What is the difference between Digital Kyc and Video Kyc ?

KYC, or Know Your Customer, is a process used by businesses and financial institutions to verify the identity of their customers. Digital KYC and Video KYC are two different methods employed for this purpose, and the primary difference lies in the way the identity verification is conducted.

1. Digital KYC:

   • Process: Digital KYC typically involves customers submitting their identity documents electronically, such as through a website or mobile app. The customer provides scanned copies or photos of their identification documents (like passport, driver's license, or ID card) along with any additional required information.

   • Verification: The submitted documents are then verified using automated systems or manual checks. This process may involve comparing the information on the documents with existing databases or using facial recognition technology.

   • Flexibility: Digital KYC is more flexible in terms of when and where customers can complete the verification process. It can be done remotely without the need for face-to-face interaction.

2. Video KYC:

   • Process: Video KYC involves a live video interaction between the customer and a KYC agent or system. During the video call, the customer presents their identity documents, and the KYC agent verifies the authenticity in real-time. This often includes checking for security features on the documents and ensuring that the person on the video call matches the photo on the ID.

   • Verification: The KYC agent may ask the customer to perform specific actions to demonstrate that they are not using pre-recorded videos or images. This method adds an additional layer of security and reduces the risk of identity fraud.

   • Compliance: Video KYC is often used in situations where regulatory compliance requires a more robust and immediate verification process.

In summary, while both Digital KYC and Video KYC serve the purpose of verifying customer identities, the key distinction is in the method of interaction. Digital KYC relies on electronically submitted documents and may use automated verification processes, while Video KYC involves a real-time video interaction with a KYC agent for a more secure and immediate verification process. The choice between the two methods often depends on regulatory requirements, the level of security needed, and the convenience for both the business and the customer.