Due to losses and difficulties businesses and customers face, identity document verification becomes crucial. Some companies still believe in face-to-face verification due to the high-risk factor, but this process is time-consuming. The customer has to wait in a long queue for their turn. This process is helpful when opening a bank account and taking a loan.
With the advancement of technology, the identity document verification process needs to shift online. Because manual document verification is not scalable and standardized, digital document verification finishes the process in seconds, making it error-free and removing geographical boundaries.
Identity Document Verification: The Need Of Organizations
When smartphones came out, they allowed people to connect to the world with the help of the internet. Now customers do online shopping, person-to-person payments, and everything else through mobiles. So, identity document verification has become essential to protect against cybercriminals and people wanting to commit identity theft. Online platforms facilitate digital ID document verification, which removes location barriers. The main reasons for doing identity document verification are given below:
Prevent Fraud And Data Breaches
With the advancement of technology, white-collar crime rates are also increasing. There has been a record-breaking amount of data breaches in financial institutions. To prevent fraud and identity theft, companies should implement digital ID verification with high-security measures because in-person ID verification is prone to human error and takes time.
Meet Regulatory Compliance With Identity Document Verification
A document verification system allows businesses to comply with legal regulations, know their customer (KYC), and anti-money laundering regulations. If legal authorities find that companies do not follow the rules, they can impose heavy fines and award jail time. It ruins the reputation of businesses and the customers’ trust.
Frictionless Customer Onboarding
Digital ID document verification helps save customers time and energy due to the load of paperwork involved in identity verification. And provides customers with a frictionless onboarding experience.
Benefits Of Identity Documents Verification
Identity document verification offers several benefits, which increase its popularity.
Quick Turnaround Time
Verification of identity documents offers a speedy response for both businesses and customers. Rather than physically submitting documents and waiting for them to be authenticated, online document verification speeds up the process and improves the customer experience.
Enhance Customer Experience
The consumer experience has become an exciting business opportunity. Customers today need a smooth, consumer-centric experience that breaks down all obstacles. Smooth onboarding and compliance with regulations improve the customer experience and boost trust.
Improves Business Reputation
Authentic identity kyc documents verification makes the customer believe that the business cares about the customer’s security and privacy, which enhances the customer experience. In the event of any inconvenience, it’s difficult and exhausting for customers to switch from one business to another.
Avoid Fraud And Money Laundering
Applying identity document verification avoids the risks of financial crimes and money laundering and saves businesses from financial losses. Companies use fingerprints or two-factor authentication for their customers’ ID verification. More online transactions mean more consumer data, which can be saved through identity document verification.
Methods For Digital ID Verification
There are different methods for online ID verification. Each method has its own requirements and works according to them.
Two Factor Authentication
This method requires two steps
- The first step is to enter your email id and password
- Next, the system asks for a unique code which has already been sent to the customer’s address. This step makes it impossible for hackers to steal data.
This process is generally known as KBA. The process requires personal information from the user to prove their identity. This process is used by websites whose services users want to access. The process has two types, dynamite and static.
One Time Password (OTP) Verification
It is a safe way for customer ID verification. The system sends an OTP to the customer’s email address or mobile number. It is a safe way because not everyone can access your account. And the OTP will not work once it’s used.
ID Document Verification
ID document authentication ensures the customer’s identity documents, such as their passport, CNIC, and license, are original or forged. The process uses identity checks to verify the originality of documents.
To Wrap Things Up
Identity document verification enables businesses to ensure the identity of customers and prevents identity theft and financial losses. Identity document verification ensures compliance with regulatory requirements and saves a business’s reputation.