Criminals develop more complex methods to commit various frauds such as money laundering, fake IDs, and identity theft, in the form of illegal transactions and payment breaches. Organizations require an efficient ‘Know Your Customer’ (KYC) process to identify their clients. KYC enables financial sectors and businesses to access the depth of client profiles onboarding process to identify their legitimacy of identity and financial sources. Electronic identity verification is the digital solution to comply with KYC measures, that facilitate the process of user identification and protect businesses from complexities
How Does Electronic Identity Verification Ensure KYC Compliance?
Organizations must comply with KYC, it provides them an edge in case of any mishap such as any kind of legal action against them. With the help of EIDV, companies can verify the identity of customers in efficient ways. The cutting-edge technology helps to use digital solutions of artificial intelligence that allow automated, quick, and accurate results. It provides cross-match solutions over various cloud databases and verifies an individual’s legitimacy. Hence, it allows firms to have state-of-the-art technological compliance.
How Is Electronic IDV Better Than Manual IDV?
In the traditional verification process, multiple persons are required to identify various documents and perform a manual cross-match of the information provided. It takes a lot of time and energy. Despite hard work, humans are prone to errors due to fatigue or workload. In case of any minor ignorance, companies face heavy losses by having criminals onboard. But in online eidv, automated solutions process all the information the client provides. This process executes automated cross-matches over various databases and identifies the legitimacy of users’ identities. Digital verification may involve the following types;
- Identity Card Verification
Users have to upload a scanned image of a government-issued ID card or other identity documents. Digital OCR technology is employed in EIDV methods to extract information from particular sources. It identifies the legitimacy of information and stores it in digital form. In further processing, this information is matched with other data to identify its legitimacy. Automated solutions are there to process a large number of ID cards in a very short time. It enables users to get verified at a long distance and has enabled organizations to successfully comply with KYC.
- Document Verification
Many companies ask users to upload various documents for specific information such as IDs and licenses for individual names and other documents for address verification, these may include utility bills and tax slips, etc. Social security cards and bank statements are also used for various information used in electronic verification. These documents are processed by automated algorithms which provide efficient and fast results. Moreover, this information can be stored as an electronic record.
- Biometric Verification
Various kinds of physiological prints are required to have biometric verification. Individuals are asked to provide images or real-time selfies to have biometric facial recognition, often users are required to provide fingerprints. Biometric verification namely comes as follows.
- Selfie / Image
Many companies use facial scanners to have electronic verification of their clients. These scanners convert facial features into digital prints, which are stored in electronic databases and used in the further verification process of individual identity.
Many companies ask their clients to provide thumbprints that are used for electronic verification of identity. Automated checks are employed to process these prints and verify the identity of a person. Additionally, it provides hassle-free verification on the sides of consumers as well.
Core Benefits Of Employing Electronic Verification Process
Companies employ electronic identity verification processes to identify their customer’s identity. It enables them to have the following benefits.
- It enables organizations to have ‘Know Your Customers’ and ‘Anti Money Laundering’ compliance which protects them against any legal encounter.
- It facilitates firms with automated processing with the help of digital technology.
- EIDV solutions enhance customer experience by providing them with the facility of online identity verification.
- Electronic verification enables companies to have error-free and spontaneous results.
- It allows companies to have cloud-based storage which reduces the use of paper storage.
- It allows companies to verify a large number of individuals in short intervals.
- It provides a hassle-free, frictionless, and efficient onboarding experience
- It allows organizations to have security against identity theft and other financial crimes such as money laundering and illegal transactions.
Companies require KYC compliance to make themselves secure and to adhere to regulations. Electronic verification of identity is the best solution to have enhanced KYC measures. It provides a quick and excellent verification methodology to filter the legitimacy of individuals. Electronic verification enables firms to establish state-of-the-art with the use of AI and ML automated algorithms. Moreover, it provides multileveled security to avoid financial crimes.