The introduction of visual KYC in recent years has redefined the adage “seeing is believing” like never before! Know Your Customer or KYC authentication is a necessary verification process in customer and employee onboarding across different sectors to ensure the organization’s safety and security.
And while the Adhaar card had been the most commonly utilized means of KYC verification, the Supreme Court order passed in September 2018 brought about a significant change in this process. Based on the Aadhaar and Other Laws (Amendment) Bill of 2019 and as an effective alternative to the SC order, the Reserve Bank of India introduced video KYC in 2020. Today, against the backdrop of the COVID-19 pandemic, video KYC holds more significance than ever before. What does video KYC entail, and why should financial and organizational bodies consult video KYC solution providers to avail of this service? Have a look:
What is Video KYC All About?
- The video KYC process essentially involves verifying the customer or employee through video conferencing and obtaining essential documents through online means.
- Thus, while the physical presence of the concerned individuals was previously mandatory for KYC verification, banks and companies may now contact individuals from anywhere in the world and initiate their KYC authentication.
- Following this virtual interaction, individuals must provide their identity proof documents online to complete the verification process.
- The video KYC process begins when the customers or employees visit the bank or company’s website, provide their details, and turn on their phone’s location for security purposes.
Relevance of Video KYC in the COVID-19 Pandemic
Here are some ways in which video KYC plays an integral role in the current COVID-19 pandemic scenario:
Contactless KYC Verification
At this point, having social interactions even to complete essential tasks like KYC is a significant risk. At the same time, the KYC process is crucial for onboarding any client or employee. Digital video KYC provides a suitable alternative to the in-person process, helping individuals conveniently complete their identity authentication from the safety of their homes.
Transcending Geographical Distances
Travelling across long distances for the KYC verification process can be time-consuming and expensive. Moreover, commuting such distances is a considerable risk during the COVID-19 phase. Video KYC solution providers offer a convenient alternative to transcend these distances, helping banks and other institutions contact potential customers and employees based anywhere across the globe.
Paperless KYC Authentication
With online KYC, offices can now bid farewell to the accumulation of papers and documents received from hundreds of individuals. Organizing, maintaining and retrieving such massive amounts of data can be highly time-consuming. Moreover, it requires staff members and the individuals being verified to physically report to the company to collect and submit these documents. However, online KYC offers individuals the convenience of uploading these documents on online portals, making the process more efficient and time-saving for both parties involved.
Video KYC has become an integral aspect of identity verification, especially when individuals are safer in the four walls of their homes. Premier video KYC solution providers offer cutting-edge technological solutions to companies and institutions from all sectors, helping them onboard clients and employees efficiently and securely and continue to stay afloat in the wake of the ongoing crisis.