In this age of digitization, every business must comply with ‘Know Your Customer’ measures. Global internet access has been extended, and businesses from all over the world are using online channels. It is more complicated to identify criminals and fraudsters while onboarding. KYC compliance has improved onboarding processes by mitigating the risks of fraud and other financial terrorism. Now, customers deal worldwide, and scanned documents are stored in electronic databases. Electronic verification has enlightened this age of technologies by providing a successful solution to have clients onboard.
What is Electronic Verification of Documents?
Every business requires information from clients before onboarding. Different documents such as identity cards, driving licences, utility bills, educational certificates, etc are required to obtain a particular piece of information for KYC compliance. These documents are now collected online in the form of printed or scanned images. These documents are verified electronically with the help of digital means such as( OCR) Optical character recognition. OCRs can detect and extract information from documents to use and store in electronic databases.
Top Advantages of the Electronic Identity Verification (eIDV) Process
EIDV has revolutionised digital business by providing successful onboarding experiences. The following are the core benefits of electronic identity verification.
Fraud Prevention
EIDV service providers are a helping hand for businesses that have reduced the risk of frauds such as fake accounts, identity theft, and financial terrorism. It is a robust mechanism for the organisations to identify their clients before having them on board.
Enhanced KYC Compliance
Every business must know its customers beforehand. KYC compliance is essential for every business to fight the risk of money laundering, fabrication, unlawful transactions, and other cybercrimes. By using electronic verification assistance businesses ensure to have KYC measures. By collecting and verifying required documentation, the risk of deception, reputation harm, and fines is eliminated.
Secure User Registration and Onboard
By employing electronic document verification methods, businesses can verify the authenticity of their clients. It stops the risk of unauthorised access, artificial accounts, and criminals being onboard.
Reduced Operational Costs
Electronic verification allows automated processes. Companies do not need to hire multiple employees for manual verification. Digital solutions reduce expenses linked with manual checks, document processing, and fraud investigation. AI and ML models work more effectively as compared to the manual verification process.
Advance Technological Compliance
Automated EIDV process utilises advanced AI and Ml technology to perform actions accurately and quickly. Pretrained AI models are out of biases. Automatic processes have no risk of any negligence as a result of fatigue or workload. Automatic algorithm process verification to identify a client before establishing business relationships.
Top 4 Use Cases of Electronic Identity Verification Services
Following are the top 4 use cases of electronic identity verification technology.
The Financial Industry
Digital verification services are the primary requirements of the finance industry to protect from money launderers and financial frauds. Robust electronic document verification allows successful KYC compliances which allows to have only authentic customers on board. It allows screening of unauthorised clients. The financial industry particularly requires electronic identification before opening a new bank account or processing a loan application.
The Telecommunications Industry
Electronic verification plays a crucial role in the security of mobile services. Many fraudsters use illegal SIM cards and phone numbers to execute their illicit plans. EIDV helps the Telecom department to prevent unauthorised use of mobile services. It mitigates the risk of identity theft and SIM card fraud. It builds a kind of trust between the organisation and its clients.
The Healthcare Industry
Healthcare institutes are required to protect sensitive information about patients and medicine. By verifying patients’ identities electronically, hospitals ensure they have to deal with authentic individuals with real medical histories. It is a safety measure for health against data breaches. It allows the provision of medical services to an authorised person with a real identity.
The E-Commerce Sector
In the e-commerce sector, identity document verification is vital for preventing fraud and ensuring the security of online dealings. By proving the identities of customers during the enrollment or checkout process, e-commerce platforms have secured themselves from fraudulent activities, such as account seizures or fake accounts.
Conclusion
Electronic verification has encouraged this digital era to have successful onboarding experiences. Computerised solutions for digital validation have rescued businesses from any kind of data violation, identity swiping, and economic loss. Organisations must use electronic verification codes to comply with successful KYC measures to have genuine and approved clients onboard. EIDV has revolutionised every sector, such as telecommunication, health, travel, E-commerce, and banks with the use of advanced artificial intelligence technology. It provided a security measure for companies to prevent monetary loss.