Why Identity Verification Needs to Advance in FI’s
The Modern Economy's Evolution of Identity Verification
Identity verification has progressed significantly in recent years as it evolves in tandem with the modern economy. Identity verification is crucial in establishing confidence between organizations and their clients, from loan applications to creating bank accounts, cryptocurrency trading, and more.
Today, identity verification is a must in almost all operations, both online and offline. It's easy to underestimate the importance of identity verification in our daily encounters, especially with blue ocean prospects on the horizon as technology, risks, and threats continue to grow.
Here are the top 8 reasons financial institutions need to evolve with identity verification as we continue to set our sights on new prospects:
Impersonation used to be done by tangible means, such as a stolen wallet or identification card, before the widespread adoption of technology and the digital lifestyle. As a result, the most common unique identifiers at the time were name, address, date of birth, and social security number.
With the rise of digital fraud, identity theft now necessitates a more complex strategy to be effective. To avoid this, data networks are becoming more robust, with unique IDs for credit data, email, phone numbers, government-issued ID numbers, and other information now included.
The Progress of Biometrics
Biometrics has been a buzzword in the identity verification sector since the first state-wide automated palmprint database was established in 2004 and Apple began adding fingerprint sensors in smartphones in 2013. The most recent advancement in identity verification, allows people to be verified using geolocation, fingerprints, or facial recognition.
It should come as no surprise that forward-thinking firms are eager to adopt this function as part of their onboarding services, given its unrivaled level of protection when it comes to reducing identity theft.
Identity Theft Is on the Rise
There is a persistent fear of fraud and identity risk as data breaches and cyberattacks continue to climb year after year. Customers need to be able to trust that the companies with whom they do business are protecting their personal identifiable information (PII). Financial organizations are 300 times more likely to be targeted than other institutions.
Identity Verification With a Customer-centric Approach
Consumers are no longer limited to the services offered in their neighborhoods, thanks to the emergence of digital banks and financial services. Consumers can afford to be selective as they grow more security-conscious and look for smoother onboarding processes with greater protection since there is more competition and options to choose from.
Financial institutions are beginning to embrace their identity verification process to implement a more consumer-centric strategy, which was previously considered as a pain point in the customer experience. This can lead to positive outcomes, such as reduced friction and higher security, as well as improved customer connections.
Abandonment of Digital Account Formation
According to Deloitte's latest research, at least 38% of consumers abandon the onboarding process, frequently due to irritation with the sheer volume of interactions and documentation needed.
Financial institutions should strive to employ passive and active security features to help promote frictionless and secure onboarding in order to strike a much-needed balance between recruiting, maintaining, and increasing consumers.
Multi-layered Approach and Reliable Data Sources
Multi-factor authentication is a layered defense that makes unauthorized access to accounts, data, and devices more difficult. This necessitates the capacity for financial institutions to access a wide range of data sources that are rapid, trustworthy, and accurate.
Identity verification, as the most critical aspect in regulatory compliance and risk reduction, is only as reliable as the data sources it relies on.
Increases in Digital Growth Are Expected to Continue
With over 14 billion active mobile devices on the planet, more people than ever have the opportunity to participate in the digital economy. As digital services improve and spread, digital identities will become increasingly important in establishing fairness, openness, and trust. They will, however, need to be established before being granted access.
More Users Necessitates More Efficient Procedures
Although aspects of identification and verification are always changing, financial institutions must consider simplifying their operations to stay current. Financial institutions will be able to scale their operations properly while reducing rising threats and hazards and maintaining compliant with evolving regulations and compliance requirements with this level of responsiveness.
With One-stop Verification Solutions, You Can Save Time and Money
Financial institutions must use verification services that will meet their business demands now and in the future as technology advances, rules change, and customers want better service. Organizations can adopt a customizable and strategic approach to identity verification by employing technologies to automate efficiency, which will help cut costs over time and provide a better experience for consumers. We provide a one-stop verification solution for financial institutions. Our AI analyzes all the relevant data and provides you with a written assessment based on the individual case.
With Your Identity Verification Solution, Put Your Best Foot Forward
Identity verification technology holds the key to assisting financial institutions in efficiently and securely onboarding consumers. Organizations may stay compliant and onboard fast while decreasing fraud by utilizing the most up-to-date technology available today. As a result of this foresight, customers will be more loyal as a result of a positive first impression that makes them feel comfortable and secure.