The rise of digital banking has revolutionized the financial industry, allowing customers to open accounts, transfer funds, and access services remotely. One critical aspect of this transformation is the implementation of Know Your Customer (KYC) protocols, which are essential for verifying the identity of customers and ensuring compliance with regulatory requirements. Among the latest innovations in this space, video-based KYC is rapidly gaining traction for its ability to streamline the verification process while maintaining high levels of security and compliance.

Using video for KYC involves verifying a customer’s identity through live video interactions. Instead of traditional face-to-face meetings at a bank branch, customers can complete the process remotely, often via a smartphone or computer. During the video call, a bank representative verifies the customer’s identity using their government-issued documents, such as a passport or driver’s license and may ask for real-time biometric data, such as facial recognition or a digital signature.

One of the most significant benefits of video KYC is the convenience it offers to both banks and customers. Previously, customers had to visit bank branches in person to complete KYC formalities. Using video methods from home, this process can be completed from anywhere, saving time and effort. This is especially valuable in the current digital-first environment, where customers expect fast, frictionless services. It is also significantly quicker than traditional methods. With real-time verification, customers can be onboarded in a matter of minutes, reducing the lag associated with document submission, in-person appointments, and manual verification. This speed enhances the customer experience and allows banks to operate more efficiently. The use of video also enhances security by using advanced technologies like facial recognition, AI-based identity verification, and liveness detection. These tools help ensure that the person on the video call is genuine, minimizing the risk of identity fraud. By incorporating biometrics and real-time analytics, banks can safeguard against fraudulent activities that might slip through traditional verification methods. This method ensures compliance with AML and KYC regulations while adapting to the global trend of digitalization. 

iProov, Gold Sponsor of our upcoming event the 2nd Client Onboarding and Digital Identity Summit for Financial Institutions, offers a liveness detection solution that combines software with science to build world-leading liveness technology that continually adapts to the evolving threat landscape. They offer low-friction face capture where multi-frame liveness detection analyzes the imagery for spoofs presented to the camera, such as 2D and 3D masks, photos, and presented videos, and the device for spoofs injected into the system, like emulators, virtual cameras, and man-in-the-middle attacks. They also offer a dynamic liveness check that provides a high security passive challenge response. For the highest identity assurance, patented Flashmark technology sends a unique colour code to the device. The reflection of light confirms the individual is authenticating in real time, delivering advanced protection against AI-generated attacks, like deepfakes.

In conclusion, video KYC methods like liveness detection are transforming the way banks verify their customers. It is not only making the process more efficient and secure but also meeting the demands of a rapidly evolving digital banking landscape. To meet with iProov and connect with industry leaders, attend the Innovatrix 2nd Client Onboarding and Digital Identity Summit for Financial Institutions in Prague, Czech Republic, on September 18–19, 2024.

For more information, visit our website or email us at info@innovatrix.eu for the event agenda.