Companies use identity verification to ensure that users and customers provide information associated with the identity of a real person. Online transactions represent a growing number of businesses, so knowing who you are doing business with is critical.
Identity verification mitigates the risk of fraud and helps entities required to comply with it. Effective identity verification solutions also enable businesses to offer an easy-to-use shopping or integration experience.
Not long ago, identity verification was only possible through slow, error-prone manual processes and not suitable for today’s economy.
With API plug-ins, identity verification enables companies to grow faster and achieve more business opportunities by outsourcing core functions.
6 Benefits Of An Efficient Identity Verification Process
Onboarding is the first point of contact between the company and its future customer. Organizations that offer digital identification to facilitate the entry of new users should consider measures to make it safer and agile.
However, the various dimensions of identifying and combating fraud need to work harmoniously.
An example of positive action in these cases is the validation of information through facial recognition and digitalization of documents. All this should be done online and in real-time. In a few seconds, the information is returned, allowing the best decision to be taken.
This process also reduces some possible friction in the customer’s journey, as alerts are activated only if some high risk is detected.
See the main benefits of having an efficient identity verification process:
1. Avoid Fraud
Registering new customers online is a daily challenge for companies.
That’s because new techniques of fraud, data theft, and misrepresentation are created all the time. It thus makes it more difficult for companies to stop crimes such as money laundering and corruption.
With the digital onboarding system, these practices become almost impossible. The alleged client will not be able to validate his false identity to perform his registration.
2. Streamline User Onboarding
Nobody wants to waste more time filling out long forms and forms nor waiting for days for a registration to be validated. In the case of essentially digital companies, this is a critical point since their business models always provide intelligent and agile processes.
According to Deloitte, 38% of customers consider the user experience as the most important criterion when choosing a digital bank.
When you invest in tools that recognize a person’s fingerprint or face, the job becomes much more practical. The average processing time drops to an average of seven seconds. Otherwise, if you are pragmatic and bureaucratic to the extreme, you could lose the customer to the competitor.
3. Increase Accuracy In Customer Recognition
Your company will only be accurate in recognizing the customer if it uses digital identity verification methods. Otherwise, you will never be completely sure of the person’s identity.
Quality and legibility are also assessed by obtaining complementary data (background check) to support decision-making. Thus, the identity verification done in digital mode is fast, effective, and safe, and the accuracy in the analyzed images is high.
4. Comply With Laws And Regulations
Having a reliable identity verification tool ensures you comply with the general data protection law. This means gaining time, security, and customer experience and avoiding loss of credibility and money. Failure to comply with the law can result in very high fines.
5. Enhance Collaboration
It is especially important for companies with a wide service sector whose registration and data collection processes are digital.
Suppose a customer starts to register on the internet, interrupts the filling, and then needs to resume by phone.
Who held the record? Once digitized, the identity verification process can be accessed by everyone. Also, this mechanism speeds up the sharing of information with the country’s credit protection agencies.
6. Reduce Costs
This is a benefit inherent in any process automation. The acquisition of a system means more efficiency in executing the work and quality gain since the error rate falls.
When you automate operational processes, you have the human capital to devote to strategic issues and core business. This invariably results in cost savings.
Adopting identity digitization is the ideal solution for KYC “know your customer” processes, customer onboarding, and document validation.
In just a few seconds, you have the information verified, which allows you to make the best decisions based on comprehensive and rapid analysis, as only artificial intelligence can achieve.
Do you want to implement identity verification in your business? We hope this post will help you learn a little about it.
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