Video Know Your Customer (KYC) solutions have emerged as a cutting-edge technology to verify customer identities without the need for in-person interactions. Especially useful in the times of social distancing and remote business operations, Video KYC is becoming increasingly popular among banks, financial institutions, and other regulated entities. However, as with any evolving technology, there are myths and misconceptions that surround Video KYC. Here’s an attempt to debunk some of the most common ones:
Myth 1: Video KYC Isn’t Secure
One of the most common misconceptions about Video KYC is that it’s not secure. However, reputable Video KYC providers implement robust encryption technologies, multi-factor authentication, and secure cloud storage solutions to ensure data safety. Not only does it meet the standard security protocols, but it often exceeds them, adhering to specific regulations and guidelines.
Myth 2: Video KYC Isn’t Compliant With Regulatory Requirements
Many people believe that Video KYC is not in line with regulatory standards, but this is often not the case. Reputable Video KYC solutions are designed to comply with regional and international regulations such as GDPR, AML, and CFT. They usually have features to ensure that they meet all legal obligations, from securely capturing and storing data to conducting live identity verifications.
Myth 3: It Requires Sophisticated Equipment
Another myth is that customers need high-end equipment to complete the Video KYC process. In reality, most Video KYC solutions are optimized for mobile and low-bandwidth environments, requiring just a smartphone or a computer with a webcam and a stable internet connection.
Myth 4: Video KYC Is More Time-Consuming Than Traditional KYC
Many believe that Video KYC is more time-intensive than its traditional counterparts, but in most cases, the opposite is true. Video KYC eliminates the need for physical paperwork, in-person visits, and manual verification, thereby streamlining the verification process and making it faster.
Myth 5: It’s Only for Tech-Savvy People
One common misconception is that Video KYC solutions are complicated and can only be used by tech-savvy individuals. However, most platforms are designed for ease of use, requiring the customer to just follow simple on-screen instructions. Plus, customer support is usually available to guide users through the process.
Myth 6: It’s More Expensive Than Traditional KYC Methods
While the initial setup cost for Video KYC may seem higher than traditional methods, the operational costs are often much lower in the long run. Digital verification eliminates the need for paper, postage, and manpower dedicated to manual verifications, thus providing a more cost-effective solution in the long term.
Myth 7: Video KYC Is Impersonal
Some believe that Video KYC lacks the ‘personal touch’ associated with face-to-face interactions. However, the real-time interaction feature in many Video KYC solutions provides a platform for human connection, often including the option for the customer to speak to a live agent.
As Video KYC continues to gain traction, it’s crucial to separate the myths from the realities. This technology offers secure, efficient, and cost-effective solutions for customer verification, making it a viable alternative to traditional KYC methods. Understanding the truth behind these common misconceptions can help both businesses and customers make informed decisions.