The influence of technology in the financial world grows exponentially with FinTech being a unique term of its own to refer to the digital facilitation of processes such as payment, loan lending, and investing, etc. Businesses thrive from the benefits that FinTech provides, from greater customer acquisition to optimized and more secure services.
But with these advantages, there grow risks of criminals who equally come up with new methods of exploiting systems and laws. Through the years, the introduction of laws, regulations, and holding businesses responsible for not following Know Your Client (KYC) and Anti-Money Laundering Compliance contributed greatly to the handling and curbing of crime.
However, this does not seem enough in the battle for security which brings the need for newer and more sophisticated ways to verify customers since up to $2 trillion dollars goes into money laundering which constitutes for 2-5% of the global GDP.
One of these new methods of identity verification is through KYC video identification. This Know Your Client process is conducted remotely with the help of an expert communicating with the user to verify their identity. It is done through certain steps and holds many benefits for businesses that adopt this.
It is a fairly simple and convenient process that makes KYC and AML compliance easier to follow for businesses and financial institutions. It is done at the time of client onboarding to help securely verify their identity to avoid troubles such as identity theft and money laundering, etc.
The process is undergone through the following steps:
Making use of KYC video identification provides businesses and financial institutions with plenty of benefits namely:
This process saves time and the need to print and submit hardcopy forms. Not only does this simplify the process but spreads a positive attitude such as environmental awareness which catches customer appreciation which is rewarded through increased user acquisition.
There comes a lot of benefits by making the verification remotely carried out. It saves the customer’s time to travel and wait for a session with the business’s KYC expert. It saves the business time as well to tend to the customer’s paperwork when the process is digitized which allows for increased productivity towards other important tasks.
With the elimination of paper and printing, it saves businesses tons of money annually by performing this identification verification method virtually.
The profiles of users are securely collected through this method that eliminates the risk of identity fraud and the entertaining of malicious or troublesome customers with a criminal background.
原创声明:本文系作者授权腾讯云开发者社区发表,未经许可,不得转载。
如有侵权,请联系 cloudcommunity@tencent.com 删除。
原创声明:本文系作者授权腾讯云开发者社区发表,未经许可,不得转载。
如有侵权,请联系 cloudcommunity@tencent.com 删除。