Over the past decades, the financial sector including banks has progressed dramatically to satisfy the dynamic landscape whether it is technological advancements or customer demands. Although things have become easier and more convenient for the clients, cybercrimes such as account takeover, identity theft, data breaches have become widespread. While the shift towards digitization in the financial sector is intriguing but the responsible authorities and businesses are required to take steps in order to avoid cyberattacks and financial crimes.
The identity of individuals impacts the processes of banks such as credit card applications, account openings, and closing, during large transactions, etc. Therefore, banks need to employ advanced ID verification services that besides providing superior security services also ensure a great customer experience and also satisfy KYC/AML guidelines.
Methods of Identity Verification
Banks and the financial industry use different methods to verify identity which includes:
- Liveness Detection: It verifies the selfie by examining spoofing attacks including face masks, or photos of photos.
- ID Document Verification: It verifies that the identity document of an individual which includes a driver’s license, passport, or government-issued ID is legitimate.
- Biometric Verification: It uses the physical features of an individual to verify that they are the one who they acclaim to be.
- One-Time Passcode Verification: A code is sent to the individual via email or text message to validate an individual and ensure that the approved user is accessing the resource.
- Database Methods: It extracts applicants’ data from different sources such as social media and offline databases to validate their identity.
- Knowledge-Based Authentication: This is a type of verification that asks knowledge-based questions considering details present in the applicant’s personal credit file.
Benefits of Identity Verification Services
With the progress in technology, businesses have gone online and interaction with clients has become digital. Thus, banks and all financial sectors need robust ID verification services across all encounters whether it is high-risk transactions, account opening, or account recovery.
Users prefer those banks that have advanced biometric verification systems in place so that they may feel secure while they open their accounts. Thus, ID verification has proved a vital investment not only to prevent synthetic identity fraud and crimes but also due to the many many benefits they offer to banks and financial sectors which are mentioned below.
The technology has made businesses easier but at the same time, it has made them vulnerable to various criminal and fraudulent activities. The criminals have also revised their methodologies to commit crimes and gain illicit means. This is where the biometrics identity verification system comes to the rescue. Besides checking who the client is, the advanced verification solutions go a step further. They validate that the customer is genuine and not a threat to the entity by checking that the customer is actually the one who they claim they are. Furthermore, biometric identity verification systems are impossible to hack as compared to the conventional systems that use passwords and PINs which are more prone to get hacked. Therefore, biometric screening is the best choice for banks and all financial entities to keep criminals and fraudsters at a bay.
Improve User Experience
Clients are the asset of any business no matter it is a bank or e-commerce or whatever. Entities go for those solutions that are secure, faster, and transparent, ensuring a great customer experience. With digital identity authentication solutions, the customers are not required to visit banks and another sector physically and they can get themselves verified with a single click, no matter in whatever corner of the world they reside. Thus, a robust ID verification system is a great bet to enhance the user experience.
Drive Automation and Efficiency
Identity theft protection systems have just automated the operations of banks that would otherwise require manual input. They also reduce the chances of any human error and are proved to be fruitful and more accurate. Furthermore, such verification systems are robust and quick which increases the efficiency of online sectors while providing superior security services.
Advanced ID verification solutions help banks and other sectors validate an individual’s identity in real-time both virtually and in person. We can say that ID verification solutions have come as a ray of hope for the banks. They make account opening and client onboarding procedures a matter of minutes while ensuring great security and enhanced customer experience.