The banking and other financial sectors are moving towards complete digitalization to have a global reach. The pandemic has also added the needed push to digitalize the customer onboarding process with minimal manual intervention completely. Video KYC is one such digital identification service that helps both customers and banks to carry out the process quickly without a physical visit to the office.
The technology is also helpful for executive screening and getting accurate KYC details without much paperwork and back and forth visits. There are many video KYC service providers available in the market and choosing the right one might be tricky. Let’s discuss some pointers on identifying the right Video KYC that can bring the best possible results for an organization.
A Brief Note on Video KYC:
Video KYC involves having a video call with a customer and capturing the KYC information such as photos, Aadhar, Pan Card, etc., in real-time. The digital signature or thumb impression and uploading the e-documents are also part of the video KYC process. The merits of using this system include live data capture, quick processing, easy tracking, and cost-effectiveness, to name a few. The best thing about video KYC is the fact that the customer and the official can carry out the KYC process from the comfort of their home from any corner of the world. The executive screening can also be done in the same manner only the purpose shifts from customer onboarding to employee background verification.
How to Find the Right Video KYC Solution?
The right video KYC solution for your company can be chosen based on weighing the performance as per the below factors:
Data Security:
The banks and financial sectors need to ensure the vide KYC process steps like image capturing, KYC data, signature, and customer profile are secured and match the regulatory requirements. Therefore, data security capability must be assessed while choosing a video KYC solution.
Fraud Detection:
Now customers can provide pre-recorded video for KYC if the live recording fails for some reason. The video KYC solution must offer end-end encryption to avoid any phishing, fraud, or false identification.
Minimal Dropout Rate:
Even though the video KYC process gets completed within 5 minutes, the customer can exit if there are technical issues or delays of any kind. It is challenging to get customers to redo the process, which leads to high dropout rates in the long run. Hence choose a video KYC solution that has the best features and offers a great customer onboarding experience without interruptions.
RBI Compliance:
As per RBI guidelines, video KYCs must be conducted by an RE officer and an auditor. These officers need video-KYC training, and the activity logs have to be kept for future records. Hence, when you choose to opt for a service provider, ensure they meet the RBI compliance requirements.
Accuracy:
Choose a video -KYC solution that is AI-driven consisting of high-quality facial recognition technology which offers maximum accuracy. The software must have OCR (optical character recognition), which can extract customer details such as an address, DOB, PAN, Aadhar, etc. Also, the officer must be able to do a liveness check, and GPS coordinates must be captured to confirm the address.
Cost:
There are hundreds of video KYC solution providers offering solutions at different prices. Some may offer services at lower prices but may have reduced features that do not meet your requirements. Hence choose a video-KYC solution that has all the necessary features that help to get accurate KYC data without interruptions and fulfills the RBI compliances at an affordable price.
Customise:
A flexible video KYC solution can help you perform multiple tasks like KYC verification for customer onboarding and executive screening on the same platform. The customization feature can help you set up different dashboards and monitor the activities accordingly. However, the solution must allow you to measure what matters and filter out redundant and irrelevant information.
Video KYC has become a necessity to banks and other sectors due to the pandemic and adding of new customers each day. The above seven factors shall help you make an informed decision on which video-KYC solution is the best for your organization’s goals. If a video KYC solution lacks any aspects, it will directly affect the customer experience, thereby tarnishing the brand value of your company. Hence, choose the video-KYC solution that will become an asset in the long run.
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