Banks, fintech firms, and insurance companies are the backbone of the economy of any country. With the rapid growth in financial fraud, these economic sectors have to onboard their customers by ensuring anti-money laundering (AML) and know your customer (KYC) regulations to minimize these financial threats. In the UAE, the law is stringent against serious crimes such as money laundering, tax evasion, financial scams, terrorism financing, illicit financing, and any other form of illegal activity. Thus, regulatory compliance is a must for banks, fintechs, and insurance companies within the UAE. In this scenario, a digital identity verification provider assists these financial businesses by providing KYC and AML solutions to stay compliant with KYC and AML regulations.
Video KYC is a revolutionary solution for banks, fintech, and insurance companies in the UAE. It helps in real-time identity verification of the client and reduces the risk of fake identities and deepfakes.
What is Video KYC?
Video KYC is a digital process that verifies a customer’s identity through a secure video call in which an agent authenticates the customer’s identity. Instead of visiting a branch, customers can complete their KYC through this video call. The verification officer asks questions related to the customer’s identity and matches the face with the picture on their ID documents. Video KYC solutions help to authenticate identities accurately and reduce the risk of fake identities.
The process typically includes:
- The customer joins a secure video session.
- The verification officer checks government-issued ID documents.
- Facial recognition features ensure the identity of the customer.
- Liveness detection features ensure a person is real and not using deepfakes.
- Data is stored securely to meet compliance requirements.
How Video KYC Helps UAE Banks?
Banks in the UAE are at the core of the financial ecosystem. Customer onboarding is a regular process in banks, and video KYC solutions allow for the digital onboarding of domestic and international customers. Video KYC can benefit UAE banks in various ways:
Faster Customer Onboarding:
The Traditional onboarding process requires in-person branch visits, paperwork, manpower, and multiple verification steps. But with video KYC solutions, banks can onboard their customers quickly and reduce drop-off rates. It enhances customer onboarding and provides a good user experience.
Compliance with Central Bank Regulations:
The Central Bank of the UAE requires banks to adhere to strict AML and KYC guidelines. Video KYC solutions support banks by ensuring AML KYC compliance, reducing failed processes, and eliminating the creation of fraudulent accounts.
Cost Efficiency:
A video KYC solution reduces operational costs by automating the identity verification process, allowing banks to offer seamless customer onboarding.
Global Customer Reach:
With video KYC, banks can remotely verify international customers who want to open accounts in the UAE without requiring physical presence.
How Does Video KYC help Fintech Companies in the UAE?
Fintech companies thrive on innovation, speed, and customer convenience. Video KYC solution provides smooth digital onboarding and builds trust while ensuring compliance with KYC regulations. Video KYC fits perfectly into their business operations and helps in various ways:
Digital-First Customer Experience:
Fintech users expect seamless mobile-first services. The video KYC API integrates easily into apps and allows for real-time identity verification without leaving the platform.
Scalability:
Video KYC helps fintech companies expand if their customer base increases in the future. The video KYC API can handle 1000-2000 to 10,000- 50,000 transactions.
Fraud Prevention:
Fintech firms often deal with high volumes of micro-transactions, and fraud risk is significant. Video KYC with liveness detection and facial recognition features helps to mitigate the risk of creating fake accounts and prevent fraud.
Building Trust:
Investors in fintech businesses look for strong compliance frameworks. Implementing a video KYC solution ensures legitimate clients and makes fintech companies more attractive to both customers and partners.
How Does Video KYC Help insurance Companies in the UAE?
Insurance companies also frequently have to onboard their customers, and video KYC solutions help with real-time identity verification during the onboarding process.
Prevent Fraud Claiming:
Fraudsters try to make fake insurance claims by using identity theft, which costs insurance companies heavily. To combat insurance fraud, video KYC verification helps in policyholder identification and ensures a person is who they say they are. It prevents fake insurance claims and secures insurance business.
Enhance Customer Experience:
Video KYC solutions providers provide a frictionless customer onboarding experience and authenticate identities quickly and accurately.
Regulatory Alignment:
Video KYC helps insurance companies in the UAE comply with regulatory requirements and avoid legal procedures and regulatory penalties.
Key Benefits of Video KYC For the UAE:
Speed and Efficiency:
Video KYC assists in fast customer onboarding and enhances work efficiency.
Enhance Security:
Video verification with AI-based facial recognition prevents fraud and deepfakes.
Customer Convenience:
Customers can complete their KYC verification remotely as per their convenience.
Cost Savings:
It reduces cost and time compared to the trading KYC procedure, which requires manpower, paperwork, and physical presence.
Scalability:
Banks, insurance, and fintech companies can onboard thousands of customers simultaneously.
Global Reach:
International customers can open accounts or purchase products remotely.
Secure Businesses with Real-time Identity Verification:
With UAE government initiatives and digital-first consumer behavior, video KYC will become a standard for onboarding. An AI and machine learning algorithm-based video KYC solution, UAE Companies can secure their businesses. Facial recognition and liveness detection features help to match identity exactly and mitigate the chances of deepfakes. UAE banks, fintech firms, and insurance companies prefer video KYC solutions for a frictionless onboarding process, risk evaluation, and compliance alignment.
By adopting video KYC, financial and non-financial businesses in the UAE can build trust for new investors, vendors, and clients. Trust is the most important factor for a financial company, and it helps build customer trust in the competitive market. KYC UAE is one of the leading video KYC providers in the UAE, providing an API to banks, fintechs, insurance firms, crypto platforms, forex traders, payment processors, BNPL companies, and other financial firms. With the right video KYC partner like KYC UAE, your business is secured, synthetic identity fraud is diminished, money laundering is controlled, regulations are complied with, and financial crime is mitigated. Adopting a video KYC solution is a smart move that will help UAE companies keep ahead of the curve and maintain a fraud-free business reputation in the UAE market.
