KYC requirements are compulsory in financial institutes, and as the world becomes digital, the regulation is revised according to the advanced technology everywhere. These all have a significant impact on the financial service companies and businesses.
Video KYC of your client is also one of these modern technologies which makes the financial world secure and user-friendly. Financial institutes always seek an easy and cost-effective resource to manage risk. End-to-end video identity verification is one authentic solution that will lessen the negative impact of AML or KYC regulations.
The Impact of Video KYC of Your Client on Business
Identity bogus most attacks on businesses, that’s why in 2022, the Federal Trade Commission consumer network took over 5.1 million reports, of which 46% were different frauds, and 21% were only complaints about identity theft frauds. These facts tell us it is easy for scammers to attack consumer information and get access to a treasure store on their personally identifiable information.
Identity theft is challenging for businesses. They must follow KYC regulation to reduce financial fraud risk if they want to onboard new customers or invest in the business. Below are the positive impacts of Video KYC of your client on the business.
KYC is essential to secure businesses from any identity theft, which can be using services for any criminal activity. Online video identity verification makes it easy for businesses to conduct
the KYC process remotely from home. Video remote verification is also simple and complies with all the financial regulations of the KYC. After the video KYC of your client, your business has in-depth information about the client so your business can fight against identity theft. Video security identity verification also reduces the fraud risk in the business and any associated losses. It ensures the organization concludes detailed information about the customer’s identity, financial background, investment knowledge and risk tolerance.
Combat With Money Laundering
Money launderers look for weak security systems to conduct their criminal activities, that’s why many financial institutions must have to follow the AML regulations. Video KYC of your client makes it easy to comply with KYC and AML regulations. After conducting video security identity, businesses can defend themselves from heavy charge fines and prison times.
For example, in December 2015, the San Bernardino terrorist attackers killed 12 and left 22 injured. The perpetrators had managed to get loan cash from the US fintech platform and used that money for the attack. One mistake from the prominent platform caused this attack and the loss of all those persons’ lives. This one example is enough to open the eyes of financial businesses to how criminals use companies to fund terrorism and money laundering.
Enhance Customer Experience
A video identification for ID builds trust between the company and the customer. It also makes the onboarding process smoother for the customers and less time-consuming for the companies. When businesses follow a proper KYC process according to regulation, it enhances customer confidence, and they feel secure working with the company.
Video KYC of your client also makes it easy for the other clients in the marketplace to trust each other because they comply with the company’s KYC regulations. Most industries which perform KYC need in-depth knowledge of the customer to protect the company from any sort of financial attack. For example, in the healthcare industry, fraudsters use the identity of patients to take advantage of healthcare insurance, avoid paying bills and exploit other patients’ data.
Always on Check
Many companies want to secure their business financial transactions along with the customer experience. Complying with the KYC regulation manually is lengthy, which exhausts the client. To minimize the negative impact, many industries drop the idea of KYC, which cause many issues in future. Video KYC of your clients shoulder the regulatory burden from your business and keep customers happy.
Companies that follow KYC with online video identity identification software continue to monitor the customer’s activity, such as tracking financial transitions. Constant monitoring helps the business supervise suspicious activity and bolster efforts to combat money laundering.
The main purpose of KYC is to confront that the customer is not using business services for criminal activity. It is vital for banks and financial institutes to prevent their business from money laundering and criminal activities. Video KYC of your client is a simple task to reveal the new customer’s identity. Video KYC beforehand assists businesses in knowing their customer better to manage financial risk diligently.
Catharsis Video KYC of Your Client
Businesses can prevent fraud by monitoring all services and carefully taking all personal information. Live video KYC of your client make this all easy, especially if you manage financial transactions or offer healthcare. You can also use video remote verification vendors, which use machine learning and robust technology for the KYC process.