eID verification offers endless benefits for financial institutions, but the biggest thing it helps with is eliminating the risk of financial fraud. To streamline the transactions, customer verification, and client onboarding, eIDAS is vital.
It is almost impossible for individuals or business owners to get time out of their schedule to go to banks and financial institutions to open a new bank account or conduct any other kind of banking activity. The hours that banks operate under are not convenient for most and it is tough to go to the bank every other day to sign new documents for mortgage, vehicle loans or to finance important capital purchases for their businesses.
While limited banking hours can be frustrating, it can also be frustrating for banks as it can disrupt the efficiency of the workflow of financial institutions. Various work processes are delayed while waiting for documentation to be completed.
Having to wait can be extremely costly for banks and financial institutions that are there to make money. This situation has gotten particularly worse since the pandemic, that’s why having a fully digital system can be beneficial for banks and other financial institutions. Financial institutions that deal in cross-border transactions especially need to have digital solutions. It is vital that FIs also use electronic ID verification solutions that can help them verify who their customers claim to be. This is where the need for eIDAS becomes more than crucial.
All the members of the EU are required to follow the guidelines of regulations regarding cross-border transactions. This regulation outlines the legal requirements and standards for procedures used to assure online identification by using several techniques. Section 2.1.2 of eIDAS states all the requirements for “Identity Proofing and Verification (natural person)” as it is applied to three levels of assurance.
Bridging the Gap Between eIDAS and AML-Directives
Apart from complying with eIDAS to confirm the identity of their customers, FIs also have to comply with European Commission’s regulations to tackle threats of money laundering and terror funding. Since the 4th Anti-Money laundering directive, electronic documents qualify as valid documents for customer authentication and verification. With online document verification software, banks can comply with KYC and AML regulations much faster. This helps save time for both organizations and the customers during the onboarding process. Before the standardization of online documents for customer verification, manual verification and onboarding used to take up to 2 weeks.
eIDAS allows for cross-border validity e-identification, thus allowing banks and financial institutions to sell their products and services across nations within the EU.
The process of onboarding a new customer and verifying their identity is simple and can be accomplished by using any device capable of internet connectivity.
DIRO’s online document verification software helps banks and financial institutions distinguish between fake, stolen, and authentic documents during the onboarding process. DIRO can help authenticate proof of address documents, online bank account verification and so much more.
DIRO’s technology can verify over 7,000 document types from all over the globe and provides stronger proof of authentication backed by verifiable credentials. With DIRO, banks and finance can enhance the customer onboarding and eID verification process.