As all of our transactions and other banking activities have moved to a digital space, the need for tighter and more secure ID verification increases. Regulatory bodies worldwide keep pushing the financial industry to adhere to AML and KYC laws more strictly. To ensure security, good customer experience, and proper compliance, firms have to expand their customer verification process. The right steps for ID verification require companies to use digital solutions that get the job done with ease. Innovative solutions and vigilance can ensure less fraud and better compliance. Here’s how an innovative global identity verification process can meet up the needs of the digital era.
The rush to transform traditional systems into digital systems in 2020 was because of the global pandemic. Across various industries, firms acted as quickly as possible to keep their business operations running. For consumers worldwide, this sudden shift to digital platforms came with some concerns. While 40% of consumers globally are concerned about the safety of their personal information, 60% of consumers prefer convenience over security. To successfully adopt digital measures, companies need to assure their customers that their information is safe from outsiders and insiders. Being able to establish trust leads to improved brand loyalty.
Providing companies with their personal information is usually a huge step for customers as the cases of data breaches are on the rise. However, in this rapidly changing environment, it is vital for customers to share personal information to use a service. With a certain degree of friction to the customer identification process, companies can build a sense of security in the minds of the customers.
There are some steps that firms all over the globe can take to ensure better security. Solutions like multi-factor authentication and cross-referencing of data can improve the customer experience while reducing the risk of fraud.
According to a variety of surveys, it was reported that more than 1 billion people across the globe don’t have solid proof of identity. This lack of information can cause friction in almost everything they want to accomplish. Financial freedom, business ownership, and even simple things like opening a new account can be a hindrance.
Innovative technological solutions like the use of alternative data can help firms bypass this barrier. This also improves the global identity verification process.
Companies that have to comply with ID verification on every application can make their identity verification process more robust with alternative data solutions. Regardless of the industry type and business size, companies can utilize another layer of data to verify customers.
Different Needs for Different Businesses
The identity verification process is fickle, regulations are always changing. Different technological solutions are suitable for different organizations. There are a number of techniques to verify customer ID and businesses need to figure out which one suits them the most.
Online document verification, biometrics verification, online ID verification are some techniques used during customer onboarding.
Digitization is something that’s been a point of focus for most industries for years. Small companies, big organizations, and companies spread over multiple countries need a comprehensive ID verification process.
Using alternative data does provide an extra layer of information during the customer onboarding process. However, solutions like DIRO online document verification API provides instant customer document verification that improves customer experience, reduces fraud and eliminates the use of stolen/fake documents.