Know-Your-Customer (KYC) is an important part of the customer onboarding process. It helps verify that customers are who they say they are and protects businesses from financial fraud and other crimes. There are several methods available for KYC, including physical documents and in-person interviews.
Recently, Video KYC Solutions have become a popular alternative for verifying customers. And several market research studies estimate significant growth in the video KYC market in India and elsewhere.
Video KYC Solution use facial recognition technology to verify a customer’s identity in a remote and automated fashion. It offers several benefits over traditional methods, including cost savings and improved customer experience.
However, many businesses and individuals alike are still skeptical of Video KYC Solutions due to certain myths and misconceptions. In this article, we will debunk some of the most common myths about Video KYC Solutions and show why they are an efficient, secure, and cost-effective solution for KYC.
Myth 1: Video KYC Solutions Are Unreliable
One of the most common misconceptions about Video KYC Solutions is that they are unreliable and not as secure as other methods. Individuals and businesses believe that Video KYC Solutions can be easily manipulated by fraudsters by using methods such as deepfakes or spoofing.
However, this is simply not true. Video KYC Solutions use advanced facial recognition technology to ensure that the person being verified is actually who they claim to be.
This technology is combined with other security measures, such as biometric authentication and machine learning algorithms, to ensure accuracy and security. They help verify the liveness and authenticity of the customer, making them a secure and reliable solution.
Myth 2: Video KYC Solutions Are Complicated and Expensive
Another widely-spread misconception about Video KYC Solutions is that they are too complicated and expensive. Businesses are often concerned about the cost of implementing such a solution, as well as the complexity of setting it up. This results in them opting for more traditional methods of KYC.
However, Video KYC Solutions are very simple and cost-effective to use. They require no additional hardware and can be easily integrated with existing systems. Moreover, the cost of Video KYC Solutions is far lower than other methods, offering businesses a cost-effective and efficient solution for their KYC needs.
Myth 3: Video KYC Solutions Violate User Privacy
While privacy concern is an increasingly important and justified issue, it should be noted that Video KYC Solutions are not a threat to user privacy. The data collected by these solutions is encrypted and stored securely, ensuring that it is only used for compliance purposes.
Businesses are also required by laws, such as GDPR to get customer consent before collecting any data, so users can be sure that their data is being used safely and securely. Video KYC Solutions offer an effective way to protect user privacy while meeting businesses’ compliance needs.
Myth 4: Video KYC Is Time-Consuming
This myth is more prevalent on the customer end. Many customers think that Video KYC solutions are too time-consuming and they would rather just use traditional methods such as submitting physical documents for KYC instead.
In reality, Video KYC solution are swift and efficient. The entire KYC process can be shortened from multiple days to just a few minutes with video KYC. The customer doesn’t have to wait in lines for hours or send their documents through the mail. This makes it a much more convenient option for customers who need to get their KYC done quickly.
Myth 5: Video KYC Solutions Don’t Work With a Diverse Customer Base
Lastly, another misconception about Video KYC Solutions is that they cannot be used with a diverse customer base. Video KYC Solutions is believed to only work with specific demographics, such as those from a certain country or region.
But this could not be further from the truth. Video KYC Solutions are designed to work with diverse customer profiles, including those from different countries and backgrounds. It also works perfectly well with different age groups and customers with disabilities. This makes Video KYC Solutions a great choice for businesses looking to cater to a wide customer base without any hassle or complications.
In conclusion, Video KYC Solutions offer businesses a secure and cost-effective way to verify customer identities and provide a quick, hassle-free way of doing this. By debunking the common myths and misconceptions associated with them, businesses can make an informed decision on their KYC needs.
This ensures that they are always providing their customers with a secure and efficient verification process. So, don’t be swayed by any of the myths and misconceptions floating around – Video KYC Solutions are here to stay! Implement them in your business today and reap the benefits!