Decreasing indemnity claims is no less important to businesses than attracting new clients and...
Identity Verification Services: Building Trust
Confirming that a customer’s identity precisely matches the information they’ve provided is no longer just a means of fraud prevention. Data breaches of all kinds can not only compromise the privacy and safety of individuals but also result in legal infringements and affect the entire future of an organisation. The key to combating such catastrophes can be found through identity verification services.
Contents
- Why Use Digital Identity Verification Services?
- What is Know Your Customer (KYC) Legislation?
- Anti-Money Laundering (AML) Regulations
- Building Consumer Trust
- A Premium Software Solution
Why Use Digital Identity Verification Services?
Digital verification services are a natural reaction to the ever-increasing use of digital in business. Prior to the online revolution, consumer-financial service relationships were usually conducted in-person.
An individual wanting to open a bank account or make a payment would have to visit the physical building owned by their chosen institution. Identity verification would involve providing proof through document verification, including paper identity documents, such as a passport, utility bill, or birth certificate.
Given that 80% of financial service organisations have undergone a breach that was likely related to authentication weaknesses, identity verification experience matters. With many consumers now conducting more online transactions, businesses need a robust digital service to protect themselves and their customers against identity fraud and comply with legal regulations.
What is Know Your Customer (KYC) Legislation?
Any business handling sensitive consumer data is subject to various pieces of legislation. In the UK, the Financial Action Task Force (FATF) was established to guard against the likes of money laundering, and protect consumer rights online.
KYC checks are a mandatory requirement for all financial institutions, who need to prove consumer identity, address, and income as standard. Some 65% of companies already deploy digital document verification, particularly in the financial sector.
Anti-Money Laundering (AML) Legislation
AML legislation demands businesses to verify consumer identification as a means of reducing laundered money, earned through illegal means. When depositing or transferring money into an account, consumers need to be screened and the legality of their earnings risk-assessed.
A failure to correctly manage this process can result in fines or even business closure. Our own Interpass software has been created with both Know Your Customer and Anti-Money Laundering Regulatory requirements in mind, and can further check consumer suitability for applications involving money lending. Discover more with our article on What Does Identity Verification Software do?
Building Consumer Trust
When it comes to evaluating the costs of failed identity verification, one study showed that financial services spend around $4 resolving every fraudulent dollar. A separate UK study found that application fraud from card ID theft cost organisations more than £10 million in a single year.
Whilst these figures are hugely significant, loss of business reputation can have even greater consequences. It’s a business’ responsibility to ensure that sufficient identity verification checks are conducted, and any lapse in procedure delivers a public message that a particular organisation is untrustworthy.
Since the digital revolution, consumers no longer have to rely on the contents of their nearest high street to conduct their financial affairs. Such a shift has greatly-increased competition, given the extra freedoms customers now enjoy when it comes to committing to a specific organisation. Providing a seamless customer experience is a more vital selling point for businesses than ever before, and those who fail to build trust through a rigorous customer onboarding process whilst conducting rigorous verification checks are far less likely to attract new, genuine customers.
A Premium Software Solution
A stringent digital solution is necessary for financial services to ensure compliance and build customer trust in the online age.
The Interpass solution is able to conduct identity verification in a fraction of the time it would take for a human to do the same, confirming both name and address by accessing a consummate range of databases, including credit history, and voting data.
Financial legitimacy can be verified through proven links between a customer’s ID, their address history, and their registered account, and loan suitability can be proven via thorough credit checking.
Discover the difference identity verification services can make to your own financial organisation through our insights, or book a free demo with our friendly team of experts today.