Understanding video KYC: A complete guide
KYC verification is an integral part of opening bank accounts. KYC stands for know your customer, which is an important step followed by many banking sectors. This is done for security purposes, verifying the customer’s identity and residence to avoid banking fraud and risks. The traditional KYCprocess requires a lot of paperwork and documentation. And it is a time-consuming process; it will take days or weeks. Nowadays, video KYC arrives as a trend. Let’s understand how the video KYC process works and how it benefits us.
What is Video KYC?
As the name insists, Video KYC is taken online through a video call. KYC specialists will verify the customer’s identity and liveliness when opening a bank account. It is a contactless verification that can be done within a few minutes. Not only in banks, most organizations and financial institutions are following this KYC process before onboarding a customer. Video KYC simplifies the verification process at a considerable range.
Traditional KYC vs. video KYC:
Traditional KYC follows a customer identification program (CIP) to verify the customer’s identity and address. This process will take weeks or months to complete and involves lots of paperwork. It consists of a lot of physical visits. High-cost expenses will be spent on verification.
Video KYC is a digitized form of the verification process. There is no need for paper works, and it can be done within a few minutes. It is cost-effective and saves time and effort of people. It is a real-time verification of customers and business partners to ensure their identity and liveliness.
Steps involved in Video KYC:
Customers are instructed to do a Video KYC before opening a bank account. For that, you need to visit the official bank and submit a request for video KYC. That request application form will ask you to attach some identity proofs of you. The process of video KYC is listed below:
The KYC specialists will arrange an online video call. They only start the video call. The process will be done by trained specialists only.
They will capture a live photo of you and detect your live location using geo-tagging software.
You are asked to show the identity proofs. This includes your Aadhaar card, driving license, and PAN card. The specialist will ask you a few questions regarding the documents.
They will verify the live image of you and your photo in the documents match to ensure your liveliness.
The whole call will be recorded, and your approval or rejection will be declared once the call is done.
Benefits of video KYC:
As we mentioned earlier, video KYC saves the time and effort of a lot. The ultimate aim of the process is to prevent scams and banking fraud. The physical presence of customers was optional. This is the faster and more seamless verification process. Video KYC provides a better customer experience and suits many people stuck with their work. As it was a face-to-face video interview, the safety of the documents was ensured.
Final words:
KYC is done to avoid conflicts and it ensures providing services to the right customer. The above-mentioned points will clearly explain video KYC processes and benefits.











