KYC Verification through Video: Detailing the Expectations and Advantages

Streamlining Identity Verification: The Rise of Video KYC in Germany

In the digital age, verifying identities has become a crucial aspect for businesses, especially in the financial sector. One such innovation that is gaining traction is Video KYC (Know Your Customer). This process allows users to confirm their identities in a live video interview with an identification operator.

Preparing for Video KYC

To embark on a Video KYC journey, users should ensure they have a few essentials at hand: a web camera and microphone, a quality internet connection, a web browser, and an ID document. The system evaluates the identity document based on criteria such as visual identifiability, integrity, lack of manipulation, date of issue and expiry, period of validity, and orthography.

Compliance and Security

Video KYC is mandated for various entities in Germany, including credit institutions, financial services institutions, payment institutions, e-money institutions, e-money agents, investment management companies, insurance providers, cryptocurrency service providers, and more. The process is designed to comply with strict KYC (Know Your Customer), AML (Anti-Money Laundering) regulations, and data protection laws such as GDPR and PSD2.

The VideoIdent Process

In Germany, customers can verify their identity through a secure video call with the bank or service provider, where a trained agent checks the customer’s valid government-issued ID (passport, ID card) and matches it with the live video feed to ensure authenticity. This method is common for non-residents or remote customers.

Required Documents

Typically, users need a valid ID with apostille or legalisation if issued outside Germany, company formation documents (for business accounts), commercial register number, proof of representation rights, and proof of address such as a utility bill. Foreign-issued documents must be authenticated (apostilled or legalized) and possibly translated, as German banks legally must verify identity both for natural persons and legal entities.

Integration with German eID

Video KYC can also incorporate Germany’s electronic ID verification where the user enters their 6-digit PIN, and the system reads the NFC chip on their ID card as part of the digital identity verification during the video call.

Security and Compliance

Video KYC services must ensure encrypted, HTTPS-secured communication, adhere to GDPR for data privacy protection, and follow secure data storage and incident response protocols. The user's head and shoulders should be visible, clear of shadows, uncovered, distinguishable from the background, and recognizable during the video identification process.

The Video Identification Process

Schedule or initiate a secure video call with a certified KYC agent.
Present your valid ID document on camera for live verification.
Possibly enter PIN and use eID NFC chip reading for electronic verification.
Submit additional required documents either digitally or translated/hard copy legalized.
The bank or provider verifies documents and identity according to AML and KYC regulations.
Completed verification is logged and stored securely for regulatory compliance.

A Time- and Cost-Effective Solution

Digital onboarding solutions like Sumsub offer a Video Identification solution that businesses can integrate or delegate to their experts for end-to-end onboarding. This solution helps businesses ensure compliance with regulatory requirements, protect against fraud, and maintain high conversion rates. Sumsub's video identification solution is a ready-made system that combines compliance expertise, a powerful technological platform, and trained operators.

Video identification is not only a requirement in Germany but also in other jurisdictions such as Canada, Malaysia, Singapore, India, Estonia, Lithuania, Latvia, Austria, Ireland, Liechtenstein, Switzerland, Spain, Portugal, Luxembourg, Hungary, Netherlands, Slovakia, UK, Romania, Poland, Belgium, France, Greece, Slovenia, and more. As the digital landscape continues to evolve, Video KYC is poised to become a standard practice for identity verification, offering a more friendly and efficient alternative to traditional methods.