Last Updated on April 17, 2024 by Umer Malik
The business operations underwent a considerable transition as a result of the rapid technological improvements. The same thing has happened in the biometric identity verification market. The client ID validation method, referred to as video verification, has undergone major progress as a result of evolving trends. The digital revolution resulted in a number of difficulties. However, a real-time video identification system is a relief for everyone.
Real-Time Video Identification in Different Industries
Remote Companies
During COVID-19, remote work and home-based jobs were on the rise, which posed cybersecurity threats and increased identity theft. Scammers are fully exploiting the situation where they are getting illegal entry into the vital resources and data of organizations. To make sure that only actual employees enter the company, video KYC becomes a necessity. Additionally, video chat ID verification ensures that only workers whose identities have been given authorization can access the company profiles.
Insurance Firms
Scams are more common in the insurance sector. Fraudsters destroy businesses by posing as customers using fake documents and fabricating proof to support their heinous claims. Such crimes violate the rights of both corporations and victims. Therefore, insurance companies can use the online video identification system to make sure that only approved and lawful customers are accessing their products.
Payment Industry
Since the payment industries collaborate with other key stakeholders to combat money laundering and avoid payment fraud, due diligence processes are crucial for them. Financial institutions must now adhere to the KYC process due to the adoption of AMLD5. The cost of prepaid cards has decreased from 250 to 150 euros. Because of this, real-time video identification helps the payment industry prevent money laundering and safeguard payments against fraud.
Financial Institutions
The regulatory authorities continually look at banks and financial institutions in depth. In order to comply with KYC and AML regulations, users who work for financial institutions must do real time video identification of customers during the onboarding phase. Video KYC has become a potential solution for real-time customer identification and AML/KYC adherence.
Real Estate
Unfortunately, money laundering is now more prevalent than ever in the real estate sector. A press release claims that utilizing real estate for illegal money laundering causes costs $1.6 trillion. They need efficient AML and KYC techniques to combat criminals due to the continued rise in nefarious activities. Customer onboarding video in real estate firms helps to thwart illegal activity by recognizing questionable identities and abiding by AML guidelines established by regulatory organizations. Connecting with manufacturers and suppliers and verifying them with video recognition is a trustworthy and efficient way to perform KYC for the customer.
Bitcoin Industry
In the bitcoin industry, video KYC is a practical method for successfully verifying consumers’ identities. The user must approve their original IDs by providing a photo of themselves, and presenting the other necessary documents pertaining to their personal information in order to verify identity by video call.
NBFCs
NBFCs, as opposed to financial institutions, don’t have a bank license but yet offer services that are similar to those offered by a financial system. These companies exist mainly to provide a specific demographic of customers with financial services. Therefore, frictionless KYC for customer onboarding will greatly benefit NBFCs.
Car Rentals
Crime is on the rise today. Fraudsters even rent automobiles using phony identities and after doing so, they just go, leaving the car’s owner in a terrible situation. The pricey parts of the car, such as wheels and engines, are commonly taken out by the criminals, who then conceal them in a dump where the police can find them.
Due to new techniques for client identification, car rentals may be able to remotely identify customers using a real-time video identification procedure by gathering their legitimate IDs and afterward confirming their identity. Only with the help of video verification, rental agencies can prevent any fraud attempts. Through video identification, these companies may rent out their automobiles to anyone without having concerns that their protection becomes compromised. Thus, it is a great security service for businesses.
Final Thoughts
Due to the rising digitalization, there’s been a substantial change in customer behavior. To satisfy shifting customers’ requirements and thrive in the digital world, companies are searching for more efficient online solutions. In the age of digital verification, real-time video identification has become the new standard. It facilitates the onboarding process and effectively cuts down on turnover time. All sectors are only guaranteed fraud-free client onboarding by this solution. As a result, this would shortly be included in all the industries that do not already offer its services.
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