Identity verification is a significant concern in the business, and with the development of electronic components, manual systems are moving towards automation. Virtual opportunities have created a smooth transition in the fintech world, but a concern arises when businesses are required to deal with finance. Due to an increase in financial crimes, there is a number of companies that fall victim to cyber-attacks.
From the report of the previous year, it was recorded that India ranked first amid the countries that faced Identity theft cases. The loss was recorded, estimating 27.2 million adults were victims of ID thefts, approximately 13.5 million in the US and 3 million in Japan.
The analytical rate was high and required an instant solution. However, the integration of identity checks has been handling the pain point effectively. Read the article to explore how the automated version has conquered the traditional system.
Understand the Concept of e-IDV
Electronic identity verification is one of the essential step in the Know Your Customer method that is a successful approach to combat risk threats and fraudulent activities. The KYC works by validating the consumer’s identity and conducting a verification check on the entity’s professional and personal background to ensure that the body is not involved in any money laundering or terrorist financing crime.
The identity verification step from the KYC approach has evolved with the development of electronic identification. The e-IDV works by using sophisticated tools for scanning and analysing loads of data sets to validate the entity and establish a wise decision with correspondence to the verification conducted.
The e-IDV integration in the structure has made the system quick and efficient, enabling the financial sector to validate its consumers in real-time. It also ensures the complaince with KYC regulations and mitigates financial fraud.
Quick Insights to Identification Checks
The significance of validating identities has always been the top priority of every company. The identification check ensures the legitimacy of the new entity before the company commences working with it. Validating identity will lead the business to combat implicit actions damaging the company’s well-being.
The identification checks could be a boring and long process for businesses if it is adopted manually. However, with the evolution of technology, the integration of artificial intelligence has swapped the manual system to an automated one. Electronic identity verification works more efficiently by providing higher accuracy results than the traditional one.
How does an Electronic Verification Service Provider Work?
The digital verification providers work by effectively gathering and analysing identity profiles. They drive results from advanced risk assessment solutions and authenticate user data with government, private and telco databases. The e-verification works in banking, insurance, government services and other emerging industries with the same pattern and advanced AI software. Listed below is the quick 4-step electronic verification service:
- Registering consumer’s data by collecting their personal and professional data.
- Face screening is done by conducting a liveness test to detect the identity.
- Double-check the records against official government databases.
- Decision-making regarding user onboarding completes the final step of electronic verification.
Significance of Online Identity Verification Solutions
Online digital identity verification aims to create a long-term relationship with consumers. It is the first step to building trust by ensuring data security. However, it is now a necessity in order to mitigate identity theft. Below are the top 5 reasons why the online identity verification solution matters:
- The digital identity verification process ensures regulatory compliance and strictly adheres to KYC laws.
- The online process works effectively with the complicated risk factors and reduces the chances of financial fraud in the first place.
- It works by increasing operational efficiency with automated identity verification tools without sacrificing security measures.
- Rapid and authentic online verification establishes an easy path for consumers, resulting in long-term relationship development.
- Ensuring data security leads to consumers’ trust that they are likely to come back and rely confidently on the company’s verification service.
In a Nutshell
The electronic verification system has the ability to revolutionize automated businesses with the enhancement of patron experience. The eidv process is working effectively in identity spoofing and financial fraud detection while achieving regulatory compliance. Moreover, the identification checks provide a seamless onboarding experience with combating real-time identity theft. One of the primary significances of e-IDV is that the AI-powered software is reliable, efficient and provides accurate up to date information.
