With the rapid influx of digital services over recent years, there exist more opportunities for cybercriminals to exploit potentially vulnerable online businesses. As a result, enterprises have to face a drop in market reputation which ultimately affects their overall sales rate and customer loyalty. Apart from this, the COVID-19 pandemic has forced certain businesses to entirely shift their services to the digital domain to carry their proceedings and maintain fewer customer turnover rates. On the other hand, e-commerce and digital retail stores have faced booming success in terms of customer demand and increased warehouse production.
The Impact of COVID on FinTechs
Fintech businesses are no exception and are already flourishing despite the drastic changes earlier this year. Mobile payments solutions, blockchain and cryptocurrency, crowdfunding platforms, and other B2C organizations operating online have seen a constantly rising onslaught of customers since social distancing becoming the new normal. With the high demand for digital services, Fintech companies need automated solutions to deal with the highly increasing rate of customer onboardings.
Cyber Incidents and Identity Verification
Since anything on the internet is subjected to potential cybercrime, digital businesses need to keep an eye on financial fraudsters who are always in pursuit of exploiting the weakest link in an organization’s cyber defense systems. According to a survey conducted by Cyber Ventures, cybercrime attacks could annually cost around $6 trillion by the year 2021, which is an alarming rate of loss due to digital crime.
Fintech companies, which solely provides online services, need additional measure to safeguard their customers. Online identity verification solutions are a secure and reliable means to verify end-user identity and ensure transparent onboarding processes. Video verification procedures are a simple, credible, and quick way to know your customer identity and authenticate them over which involves video identification by video chat setup.
Video Verification for Fintechs
Video KYC (Know Your Customer) also knows as video verification entails a live video call setup with a Video verification expert and the end-user. The official provides instructions for the user to follow in order to proceed with the onboarding process. By displaying their government-issued original identity documents, the customer and the verification expert take part in a one-on-one session where the customer’s facial identity is matched against their photo on the identity document.
Fintech enterprises could hire the services of Video verification vendors to optimize their customer onboarding process which helps creates a sense of security for both the end-user and the digital services provider who is the actual retailer.
Advantages of Video Verification
Video Verification solutions come with a number of ways and means to authenticate customer identity through a safe and secure communication channel. A couple of them are listed below:
Prevention of Online Fraud
Identity fraud over the internet has caused a major loss in capital to online businesses around the globe. To tackle the ever-increasing threat of online identity theft, video verification solutions are essential as they act as a deterrent against them. The founder of TERNIO, a global Fintech Platform, endorses vide verification over other customer identification methods in these words, “Video would be more secure than photo-based ID checks. It’s much harder to fake a video, especially if the user has to meet certain criteria like holding a piece of paper or saying a certain phrase. I think ultimately, it gives all compliance teams more confidence that a user is who he/she says they are”
Paperless Customer verification
With video verification, remote customer onboarding is now possible at the comfort of one’s home. This not only protects the online business to safeguard itself from money launders but also complies with international KYC and AML obligations. The CEO of Shufti Pro, Victor Fredung talks about video verification in these words, “Video KYC is a robust safety measure, an additional layer of security to safeguard onboarding processes and to curb financial crimes, especially money laundering. A blend of video KYC and other AI-based verification solutions can prove to be an unbreakable risk cover for banks and businesses. ”
To sum it up, Video verification systems provide seamless solutions for the Fintech sector by safeguarding against identity theft and enhanced customer experience.