Video Identification- A Step Up for Financial Institutions

Financial service businesses and banks have embraced financial technology to revamp their operations. Video identification is another technology that has aided financial services in enhanced customer onboarding. Facial recognition was already used by many businesses as a security measure to ensure their client’s identities. Video identification, now integrated with facial recognition allows financial service businesses to onboard their customers from their homes. This is quite useful as the COVID-19 pandemic has pushed people into their homes and business to operate remotely. In this blog, we will discuss the importance and procedure of video identification in detail.

Video Identification

The Need for Online Video Identification

Video identification is quite a popular concept these days and it has completely turned the idea of identity verification for financial institutions. It not only makes the whole identity verification process cost-effective, but it also saves a lot of time and helps the financial services to fight the growing number of fraud that the industry is facing. The money service businesses are always a target of fraudsters and this is why security has always been their biggest concern. Video identification is an effective solution to combat such frauds.

The Types of Fraud that Financial Institutions Face


    Spoof Attacks

As technology advances, so do the tricks by fraudsters to carry out their malicious deeds.  Spoof attack is one such trick that fraudsters apply to surpass the verifications system. Document and facial spoof are not easily detected. AI-powered technology integrated with video identification can help to detect such spoof attacks as AI technology alone is not enough to capture such spoof attacks.


    Synthetic Identities

Synthetic identity theft occurs when fraudsters try to combine a legit piece of information with fake information. For instance, the social security number paired with fake information can make a real-looking identity. Fake identities are hard to detect especially just through document verification. However, video verifications allow to capture of synthetic identity easily and protect the system from fraud.


    Deep Fakes

Deep learning can allow the fraudster to make falsified video and this is what deep fakes mean. This way fraudsters can manipulate the system and make gain access to the system. In face recognition technology, deep fakes can surpass the identity check by playing the falsified video of the identity theft victim. These videos look very much live and cannot be easily captured through just simple AI-powered face recognition technology. This drives the need to adopt a more advanced and effective solution of video identification that can capture any type of fraud.

Video Identification for Digital KYC

Before we get into the digital KYC, first let us understand the concept of KYC. KYC or also called Know Your Customer is a legislative measure that requires all businesses, especially financial institutions to verify the identity of all their clients to eliminate fraud in the financial sector. Businesses have adopted the digital method to follow the KYC regulations as manual means can be hectic, time-consuming and expensive.

Video identification allows customer onboarding by performing video KYC. Video KYC allows video chat for id verification on a live video call with a KYC expert. The KYC experts guide the customer through the process of verification and necessary verifications checks are performed before the customer is onboarded.

Steps of Video Identification KYC

  1.  The customer fills an online form
  2. The customer is connected with a KYC expert on a live video call
  3. The customer is asked to show their identity document in the camera
  4. Document verification is performed on the identity document.
  5. The AI-powered technology analyzes the document type and holograms etc to be certain that the document is not fake or doctored and the fraudster is not trying to surpass through synthetic identity
  6. The KYC expert asks some questions from the customer to ensure their physical presence
  7. The facial recognition technology analyzes the face of the person to verify their identity
  8. Facial recognition through liveness detection, 3D depth perception, skin texture analysis to ensure that no spoof attack is occurring
  9. The whole process is recorded with the permission of the customer
  10. The recoded data is then sent to the back office

This is how financial institutions are ensuring a smooth customer onboarding process that can be performed from anywhere.

read more: What are the Key Points to be considered while renting a Projector?





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