In this age of digitization, where businesses utilize advanced technology, crimes grow substantially with a surge in document forgery. It is difficult to spot this due to the highly sophisticated and technical forgery techniques employed there. It facilitates the criminal laundering of illicit transactions through legal payments. Other digital security requirements such as ‘Know Your Customer’ (KYC) and ‘Anti Money Laundering’ (AML) compliance demand fully automated electronic solutions such as electronic verification services (EVS).
This digital era has replaced manual verification methods with EVS due to its fast transactions, hassle-free onboarding, and enhanced customer experience. Electronic verification methods leverage artificial intelligence (AI), machine learning (ML), optical character recognition (OCR), biometrics, and other automated techniques to provide secure and robust solutions.
Why Do Businesses Use Electronic Identity Verification (EIDV) Services?
Electronic ID verification allows businesses to comply with KYC and AML regulations, which are designed to save organizations from every kind of financial crime and spoofing attack. Additionally, it allows organizations to comply with counter-financial terrorism regulations. Moreover, businesses use electronic verification methods to have successful Customer due diligence measures (CDD), which allows them to reach clients’ risk profiles while onboarding. Electronic identity verification service providers facilitate organizations to tackle potential risks, financial sanctions, penalties, reputational loss, and other onboarding crimes. Companies prioritize electronic identification methods over manual processes for the following core benefits;
- Fraud Prevention
Many companies employ electronic customer verification methods to identify the authenticity of clients to be on board. It facilitates risk assessment and ID assurance. It is helpful in the reduction of financial fraud and identity theft as organizations have authentic customers onboard.
- KYC and AML Compliance
Business industries must comply with AML and KYC regulatory obligations designed to have legal security measures. If an organization fails to have this compliance, it may suffer severe consequences such as heavy fines and reputational damage or may be blocked entirely for years by the government.
- Enhanced Customer Experience
EIDV allows customers to get their identity verified while sitting at home. It allows swift and automated remote identification methods. It reduces the client’s friction to go onsite and get themselves verified, enhancing the customer’s experience. Thus, the EIDV service attracts more customers to an organization. In banking, Clients need to escape the hassles of meeting in person to authenticate identities and open new accounts. Additionally, it enables customers to onboard and create accounts remotely.
- Low Error Rate
Automated AI and ML-based solutions are used in electronic ID verification processes, facilitating organizations with reduced errors. It enables businesses to have authentic clients after executing reliable verification techniques. It protects companies from the risk of criminals being onboard.
- Cost Saving
Digital solutions have replaced hours of manual work with seconds. It facilitates organizations to reduce the requirement of multiple employees for verification processes. Thus, it is both cost and time-effective. Moreover, clients get rid of travel expenses as they are facilitated with an online electronic identity verification service.
- Legal Support
Global regulations backing EIDV services include the EU’s AML Directives and the US Bank Secrecy Act. However, the use of online EIDV is also encouraged by the Financial Action Task Force to have business securities and KYC compliance.
- Business Development
EIDV solutions facilitate hassle-free remote experiences for customers. It enhances company revenue with client satisfaction. Moreover, it builds trust between the clients and the organization which leads to definite business growth and success. It also provides a company with insight into the onboarding procedure in electronic form.
How Is EIDV Better Than Manual Verification?
The proceeds of manual verification are outdated now because of their lengthy onboarding. A manual process is highly time-consuming as several employees are required to have verified customers. There is also more risk of verification errors which may lead to heavy complexities for companies. Manual methods are frictional for both clients and the organization; automated electronic verification checks facilitate an organization to identify an authorized and authentic client in a few seconds, also, clients are out of friction and get themselves verified online. The EIDV process is a priority by firms due to its automated, quick, and accurate solutions. Moreover, companies are no longer subject to lengthy onboarding procedures with the help of EIDV.
Final Words
Electronic verification services facilitate organizations with hassle-free, frictionless, quick, and efficient customer identity verification. It makes business secure by having fair clients in business relationships. EIDV processes are successful measures of KYC and AML compliance and secure the organization from any future risk. Moreover, it enhances customer satisfaction, automatically leading to business growth and success. It enables organizations to meet this digital era of technological developments.
