theft, financial crimes, money mules, and credit card frauds are some of the common types that the fintech sector and digital customers have to face.
Controlling the growing number of these scams is possible with video verification. It is cost and time-effective and also reduces the number of dropoffs for businesses. Complying with the KYC requirements of the country is also convenient. Furthermore, it enhances the customer experience, which is beneficial for the company.
Author Bio –
Ben Zane, A Digital Marketer at Shufti Pro. Always stay passionate and determined towards what I plan, develop and implement.