Alternatives to the old-fashioned methods of the past, such as manual labor, are no longer acceptable in today’s society. Organizations use identity verification nowadays to check the legitimacy of clients and maintain legal standing. Identity verification guarantees that clients providing KYC and AML compliance information are providing accurate information about themselves.
Most companies now accept remote or online registrations, making it crucial to verify the identification of customers transacting with them online. Legitimately, laws and rules make it imperative to have a firm grasp on the identities of all parties involved in every business transaction. This is so because it aids in the prevention of fraud and satisfies regulatory mandates.
Businesses like online casino sites that casinoreviewers.com ranks with reliable identity and age verification systems can provide customers with a pleasant buying or joining process. Consumers expect immediate gratification from the companies they patronize and are quick to give up on procedures that take too long or are too intricate. People recognize the need for safety measures but resent being forced to wait longer than required.
Not too long ago, identity verification could only be obtained through laborious, time-consuming, and unsuitable for the modern online economy manual processes. As a result of plug-in APIs, firms can expand rapidly and seize more opportunities by outsourcing non-core services, such as establishing a user’s identification.
This service is a new market since it addresses a specific pain point in the value chain and provides practical answers.
Here’s a great illustration of how IDaaS is boosting the digital economy everywhere:
Why Identity Verification As a Service Is Necessary
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Demand for identity verification as a service skyrocketed as technology advanced and more transactions took place online. Unfortunately, the demand was first met with an inadequate supply, which became particularly problematic as people grew increasingly impatient. Many people appreciate and even embrace the importance of security, but they are put off by the cumbersome methods that have been the norm until recently.
In the past, verifying someone’s identity required time-consuming and error-prone human procedures that paled in comparison to today’s cutting-edge technology. Companies like that were able to rise to the challenge and eventually become the solution.
Increasing from $8 billion in 2021 to $17.7 billion by 2026 is the predicted growth rate for the identity verification market, as reported by an international news wire. An annual growth rate of 17.1% is quite remarkable.
Uses of Identity Verification
Research and actual experiences show that identity verification is required or strongly recommended at several points along the consumer journey. Customer journey touchpoints include account creation at the outset and transaction attempts mid-journey. Account opening procedures should consist of customer identity verification steps. This is because it is preferable to cope with an illegal behavior’s consequences and legal ramifications rather than to have detected and prevented it before it ever begins.
When a customer makes significant changes to their account, it’s a good idea to conduct identity verification as they move through the customer journey. It’s possible to modify such settings as your password, security questions, and physical location. Even though these are standard account management procedures, they may leave the customer’s account open to unwanted hacking and takeover. It’s essential to confirm the customer’s identity before making any modifications.
The steps taken to verify one’s identity should be set up as a sequence of flag-raising events. For instance, if there is a massive withdrawal from an account or repeated unsuccessful attempts to access the report.
Identity Verification Types
Today, organizations can choose from various identity verification methods and data sources. The following are some of them:
Electronic Identity Verification (eIDV)
Electronic Identity Verification (eIDV) is a method of checking someone’s credentials through the internet. The process is widely used in digital identity verification. The customer’s date of birth, name, address, and other personal information are used to determine this kind. The procedure concludes by comparing the inputted data to several consumer databases. Credit reporting companies, government websites, and government databases are all included here. The process ends with determining whether or not the person is who they say they are.
A valid ID can be checked using this technique. Using AI to parse identity documents for relevant information is one of the most cutting-edge types of verification for corporations and startups. After that, it tests to see if the data matches other global document types. For instance, it compares the customer’s driver’s license’s specific security features to the universally accepted codes and designs for valid government driver’s licenses. The AI will provide proof of the document’s authenticity if a match is found.
Knowledge-Based Authentication (KBA)
For Knowledge-Based Authentication, private information about an individual is used to verify the identification of the person giving that information.
On the other hand, it has evolved into a KBA that is more responsive to inquiries based on constantly changing information.
Our phones have become so integrated into our daily lives that they often feel like an extra limb. As a result, Mobil ID uses a technique very similar to eIDV to validate IDs using data collected from Mobile Network Operators (MNOs). Names, physical addresses, email addresses, and phone numbers must all be confirmed. These pieces of information form a powerful trove of personal identification verification.
What’s the Ideal Identity Verification Service for Your Business?
Which identity verification solution is ideal for your company will depend on its specific industry. Before making this option, you must understand how each approach performs and what they rely on. When verifying a system, the information requirements for each technique are vastly different.
Remember that a no-code compliance technology like vForms can significantly simplify the procedure.
What variables should be considered while evaluating risk? If there are any rules or regulations, what are they? In your field, what kind of identity documentation is required? How can the identification service handle the anticipated growth, domestic or international?
In today’s corporate world, providing identity verification as a service is crucial, both as a standalone operation and as a means of assisting other enterprises. The fate of your company may rest on your decision of which identity verification service to use. This affects any company operating in the digital realm, including those with mobile apps.