Video-based KYC Identification Procedure: What Advantages Can Organizations Expect?


With the introduction of lockdowns and other restrictions, many sectors got adversely affected. Similarly, the finance sector was also forced to adapt to work in this situation. While internet banking and other online services were already available to the customers, one of the main issues that financial institutions faced was how to do identity verification remotely.

With the help of new digital solutions like video KYC that has been approved by the Reserve Bank of India, banks, and other financial institutions can now complete the verification process of their customers remotely through online video calls. Let us look at the benefits that video KYC brings to financial organizations and customers.

Financial Organizations Benefit From Video KYC in the Following Ways-

  • It reduces the overall cost related to document verification: In the manual document verification process, banks and companies had to spend a significant amount and time verifying the customers' details. From getting additional equipment, extra travel costs, and the time spent on verifying paper copies, the old process was time taking. With the introduction of video KYC, customers just need to send the photo of their signature, Aadhar card, and PAN card through the camera. There will be an executive from the bank who will oversee the process. An OTP will be sent to the mobile number registered with the Aadhar card and will help in the completion of the identification process.
  • Innovative technologies are being introduced to make the process more accurate secure and quicker: The Reserve Bank of India has also allowed the implementation of digital technologies for video KYC for banks and other institutions. Machine learning and artificial intelligence models are rapidly progressing technologies that are being used to automate the video KYC process. By scanning and analyzing a lot of data, the software conducting video KYC for banks can learn to filter out wrong submissions and confirm correct documents quickly.

Apart from banks and other institutions, the introduction of video KYC identification procedures has also made things convenient for customers.

Customers Receive the Following Benefits From the Use of Video KYC Identification

  • The remote verification process is quicker: Previously, customers had to travel to banks with their documents and stand in lines for document verification. This process was time taking. With the introduction of video KYC India, customers can now complete document and identity verification remotely from their homes. They just need a smartphone that has a working camera and internet. The process is completed within a few minutes.
  • The verification process has become more secure: Video KYC India is secured through end-to-end encryption and other security measures. This keeps the data of the customer safe during the online submission of video KYC.
The points mentioned above show us the positive impact that video KYC has brought to the financial sector in India. It has benefited both financial organizations and the customers as the verification process has become more secure, accurate, and quicker because of the video KYC format.

Location: India

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