What Is Electronic Identity Verification?

We are living in a world where online transactions are occurring digitally, and electronic identity verification (EIDV) has become an essential cog in financial services.

To support customers and their growing use of digital services, companies are securing privacy information and transaction processes with trusted technologies, such as digital identity verification.

A recent report has found that when businesses increase access to digital services and transactions for customers, digital identity verification can unlock economic value equivalent to 3-13% of GDP.

Providing security so customer information is protected should be commonplace for UK businesses. However, unsettling statistics suggest the UK was the highest-ranking nation in the EU for customer money lost online to identity fraud in 2020.

Plus, an estimated £376.5 million of internet and e-commerce fraud occurred on bank cards in the UK during this period. As such, electronic identity verification can keep data safe, prevent fraud, and streamline processes.

Contents

• How does electronic identity verification work?
• Electronic identity verification in practice.
• Why do businesses need electronic identity verification?
• How does Interpass identity verification service protect businesses?

How Does Electronic Identity Verification Work?

Electronic identity verification or EIDV is the process of confirming a person’s identity through a synthesis of methods, such as an assessment of personal information provided and digital database analysis.

At the beginning of EIDV, customers provide details of their identity, including name, date of birth and address. Once this is supplied, data is checked against an individual’s electronic footprint.

During this procedure, if a customer’s details are a partial match or not match at all, this is flagged as there is not enough information to confirm that person’s identity.

As you would expect, businesses today understand the increased security and potential of this technology, with 91% of businesses worldwide in 2023 planning to increase their electronic identity verification software spending within the next 3 years.

Electronic Identity Verification In Practice

During digital identity verification, the focus is on matching an individual’s information that has been provided with relevant databases to synthesise a match between the two.

Here is a summary of the key elements involved:

• Personal data and document verification: documents such as driving licences, birth certificates, and passports are initially sourced.
• Appropriate public and private databases are consulted; these enable verification of credit data, vehicle data or police records.
• Additional data sources are consulted: this includes change of address, property ownership and government data, amongst others.

Why Do Businesses Need Electronic Identity Verification?

Trust in systems is the golden standard both customers and businesses are looking for. Completing electronic identity verification checks requires a certain level of assurance, for companies requiring checks and for customers who need to proceed with specific transactions.

Even though there is clearly a cost associated with digital identity verification, there’s no doubt that not using this technology is far more expensive for businesses - financially, and in terms of regulatory requirements.

The majority of businesses, particularly in the financial services, should want to actively maintain alignment with legal requirements, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) obligations. Staying oriented with regulatory requirements enables companies to prevent fraud, chargebacks and false identity claims.

Moreover, with 45% of all UK bank-reported fraud actually the result of ID fraud, most of which originates online, there is a pressing need to secure electronic identification processes for all invested parties, particularly customers.

How Do Interpass Identity Verification Services Protect Businesses?

As cyber crime surges worldwide, it’s vital that businesses take steps to protect against potential fraudulent attacks. An identity verification solution that proves customers are who they say they are is invaluable for companies so they can trade safely and maintain high customer satisfaction levels.

In reality, the effects of stolen identities are far-reaching. Data from 2022 shows that over £1.2 billion was stolen worldwide from authorised and non-authorised fraud. Undoubtedly, companies need to check that individuals are who they claim without incurring exponential costs and adding obstacles to the process.

With this in mind, the Interbacs Interpass solution enables you to seamlessly check customer information without adding extra complexity and time at checkout. In addition, our service provides a comprehensive overview of the financial position of customers by estimating customer income and credit balances.

Delivering a holistic view, this can help both businesses to manage trusted relationships with customers and support customers in a clearer understanding of their financial situation.

Learn More About Electronic Identity Verification

It’s safe to say that businesses and customers in our current economic environment are looking for efficient systems that ensure information privacy.

So you can achieve these goals, our digital identity verification tool helps check customer identity, providing more certainty in terms of verification methods.

Enabling businesses with electronic identification solutions without adding unnecessary hurdles, our software Interpass allows businesses to evaluate customer information without extending the checkout process.

Discover how Interpass can transform the security of your organisation through our insights, or book a free demo with our friendly expert team today.