The rise of COVID-19 has changed the way the world functions. With mandatory health protocols still in effect, different industries continue to adjust their processes to adapt to the new status quo. But this also presents new challenges and concerns, mainly regarding authentication security.
In order to ensure the security of both the clients and the business, financial institutions must comply with Know Your Customer (KYC) protocols. This means improving general cybersecurity strategies in terms of processing documents and IDs. Among these is video verification.
What is Video KYC?
Video-based KYC is a verification method that uses face-to-face interaction to authenticate a client’s identity. Financial organizations often conduct this process in the form of a video call where a KYC agent assists the customer.
Compared to the standard KYC process, customers will need to prove their identity by presenting their documents and information with a verifier on the other end of the video call. Other verification methods may also happen during the call, such as doing a liveness check and confirming the person’s location.
KYC Video Verification Process in Banks
Financial institutions such as banks use KYC to provide customers with a streamlined onboarding process. Here are the steps your customers go through during KYC video verification.
User registers on the platform
To begin, customers visit the bank’s website and register for an account. This will grant easier access to the services while giving the institution better means of processing requests.
They receive a live call from a bank representative for KYC
After creating an account, a call is scheduled based on the available date and time of the customer and bank representative. An automated confirmation will be sent via SMS or email with a joining link.
A bank representative conducts an interview for liveness detection
During the video call, the bank representative will guide the customer through the process. This will typically involve a liveliness check where the customer will need to perform random actions on request.
A customer’s address is confirmed through geo-tagging
The representative will also ask you to verify the customer’s given address. This can be done through geo-tagging in real-time or Google Maps.
The bank representative matches the given documents for verification
In the next step, the representative will review the submitted documents and match the customer’s real-time image with the photos on file. The customer may also be asked to recite specific information on their account to verify their identity.
The representative determines if the customer passes or fails the KYC process
Once the process is complete, the representative will evaluate the application to double-check the information. If the applicant fails, this may indicate that some information may have been inaccurate or incomplete.
An auditor conducts final reviews and informs the customer
If the customer passes the initial phase, an auditor will take a last look at the application before processing it. Once all information has been cleared, the customer will receive a notification of the result.
Establishing Safety and Security with KYC
As the world continues its battle against COVID-19, many businesses have had to adapt as they comply with the imposed restrictions. This has led to a heavy reliance on digital communications technology, where many face new compliance challenges, such as financial organizations with KYC protocols.
To keep your clients and business safe, your bank should have an adaptive KYC verification process in place. This not only helps improve identity verification but also prevents fraud. If you want to learn more about how this can help your business, reach out to our experts at Q5id today.