Technology aids in the advancement of the company and client connection. Nevertheless, everything has a disadvantage, and technology is no exception. Financial activities such as human trafficking, corruption, money laundering, synthetic identity fraud, data breach, ATO fraud, and others are increasingly being committed online due to these technological advancements. The digital world we currently live in has it all, and powerful digital ID verification technologies are guaranteeing that companies stay well-equipped to battle crime and safeguard their customers’ personally identifiable information from scammers. Keep reading this article to learn more about the many types of companies that might benefit from identity verification.
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What Do You Mean By Digital ID Verification?
The process of checking clients’ papers in order to onboard only authentic persons as clients is known as electronic document verification. Companies are embracing the digital transition in order to simplify their work operations as a result of technological advancements. Companies no longer have to pressure their staff with an increasing workload that decreases their productivity thanks to technological advancements, especially in the AML/KYC industry.
Why is Remote Identity Authentication Crucial?
Companies are increasingly turning to digital services, regardless of their industry. They are utilizing digital infrastructures to link consumers with what they require, from travel and banking to retail and healthcare. Several firms, however, continue to conduct identification checks using manual techniques.
Post COVID-19 Landscape
In the post-corona future, traditional methods of consumer identity theft protection will no longer suffice. Digital ID authentication not only speeds up the client onboarding procedure but also removes access hurdles such as territorial limits. Despite the fact that this method of verification has various advantages, it still is faced with some challenges. Even if bank accounts are registered for and created online, the question arises as to how companies verify their clients’ identities when large-scale financial scams are revealed on a daily basis?
Some Important Questions to Address for Businesses
As more companies go online, fraudsters get access to a plethora of data that they may use to commit fraud, such as making bogus insurance claims and stealing tax refunds. This leads to another major question: how can companies improve the security of their ID verification systems without jeopardizing regulatory compliance or consumer convenience?
The Growth of ID Authentication Industry
Nowadays, scammers exist in every business. Every industry, in some form or another, will have to deal with criminals, and they should be well prepared. For safe and efficient business operations, an online ID document verification is a critical aspect that every sector must adopt to conduct the client onboarding process. The digital wallet sector is increasing at a rate of about 16 percent per year, and predictions suggest that by 2025, online payment transactions might total USD 10 million.
With the unprecedented growth of this industry, it’s more important than ever for financial institutions to precisely identify their client base in order to eliminate fraudsters. Companies may use digital ID verification technologies to improve the speed, security, and validity of their client identification process during onboarding. Furthermore, CDD which is also known as Customer Due Diligence procedures must be adhered to. These include ongoing transaction monitoring and background criminal checks which are only possible with ID verification systems.
Some Advantages of Online Verification of Identity
Several financial firms had partially computerized their processes before the COVID-19 outbreak came ashore and shook the world to its core. A client may, for instance, begin the processing of a loan application online and then complete it by physically visiting a bank and presenting their ID cards as proof. Banking services and related institutions, on the other hand, that want to keep their customers have grasped the value of online client onboarding. They will be able to shift to the post COVID-19 world faster if they spend more on global ID verification services.
The dependable digital ID and biometric verification systems provide a number of appealing benefits, some of which are stated below:
- Reduce the risk of human-made mistakes.
- Enhance client experience.
- Save time and costs.
- Detection of questionable transactions and users.
- AML/KYC and related regulatory compliance.