While social distancing became necessary during the epidemic, many organizations began onboarding clients digitally. This acceleration toward digitization is further with the integration of an online face verification technique.
These tools allow KYC professionals to identify customers. After checking the customer’s credentials, a corporate representative will ask for their government-issued identification documents. Major financial institutions and other mobile wallet providers have begun to build the infrastructure required for this advanced facial recognition approach.
Use Cases of Online Face Verification in Businesses
As a result of COVID-19, the number of home-based employment is expanding, raising cybersecurity threats and promoting employee fraud. Malicious hackers are taking full advantage of the situation, gaining illegal access to important assets and industrial data. Online face verification guarantees that only genuine employees enter the company. Furthermore, only authorized personnel may see company profiles.
Insurance fraud is more common, with fraudsters scamming firms using stolen identities and fake documents. Businesses and victims risk violations of their rights due to these threats. Insurance companies can use online face verification to verify that only authentically authorized customers use their services.
Payment sectors require online face verification since they collaborate with other industry leaders to avoid payment fraud. Implementing anti-money laundering systems in financial institutions now follows it. This process is incomplete without online face verification, which is now the most important integration in AML systems.
The regulatory authorities conduct detailed examinations of banks and financial institutions on a regular basis. Online face verification of customers throughout the onboarding process is required to comply with KYC and AML standards. These institutions accept the online face recognition process when physical presence may not be possible. This is a promising new approach to real-time consumer verification and AML/KYC compliance.
Unfortunately, money laundering is increasing, even in the property dealing sector. A news release states that money laundering through real estate causes enormous financial harm. Effective KYC/AML solutions incorporated with face recognition technology are required to combat criminals. This technology in real estate firms assists in discouraging illegal activities by recognizing fraud identities. Connecting with brokers to affiliate and verify them using online face verification is a reliable and rapid technique of doing KYC for the consumer.
The Metaverse and Crypto Industry
In the metaverse and bitcoin market, online face verification is a potential tool for better confirming individuals’ identities. It authenticates clients in real time via a series of checks, including validating their original IDs. As a result, bitcoin users, on the other hand, construct a legal portfolio that they later utilize to carry out legal transactions.
Non-Banking Financial Companies
NBFCs, unlike financial businesses, do not have a license but provide services equal to those of a banking system. Such companies operate primarily to provide financial services to a certain group of customers. As a result, seamless online face verification incorporating the KYC process for client onboarding is transforming the industry.
Automobile Sales and Rentals
In the digital age, there are more crimes. Fraudsters use fake identities to buy a car or rent one. They just depart after completing their illegal mission, leaving the car’s owner in a terrible situation. Furthermore, fraudsters routinely take valuable automotive components, such as wheels and engines, and conceal them in the trash where the authorities can find them.
Customers can remotely prove their identity to car rentals via an online face verification system. Due to new techniques of client verification, they take their actual IDs and then approve their identity. Car rentals can eliminate fraud attempts by implementing a face verification solution. Rental firms may use it to lend out their automobiles to anyone without fear of their security being disturbed or their vehicles being stolen.
The global online face verification market grew rapidly during the COVID epidemic and will continue to grow. Globally, the banks authorize the addition of client face verification to the requirements for customer identification. The idea was to give them a pleasant and secure environment in terms of security. This online face verification provides relief to banks and fintech businesses by providing the best customer onboarding services. This feasible integration of online face verification enables consumers to come onboard remotely. Furthermore, it shields all organizations from large noncompliance fines by requiring them to follow KYC or AML laws.