ID verification is a standard process used in financial institutes and digital businesses to onboard customers by ensuring they are legal. But if the document attestation is enough in this digital village to onboard anyone. How can companies guarantee the customer is onboarding with the original document and it is the same person they claim to be? We discuss Online Video Identification.
Identity verification is the only technique for businesses to differentiate bad actors and prevent companies from criminals. Online video identification makes it adequate for financial institutes and businesses that rely on remote onboarding. This is vital in remote onboarding, where identity theft is more of a phenomenon than physical identity verification.
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What is Video ID Verification?
Video identification is a process to verify the customer’s real ID from the call; it is also known as Video KYC or Video Chat verification. It is a quick and secure method to onboard customers, especially companies that are working online.
The video verification enhances security and reduces false results during remote onboarding. A robust video chat ID verification process raises the bar for identity theft and protects the banking system. Moreover, it also streamlines the compliance process with international regulations such as AML, KYC, and KYB.
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There are several methods for identification, from traditional to digital, but the primary step depends on the company policies and the nature of the services the customer needs. From conventional face-to-face verification, the customers visit the bank’s branch and physically handle the documents to register themselves as clients.
Real-time video identification is the same, but the whole process is conducted remotely from anywhere. The software matched the picture on the ID, and the user on the video call confirmed that both persons were the same. If the cross-check is positive, then the ID Check is successful.
How to Verify Identity via Video Call?
There are various techniques to verify customers’ identity, but remember that it depends on the company’s nature, which will assist them in compliance with national and international laws. Relying on customers’ pictures and documents for identification is not an authentic and trustworthy method for financial institutes.
This process can be used for low-risk industries but not for high-risk industries. The financial institutes must use online video identification to verify the customer’s identity. Below are the steps followed internationally in video calls for KYC verification:
Users first register on the identity verification platform and sign up to schedule a video call for KYC Verification. Companies can use third-party video call identification software, which streamlines the customer onboarding experience. For registration, the customer must add their email and verify their email address. These can be the official websites and apps of the financial institutes.
After registering, customers submit the documents to verify their identity. These records can be passports, driver’s licenses, national IDs, or government documents. It ensures the company’s customers exist in the real world and the users do not counterfeit the papers.
Digital KYC software verifies these papers by attesting security features such as signatures, fonts, borders, and texture. They utilize machine learning and AI technology to reap accurate results and are less error-prone.
Once the document is collected, electronic identity verification starts by verifying the authenticity of the papers, from checking the paper’s security features to cross-checking the written data. It ensures the customers submit original papers for identity verification.
To confirm the reported data on the papers are accurate, the system scanned the submitted pictures and converted written data into computer-readable text through Optical Character Recognition (OCR). Then, match all the converted data into watchdog databases to ensure the customer is not involved in illicit activities.
Video Call Identification
The Customers can schedule a video call at their convenience. They will get a private link, which allows customers to start a call with the agent at the scheduled time. During the call, the agent will ask the representative to send a selfie or a picture for face recognition.
They also compare the person’s face on the video call and the picture attached to the document to ensure that it is the same as who they claim to be. For more secure online video identification, the agent will collect the signature on the white document for the e-signature verification.
Outcome of Online Video Identification
Video chat ID verification is convenient for banks and other financial institutes to onboard customers remotely. It accelerates the onboarding process and enhances customer onboarding. Electronic IDV is also more secure than the traditional KYC process. Financial institutions can bolster their security and onboard customers confidently.
Online video verification of the clients leads the companies toward an economic boost by increasing customer trust and loyalty. Companies only have to use robust technology and adequate electronic ID verification software to streamline global remote onboarding.