Video KYC, or video-based Know Your Customer, has brought about a drastic change in the financial industry. As an innovative customer identification process, it employs live video interactions to verify identity documents and prevent fraud.
Streamlining KYC processes has become achievable with recent technological trends. For example, ICICI bank introduced ‘InstaBIZ’, an app meticulously designed to use Video KYC for immediate account opening and loan provision for MSMEs.
A Historical Perspective
Traditional KYC processes were heavily reliant on physical meetings and slow paper documentation. Spotting the need for a better, faster solution, the Reserve Bank of India (RBI) in January 2020 permitted the use of Video KYC. From there, it took off across industries, predominantly in banking and finance.
How It Functions
Video KYC relies on live video interactions between customers and a representative of the institution performing the KYC. The user has to show their identification document to the camera, answer questions, and provide facial recognition.
Market and Technological Impact
Video KYC has amplified cost-effectiveness and efficiency in the financial industry and beyond. It substantially cuts down on processing time, adds convenience, and reduces the scope for document tampering or false information. Moreover, it’s adapted to suit the work-from-home set-up dictated by COVID-19.
Latest Trends and Innovations
Notable advancements include Artificial Intelligence-backed Video KYC and Voice Analytics, optimizing security, accuracy, and efficiency. Fintech and crypto exchanges are rapidly embracing Video KYC for user verification. It is also used in account opening, insurance claims, and loan approvals.
Video KYC On MEXC Platform
(Optional) MEXC, a renowned global cryptocurrency exchange, implements Video KYC to ensure a secure user experience within the crypto trading landscape. The process involves submitting a clear photo of an ID card and a selfie recording to safely trade cryptocurrencies.
- Traditional KYC: Requires physical presence, slower, paper-based documentation.
- Video KYC: Completely digital, faster, more secure, live video interaction, adaptable to remote conditions.
| Method | Speed | Security |
|---|---|---|
| Traditional KYC | Slow | Low/Medium |
| Video KYC | Fast | High |
To conclude, Video KYC is a revolutionary solution to identity verification challenges, especially for remote, online transactions. By eliminating the need for customers and businesses to physically interact, it improves security and efficiency, shaping the future of the digital financial landscape. Usage in crypto exchanges like MEXC further underscores its relevance in today’s technological era.
Join MEXC and Start Trading Today!
