Imagine a world where every business needs to identify millions of people and authenticate every transaction from their mobile device. In today’s increasingly connected world, we don’t know who we’re interacting with online.
Being able to prove your identity is essential - be it when you’re opening a new account, applying for a loan, a credit card or a mortgage. When there’s an issue with online identity verification, there’s growing distrust among users.
Millions of users have fallen victim to their personal data being misused.
While digital transformation garnered incredible benefits both for consumers and businesses, regulatory bodies did not stop to re-think the data privacy model and study the potential consequences and impact of collecting the exorbitant amount of data - until recently. Problems around data security and online identity verification snowballed before government entities stepped in and regulatory measures were adopted.
ID Verification Service with backed in privacy focus
In a democratic environment, the lack of data privacy and mounting problems with the way personal data is stored and recorded can cause havoc. The inability to protect and maintain data privacy will not just affect credit scores, but could threaten a business’ regular functions. One of the core problems, which Passbase wants to solve with the latest security and encryption standards.
The impact of data hijacking is far-fetched - nearly 50 million accounts on Facebook fell prey to a security breach, through which data was collected to try and influence the course of the 2016 U.S. presidential elections and the Brexit vote.
Relying on strong identity verification solutions gives users confidence about the identity of the person on the other side of the platform. Online ID verification is pitched to be the first step to gain and rebuild trust. Better yet, verifying a user’s correct identity is crucial when it comes to managing risk.
“The long-term opportunity such innovation presents is even bigger. Banks are already experts in vouching for people's identities, so if they were to figure out how to successfully digitize customer identification, this could help them secure a valued place, and relevance, in a modernizing economy,” a Business Insider report highlighted.
Various Components besides ID verifications
However, like most digital services, online ID verification isn’t an overnight fix. There’s a constant need to reimagine and modify the way identity verification solutions are provided to clients.
Be it online identity verification or receiving fast, secure access to their payments platform, most consumers don’t want delays. Users want processes to be quick, seamlessly fitting into their busy lives while ensuring they carry top security features to protect them from identity theft and fraud.
On the flipside, enterprises need to provide strong identity verification services, manage risk and adhere to strict anti-money laundering laws. This triggers a common problem for any business - what’s the best way to quickly verify a customer’s identity in a secure network, while still meeting all the stringent regulations and not making it unnecessarily difficult for customers?
ID verification with Focus on Usability
Research indicates that the time customers spend opening an account online - completing their online ID verification and other KYC data - significantly impacts their abandonment rates. Nearly 40 percent of prospective clients abandon an application if they have to spend over 30 minutes on it.
This demands a faster identity verification service, one that’s entirely online and still provides a frictionless and intuitive experience for customers - resulting in better retention and higher conversion rates.
More often than not, online ID verification needs a robust ecosystem that’s highly secure, to mitigate chances of security breaches, ensure data privacy and manage risk. Identity information should not be poorly stored or duplicated, and security breaches should not become the norm.
For that, Passbase offers a secure way to verify users for all sort of industries in the most secure way. Within 3 minutes, companies are able to embed just a few line of code into their service or app to start verifying users. Additionally, Companies can use our adcanced Passbase API, to retrieve relevant data points to import it to their database.
Passbase has the capacity to provide an enhanced user authentication experience and resolve the many pain points users encounter when completing their online identity verification.
Passbase offers ID verifaction for over 150 countries. Read more passbase.com
ID verification as a Service
Over the years, identity verification solutions have evolved. It is now at a point where it attempts to balance the needs of both users and enterprises. Identity verification services lets users provide any legal identity, which then enables companies to verify their identities by tapping into biometric technology.
Albeit the positive outlook, doing this at high volumes for accounts across the globe can prove to be difficult for companies. This is where artificial intelligence (AI) and machine learning (ML) can be leveraged.
With AI and ML techniques, platforms will be able to detect the type of document submitted by the customer, match the photograph on the document with the user’s live image and sometimes even detect document holograms through a mobile phone’s camera.
Smart identity verification services can also incorporate other tools - if face-to-face verification is required, users can simply attend a quick video call to authenticate themselves.
What’s more, identity verification solutions can help shave off hundreds of staff hours every week, resulting in cost savings for the company.
Self-Build Solutions at high risk
A Reuters study revealed that the increasing costs brought on by data privacy policies and regulatory changes was one of the top concerns for over 800 financial institutions.
“The global surveys revealed a single clear message: the costs and complexity of KYC are rising, and are having a negative impact on their businesses. While financial firms’ average costs to meet their obligations are $60 million, some are spending up to $500 million,” the report said.
It also highlighted that nearly 89 percent of corporate customers had not had an easy online ID verification and KYC process, and 13 percent changed their financial institution relationship as a result.
Solve Scaling Issues
The advantages of relying on an identity verification service are plenty. They help enterprises scale to handle high volumes, meet the increasing demands of complex regulatory policies and reduce hundreds of millions in costs.
Better yet, the onboarding process becomes much quicker - online identity verification platforms like Passbase can verify your user’s identity in seconds.
The market is set to grow more, particularly since the technology has the potential to cover multiple applications. Identity verification services can, over time, be used in securing autonomous cars, building an access system for staff and even provide an online authentication service for specific personnel belonging to the military or medical communities. Companies that invest in these identity verification services now stand to gain, pitching them ahead of the competition.
Despite it not providing a band-aid fix to all problems, digital identity truly addresses some of the most crucial risks hampering organizations.
However, before taking up an identity verification service, companies must consider which option works best for them. Factors such as longevity and adaptability to technological advancements will need to be assessed to select the identity verification service that will work well for the company.
User authentication channels a more secure environment, one in which personal data is safe and users get to control who obtains their data - and what data to share. Identity verification solutions might not be able to eradicate all the problems plaguing the data privacy ecosystem, but it’s a key step towards protecting personal information and rebuilding trust.