Electronic identity verification is an essential step to comply with Know Your Customer and anti-money laundering regulations. Digital advancement has generated the demand for electronic ID verification; businesses must install this solution in their company. These verifications ensure safe transactions and secure customers’ bank accounts from scammers. Prioritizing secretiveness is the customers’ fundamental right; companies that fulfil them build the customer’s trust. The cost of cybercrime was about 5.7 trillion us dollars between 2017 and 2028. This ratio is continuously rising and is expected to reach 13.82 trillion dollars by 2028. This increasing number has raised the E-idv process’s importance in mitigating these crimes.
What is Electronic Identity Verification?
This verification is used to verify that the person is authentic and is the same as he claims to be. This verification is done online; no physical presence of the user is required. This verification is mandatory for financial institutions because they are at a greater risk of cybercrime. Data breaches and fraud are common in banks, insurance companies, and investment firms.
Difference Between Manual and Electronic Identity Verification
Manual verification requires the clients to submit legal documents by hand, while in e-check verification, physical copies are not necessary. Here, we will discuss the main difference between these types of assurance.
Electronic Identity Verification
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Accurate
These solutions are exact because they leave no chance of error; these AI models easily segregate real and fake documents, so companies can rely entirely on them to check the customer’s credibility.
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Appropriate
Customers can register from anywhere worldwide; these verifications are free from timescales and places. Clients do not have to wait for working days and hours; they can get verified from their homes.
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Handle Large Data
These solutions are smooth while verifying large-volume data; every kind of data can be handled by it with no difficulty.
Manual Identity Verification
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Inaccurate
These verifications included human error because they are prone to distractions and tiredness. False assurance is possible if the proof is performed by a person who could be more expert. Employees can even leak the data of the company to an irrelevant person.
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Inappropriate
Manual verifications can only be performed on the premises of the office. Customers in rural areas need access to financial institutions, and moving to a city for verification was demanding.
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Difficult to Manage Large Data
It is a very hectic process for humans to collect, gather, and manage data. Onboarding customers was a time-consuming approach, as it involved many steps. The registration of the clients was confined to only business hours timings, which made it more difficult for some customers. As the company’s size increases, it becomes more challenging for the employees to manage more data.
Which Things are Required for Identity Verification?
The verification process changes with the structure and demands of the business. It depends upon the industry, risk tolerance and type of company customers. The following documents are most commonly required for almost every industry.
- Name
- Address
- Phone Number
- Identity Card Number
- Driving License
- Bank Statement
- Bills
In Which Industry Is Electronic Identity Verification Required?
- Financial Institutions must implement these solutions for customer onboarding, monitoring and other financial activities. They can mitigate the risk of fraudulent activities through these e-check verification.
- The E-commerce industry has some restrictions regarding the age of the customers; minors are not allowed access to certain products. The government has imposed regulations regarding minor reach to mature content websites. These electronic identity verifications have proved to be very helpful in following these regulations. Industries spend massive amounts on finding target customers; these e-check verifications help locate real customers.
- Companies can get complete data of the customers containing their preferences and choices. In this way, miscellaneous expenditures of the company can be controlled through it.
- The health sector also uses electronic identity verification to register patients and staff. This step helps doctors get the patient’s complete medical history before treatment. This saves time and also makes the process more streamlined to treat the patients. The manual process was time-consuming; any delay could risk the patient’s life in the medical sector.
Conclusion
Safe online transactions, secure bank accounts, and prioritising privacy are customers’ fundamental rights achieved through electronic identity verification. This solution has shown wonders in almost every industry; a significant rise in revenue can be observed for businesses using it. E-idv even saves businesses from future losses associated with miscellaneous expenses. Companies can achieve customer satisfaction and a pleasant customer experience and build trust by providing safe and secure money transactions. Advanced risk assessment mitigates the probability of financial loss. eidv process has streamlined the activities of the businesses.
