How Identity Verification Systems Enable New Economies

by Jason Hill

Businesses are now using identity verification to ensure that consumers provide vital information linked to a real person’s identity. With the rise in remote transactions and sign-ups representing more enterprises, knowing who you are transacting with is a crucial requirement. Identity verification plays the role of mitigating the high risks of fraud while assisting obliged entities to comply with the prominent Anti-Money Laundering Department. Effective ID verification systems also allow firms to deliver excellent user-experiences on purchases. Consumers are then accustomed to readily available access to goods as well as services. They will definitely abandon slower processes that seem cumbersome. Although many people understand the demand for security, they do not really want to be slowed down. That is where identity verification systems come in.

The Pain Point

Not long ago, the application of identity verification was attainable via manual processes, which seemed slow, by the way. The same systems were prone to errors and unsuitable for the online economy.

Today, with the plug-ins, adding a trusted identity service with a single connection allows businesses to successfully grow while capturing more opportunities by outsourcing the core functions.

The service, which focuses on one reliable aspect of the consumer value chain, represents a new industry altogether.

That is why experts in the fraternity state that B2C companies are facing the challenge of creating and maintaining a seamless identity verification experience for the transactions. This is a task that needs significant investment and expertise.

As opposed to acquiring the required data, developing the technology as well as operating fundamental security and protection activities on a daily basis, firms can use ID verification as a service provider.

Identity Verification Use Cases

Every customer life cycle has an important phase. These stages vary immensely, and identification is always required. The initial time to run checks is often during the onboarding process when a customer is new to the said account. This is the right time for verification since it is also the first time to perform due diligence.

For that reason, it is important to prevent illegal activities prior to their occurrence, instead of dealing with the consequences later on.

An additional essential aspect and time to conduct verification are when a change is made to the account, such as a password reset or changes in addresses.

The account management procedures are often a vulnerable point for the account’s integrity since unwanted changes can quickly lead to a takeover.

Consequently, before allowing these substantial changes, making sure that the actual account holder is the person requesting the change plays a role in preventing losses while reassuring the customer.

Verification may also come in handy when an account transaction triggers a red flag. This could be a large transaction amount. It could also be a risk factor that quickly changes the risk assessment and needs further due diligence, coupled with additional information.

Final Thoughts

Over and above, when ID verification is an important service, the whole value comes from the maximization of information flexibility and not really relying on limited views. With a single connection, a viable identity verification service opens up a huge world of various opportunities. It may also assist in regulatory compliance while helping to reduce the chances of fraud in the long run.

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