An ever-increasing number of people become vulnerable to identity theft every year. Institutions dealing with money, investment funds, and other assets like real estate or artwork must implement e-IDV processes very seriously. However, an increasing number of accounting firms are going digital by developing websites for customers accessible through mobile devices.
They need to check the identities of their online consumers to be in conformity with AML rules. Electronic identity verification can help businesses save time and money by replacing labor-intensive, error-prone manual processes. Secure and efficient ID authentication is one of the most reliable methods of detecting clients using false identities.
A Short Overview of Electronic Verification Systems
Electronic verification systems validate a person’s identity remotely through digital means. However, it is the initial step in the overall eKYC procedure, which stands for electronic KYC. Moreover, there are two significant steps of the e-IDV process including;
Electronic verification systems software checks the legitimacy of a current photo of an individual’s identity by comparing it to the original ID card image. Moreover, it also verifies the data in the document, such as the names and birth dates of the individuals.
The information about each customer is cross-referenced with numerous watchlists, such as government databases, credit bureaus, utility companies, adverse media, and more. However, the objective is to obtain extra information and check for bad customer feedback to avoid potential dangers. When electronic identification is used, this process just takes a few minutes.
Verifying an individual’s identity with documents necessitates their actual presence and introduces opportunities for human error and paperwork. Given their convenience, speed, and efficiency, an e-IDV process is increasingly preferred by both consumers and enterprises.
In What Ways Can e-IDV Benefit Businesses in 2023?
Several advantages for enterprises may be gained by adopting an e-IDV process. It paves the way for financial institutions to meet AML and KYC requirements in a fully digital setting. This allows businesses to cater to their clients where they are and improve the overall user experience.
Beyond this, implementing electronic verification systems can have a major effect on your business processes:
Strengthen Fraud Prevention Measures
An e-IDV process is helpful for several reasons; one is its potential to reduce fraudulent activity and enhance risk management. Online transactions can gain trust between businesses and customers if digital identity verification is used. So, it helps stop things like account takeovers, ID theft, and money laundering. Fraud detection and remediation expenses can be reduced, reducing the threat of fraud to enterprises.
Faster Processing Time
When workers spend too much time manually checking papers or IDs, they increase the risk that a fraudster will gain access. A similarly exhausted worker may unlawfully refuse service to a valid consumer. Thus, the e-IDV process reduces the risk of human intervention and restricts scammers from breaching financial data.
Strengthening Regulatory Compliance Requirements
Due to the automation made possible by the eIDV process, fraud and compliance teams may grow without incurring additional expenses for manpower. Companies might use automated e-IDV for most of their verifications, bringing in a human worker for special occasions.
Streamlined Customer Onboarding
Electronic identity verification (e-IDV) saves the company time and effort manually verifying the customer’s identity during onboarding. It allows firms to gain customer trust by providing quick and efficient services. This way, companies can better combat fraud and improve their compliance requirements.
Scalability and Customization
An e-IDV process allows businesses to expand by quickly establishing the credibility of their customers. In 2023, businesses will have to find a way to authenticate the individuality of many clients in a short amount of time. Furthermore, enterprises may tailor e-IDV to their individual requirements by including features like multi-factor authentication, bespoke processes, and varying verification degrees.
Why Electronic Verification Systems are Go-To Solution for Businesses?
The adoption and widespread utilization of an e-IDV process in the banking and insurance sectors are both on the rise. If firms use this technology, they will be able to speed up the verification process without compromising regulatory compliance. More clients will be added to a company’s roster as a consequence.