Detailed Guide on Video KYC Solution: Need, Facts & Steps to Video KYC Process

Online financial crimes such as money laundering have been a huge problem for financial institutes such as banks and NBFCs. And KYC procedures were initially introduced to deal with such challenges. However, as online criminals become smart and crimes become more sophisticated, financial institutes must take better security measures, such as a video KYC solution.

This blog sheds light on what Video KYC is, a brief overview of Video KYC, types of Video KYC, the need for Video KYC, and some facts, along with a video KYC solution that banks and other NBFCs can rely on.

What is Video KYC?

Video KYC is a pretty new KYC or Know Your Customer procedure that involves video-based verification of the customers’ KYC information. It’s a compulsory procedure that banks need to perform before they allow customers to use their services.

Video KYC is a part of Customer Due Diligence (CDD), measures taken to detect and prevent money laundering, fraud, and usage of illegal funds for illegal acts such as terror financing.

Because there’s a live interaction between the customer and the other entity conducting the KYC adds an extra layer of protection. This way, business entities can verify and be sure that customers are who they claim to be.

Types of Video KYC

The RBI introduced Video KYC on 9th January 2020 in an official notification about video KYC for banks. Video KYC is an umbrella term that includes all types of video-based KYC verification procedures. There are three types of Video KYC procedures:


VCIP stands for video-based customer identification procedure initiated by the RBI for use by non-banking financial institutions and banks for customer onboarding. However, only banks can perform online Aadhar verification. Other non-unregulated financial institutes have to rely on offline methods.


VBIP stands for Video-based Identification Process notified by the IRDAI for use by general and life insurance service providers.


VIPV stood for Video In-Person Verification and was initiated by SEBI for use by its registered intermediaries who wish to start account-based relations with individual consumers or investors.

Why is Video KYC Needed?

Video KYC solutions enable cost-efficient, hassle-free, and fast onboarding and offer added security to businesses against identity fraud. By opting for Video KYC for identity verification, businesses can prevent the following:

Spoof Attacks

Criminals have become quite smart and use fake or stolen identities to bypass verification systems to perform spoof attacks that are hard to detect. However, by using AI-based video KYC solutions, a business can identify and prevent such frauds from happening.

Deep Fakes

Criminals, using AI, create deep fake or falsified videos to fool ID verification systems to gain authorised access to systems. However, with online video KYC solution, businesses can easily detect deep fakes.

Synthetic Identities

Often fraudsters combine personal information such as social security numbers with fake data to create real-looking identities and proceed with their malicious activities. Such frauds are also complex to detect as identities look real. However, such frauds can be dealt with using video KYC solutions that require live interaction.

What are the Steps Involved in Video KYC Verification?

In Video KYC verification, the customer interacts with the verification expert through a video call, presents their ID, and answers questions if required. The interviewee then verifies the customer’s liveness and documents to complete the verification process. Here are the basic steps involved in Video KYC:

  1. The user registers with the platform on their application or website.
  2. The end-user then gets an invite for video call verification with an expert.
  3. KYC expert then interviews the end-user for liveness detection.
  4. The user is prompted to display ID documents by the KYC expert.
  5. The documents are verified against official records using AI.
  6. The face of the user in the video matches the photo in the documents.
  7. Failure or Success is displayed.

Commonly Unknown Facts about Video KYC

Here are some facts/benefits of opting for video KYC solutions:

1. Video KYC is Fast

Using a Video KYC solution for identity verification, businesses can cut short the customer onboarding time by around 90% because there’s no need to upload documents and wait for days. Customers can share the requested details while on call and experience seamless onboarding.

2. Better Security

Video KYC solutions require customers to record a video of themselves or attend a live video call. This way, it becomes almost impossible for criminals to fake their IDs as AI-based systems detect any ill attempts offering better security.

3. Easy Data Management

Unlike traditional verification methods wherein several documents must be maintained manually, video KYC solutions automatically store the video interactions safely that can be referred to at any time by authorised personnel. This makes data management super easy and secure.

4. Improved Workflows

Traditional verification solutions require users to manually enter all the details in a paper-based form that is often lengthy and confusing. And sometimes, users have to be physically present, which is unfavourable, leading to a bad customer experience.

However, with a video KYC solution, customers can share all the required information on-call, which can be verified simultaneously by the concerned entities. Also, there’s no need to be present physically, and the process takes just a few minutes.

In a nutshell, video KYC solutions help improve workflows and deliver a good customer experience.

5. Data Analytics

Using AI and Ml-based Video KYC solutions, businesses can collect and analyse huge volumes of data to draw valuable insights and thus improve their guard against fraud.

How can Online Face Recognition Solution Help?

There are ‘n’ number of end-to-end Video KYC solutions that can help gaming, crypto, insurance, and finance businesses verify customer identities using Video KYC. OTheur verification system allows users to self-record their videos and send them for verification or perform agent-assisted live video verification as per convenience. The sophisticated AI solution detects any deep fakes, synthetic IDs, and spoof attacks, ensuring 100% accuracy.


Blogger By Passion, Programmer By Love and Marketing Beast By Birth.

Related Articles

Leave a Reply

Back to top button