Video KYC Regulations and it’s Benefit to Banks
The fintech industry is introducing digital advancement globally. The word fintech industry relates to ‘financial technology’ that encourage digital transaction systems, resources management, fundraising, industry loans, payment transaction, and funding. Financial technology works with clients digitally just like physical banks and financial institutions work. The globally digital world desires each and everything online. It aids in reducing online crime and make sure that the onboarding of liable clients.
Video KYC regulations are a fast and easy procedure in which a video identification expert onboard the client and verifies identity verification. It is a safe process that aids financial technology businesses in achieving a secure client base. Therefore, know your customer and anti-money laundering compliance becomes simple when it comes to authenticating the client in the digital world.
Advancement in digital technology has allowed scammers to comply with any crime or identity theft with more experience in the form of spoof attacks. With advanced artificial intelligence algorithms, scammers can now excel in video KYC regulations. Video KYC regulations allow organizations to authenticate any identity thefts and fraudsters within seconds. The revolution system allows the expert to verify fraudster activities before they can be complicated for the organization.
Synthetic Identity Fraud
Identifying fake identities with a drop of real names is the most critical task. For synthetic identity frauds, scammers pick the bulk of real credential data and unite it with fake or fraud information pieces to generate a new identity. For example, an authentic credit card number combined with a fake number is hard to recognize. This is why video-based customer identification is a requirement of the professional world. It can easy easily detect synthetic identities.
Incorrect video verification is generated with the aid of a deep learning algorithm and the phenomenon is called deep fakes. These videos can aid identity thefts to get easy to the platform without verification. Extraordinary identity checks for instance would not be problematic during facial recognition with the aid of deep fakes. These are utmost close to real video-based customer identification can easily detect deep fakes.
The need to get video verified
Video KYC regulations have aided many organizations and banking sectors to fight fraud problems. It is lofty in demand as it increases the client’s onboarding procedure. The clients do not have to physically visit the place anymore, they can get their identities authenticated from anywhere around the globe through a video call. Therefore it saves a lot of time as it only takes a few minutes to authenticate the identity. It saves a lot of time and effort instead of carrying the procedure manually. This procedure has a high accuracy rate than the traditional know your customer process as it works both with AI and HI. This accurate accuracy rate saves the banking sector from facing the loss of money due to identity theft and criminal activity.
The process of knowing your customer is a requirement for every organization and video KYC regulation is an upgraded procedure of carrying out the know your customer process. It gives a more reliable result with both artificial intelligence and human KYC verification expert by cross-checking the entire process. This procedure has not only aid the organizations from a lot of operational costs and saved time for client onboarding too.