ADVANCE Video Identification – A Solution for Regulation, COVID-19 and Efficiency
22 April 2021
Written by Shu Pan, AI-Product Manager
Video identification is a process that supports live video chat as a new channel in addition to traditional digital identity verification processes. ADVANCE Video Identification, facilitated by robust live video streaming services, combines with a comprehensive identity verification workflow powered by ADVANCE.AI's proprietary AI technologies – has the excellent anti-fraud capability to prevent identity fraud. It is generally regarded as the latest and most advanced way to carry out the online KYC process, where KYC agents can verify the customers through a live video call in real-time.
The process of ADVANCE Video Identification:
A video call initiated either by the end-user (target of KYC) or KYC agent.
The end-user is guided to submit ID documents and relevant information for pre-call checks. Digital identity verification system (key functions usually include: OCR, Liveness Detection and ID Check) will run in the backend.
End-user joins a queue of service and subsequently gets on a live video call with KYC agent.
KYC agent conducts KYC and verification tasks during a video call with assistance from comprehensive functions of question list, comments, photo capturing, AI face comparison, etc.
TKYC agent assesses end-users qualification in a predefined checklist.
Video call completes and with all relevant information captured, including the video recording of the entire session.
How ADVANCE Video Identification works
Video identification process vs traditional KYC process
ADVANCE Video Identification provides customers with an easy and instant verification process while ensuring efficiency and accuracy in information collection for financial institutions, thus protecting all components from fraud attacks. Compared to the traditional KYC process, the video identification process has the following advantages:
Optimising customer experience:
All companies aim to improve customer experience, but customers often criticise the cumbersome and time-consuming traditional KYC process. The video identification process greatly enhances customer experience, enabling customers to obtain assistance and verification by a KYC remotely at any time or at a much wider time range and anywhere through a video call. Meanwhile, without the need for physical presence offline, the video identification process greatly saves the end-user's precious time. Moreover, considering the lasting influence of the COVID-19 pandemic, the guarantee of a touchless and contactless process like video identification makes customers more at ease.
Saving time and labour cost for the financial institution:
AI-powered ADVANCE Video Identification (including key functions such as OCR, ID check, Liveness Detection and Face Comparison) speeds up the verification process, saving time and labour cost for financial institutions. For example, OCR on documents could eliminate the effort for manual input of customers' basic information. ID check can cross-reference the ID document submitted by a customer against an official database to verify the submitted documents' authenticity. Liveness Detection ensures the real person to be there during the video call. Face Comparison verifies if the face of the end-user is matched with the picture presented on the ID documents, which avoids human errors. All these AI features shortens the verification process from hours and days to only minutes.
In sum, It's easy to discover that three widely recognised benefits drive the trend and acceptance of video identification:
Providing contactless service:
In many places, people were used to conducting the KYC process through face-to-face interaction with information and document submission. The COVID-19 pandemic introduced the sudden disruption of the traditional KYC by rendering it very inconvenient to conduct physical contact, thus boosting digital identity verification demands.
Adapting to tighter regulation:
With the popularity and efficiency of digital onboarding and KYC process powered by AI in recent years, many companies have realised the process fully automatic. However, many components, including governments and regulators, considered that the fully automatic KYC process makes system error and risk-prone easy. Countries like Germany and India have introduced regulatory requirements enforcing Video Identification to be part of the process to reduce possible risks from system errors.
With the worldwide improvement in network and communication infrastructure, especially the advent of 5G, the speed and quality of data transmission and data consumption are no longer a stumbling block in many countries. The convenience offered by Video Verification has been making it an inevitable trend.
Who can benefit from using ADVANCE Video Identification?
For any company that needs to perform KYC and customers onboarding, ADVANCE Video Identification is likely to be of great help. The following are some typical types of companies that could benefit from our video identification solution, but not all.
Banks, financial institutions and fintech companies
With the improvement of laws and regulations in various countries and regions, Video Verification during the onboarding process is becoming mandatory for financial institutions. ADVANCE Video Identification can also help them function more onboard and remote applications within a limited time and limited resources.
Insurance and loan providers
Insurance and loan industries are industries that usually confront a high risk of fraud. Many users try to defraud insurance money and loans through faked identity and forged documents. "Video + AI" features provide a packaged solution to efficient identity verification and fraud detection.
As electronic payments become more and more popular in people's daily life, either with traditional fiat money or cryptocurrency is getting popular rapidly. Compliance and business requirements on the KYC process in this domain has become the industry's most prominent topic. ADVANCE Video Identification as a robust solution can dramatically reduce risk concerns in the electronic payment account opening processes.
Looking forward:it is an inevitable innovation trend
Implementing video identification solution will be an inevitable innovation trend with the fast development in video streaming technology, network and AI. Meanwhile, the marketing demand for video identification increases significantly because of the growing identity theft risk in the digital era. According to recent findings from Global Identity and Fraud Report 2019: 55% of businesses in the financial industry globally reported an increase in fraud-related losses over the past 12 months. Furthermore, identity fraud scams grew 15% in 2019 to $16.9 billion losses and soared to $43 billion in 2020, as the annual Identity Fraud Reports released by Javelin Strategy & Research in 2020 and 2021, respectively. Indubitably, in the digital era, implementing a reliable digital identity for remote customers is a necessity, not an optional choice.
The COVID-19 pandemic has also increased the marketing demand for video identification. For example, in India, we have seen a monthly growth rate of over 300 % in video identification technology-enabled activity since May 2020. Furthermore, since the pandemic has given the identification technology industry enough time to educate the market, we have reason to believe that people will continue to rely on video identification products in the post-COVID-19 era due to their efficiency and robustness.