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Video Verification – Benefiting Financial Institutions

Before the pandemic, every business sector was working steadily. However, the arrival of the pandemic changed everything and businesses had to shift to digital business platforms to carry out their business operations. This was also an opportunity for cybercriminals to exploit the loopholes in the security systems of the corporations. This puzzled the businesses a lot and they wanted a foolproof system that could safeguard their database from bad actors. A video verification system is a promising solution that can facilitate businesses in their customer onboarding procedure. It makes the process positive by using advanced features like liveness detection. 

Online Video Identification – How Does the Video Verification System Work?

Whenever a customer registers for a video verification procedure, they get connected with a KYC expert. The professional guides them throughout the authentication process while performing the verification interview during the session. The KYC professional notices the body language of the client during the private session which helps them in verifying their identity. If they see any signs of nervousness, they dig deeper to remove any doubts. There are certain guidelines that every business must follow while employing the video verification system. 

  • They must record the private session and take several photos of the client
  • The software must take photos of the identity documents
  • The expert must cross-check the information on the documents with the data gathered within the session
  • The company must always update its AI software and video verification technology
  • All the data must be secured with the correct date and time stamps
  • The results of the video verification must be without a doubt

How Does the Application of Video Chat ID Verification System Facilitate the Financial Organizations?

According to the founder of TERNIO, the use of the KYC video verification system ensures better security than other authentication approaches in the market. The photo-based ID verification checks are less secure. The security guidelines in the video-based approach eliminate any doubts because the end-user interacts and follows the instructions. For instance, showing ID verification documents. In this way, it makes the team more confident in their approach during the authentication procedure. 

Additionally, according to a CEO, a video verification system is a powerful security measure that ensures multiple security layers during the client onboarding procedure. It also works efficiently against other financial crimes. If companies use video verification along with other verification services, it will create an unbreakable security wall against cyberattacks. 

  • Better fraud deterrence is one of the major benefits of the video KYC verification service. The live video session uses artificial intelligence and a powerful facial recognition system to counter fraud and safeguard the company from cyberattacks
  • An efficient decline in money laundering cases means that the financial resources of the clients are secure and the customer verification system of the company is foolproof. These results are easily obtainable by the implementation of a video verification service. The video data from the interview session also supports companies in cross-checking the data in multiple global checklists. It easily highlights any high risks clients during the onboarding process. In such a manner, the video verification software is extremely helpful against cyberattacks and money laundering cases
  • The implementation of the video verification method eliminates the use of paperwork and old authentication methods. They took up a lot of time yet the outcome had so many errors. Moreover, the use of artificial intelligence and liveness detection has reduced errors in the final outcome. It has also ensured a positive customer experience that has stabilized the clientele base of the organizations
  • The application of the KYC video verification service has enabled customers to authenticate their identities or documents remotely. It means that they no longer have to visit the organization for their purposes. This is another way to ensure a pleasant client experience and win their loyalty

A Special Note for the Clients:

There are three types of KYC video verification plans for financial institutions. They can select any of them based on their business needs. They are the following:

  • The company must know about the nationality of their clients to ensure a frictionless customer experience for them
  • Businesses can have their own KYC verification experts for the smooth video authentication procedure
  • They can also use artificial intelligence-based solutions without hiring a KYC expert

Final Remarks

To sum up, in the digital age it is critical for every business to perform a client identity verification process while onboarding their customers. It is critical for them so that they can show active steps against fraud prevention and money laundering cases across the globe. The use of a video verification system keeps the company’s database secure from bad actors. It does not allow hackers to attack the system because of AI integration and some special features (liveness detection and 3D depth perception). The application of the latest video authentication system enables companies to show compliance with the latest AML/KYC regulations. It is important so that they can avoid financial penalties from the global regulatory bodies.

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