How Identity Verification in Online Account Opening works?

How Identity Verification in Online Account Opening works?

With digital transformation and an increase in usage of smartphones, people mostly prefer to do business online. Be it shopping or banking, it is more convenient to sit home and do stuff without physically visiting a bank or a store. 

Owing to this increase in user demand, the businesses need to adopt new technologies to facilitate customers and retain their customer base. However, transforming the business online, especially the businesses involving financial transactions is not a bed of roses.

Businesses will not only have to transform all their operations to the digital platforms, but they will also face issues that are they are not aware of. For instance, cybercrimes, credit card frauds, identity theft, and many other similar issues that are very difficult to track.

To sustain customer loyalty, businesses will need to make digital customer experience efficient and security measures foolproof. This blend of enhanced customer experience and security will guarantee a successful business venture in the digital world. Digital ID verification is the key point for effective security measures. It helps in the elimination of the cyber frauds. While conducting business online, organizations have to verify that the digital identity of the person matches their physical identity.

Here are key reasons why companies should focus on Artifical Intelligence (AI) based ID verification online techniques to make a successful digital transformation. 

To get rid of Flaws in Old Verification Methods

National Institute of standards and technology no longer recommends traditional verification techniques such as Knowledge-based verification. Knowledge-based verification questions can simply be compromised. Especially, when intensive use of social media makes personal information available publically. 

Recent data breaches from social media and usage of personal information for political purposes is an alerting example. This means that personal information can easily be stolen and used for malicious activities such as Identity theft or spoofing.

Moreover, answering security questions every time can make customer experience a little tiresome. Consumers might find it annoying to answer these security questions.

Online ID verification techniques minimize all these risks by initiating real-time and fast verification.

To Earn Customer Trust

The success of a digital business depends on customer trust. Cambridge Analytica’s detraction made it even harder for digital businesses to earn customer trust. A study conducted recently found out that only 25% of customer believes that company keeps consumer data protected. Building customer trust has become more important as customer’s knowledge and concern over cyber theft increased.

Digital businesses need to embrace ways that will help in securing consumer data. In addition, they need to ensure real customers are taken on board while fraudsters are kept at bay. Effective ID verification proofing techniques that use Artifical Intelligence and Machine Learning techniques can assist in responding to these objectives. 

Not only these methods make the security foolproof, but they also make the verification process fast and seamless. AI-based Identity verification techniques such as liveness detection, real-time OCR documents scanning helps in providing flexible and simple customer experience. So, online ID verification can assist companies to earn customer trust. 

To Detect Fraudulent Activities and Transactions

The ID verification process involves the use of public and private databases to confirm that a person’s digital identity matches their physical identity. Organizations can easily prevent fraudulent and criminal activities by a successful authentication. By detecting fraudulent activities companies can prevent money laundering, identity theft, corruption, and other crimes. 

The latest ID authentication services can help companies in the elimination of fraud. These technologies use Artifical Intelligence and Machine Learning techniques to authenticate customer identity. Some of the prominent verification techniques include liveness facial detection, biometric identification, and government-issued document verification. 

Adapting to these verification methods shows companies' commitment to protect customer data and prevent fraud. Many online frauds like credit card theft, spoofing, identity theft, money laundering, and others can easily be eliminated through the use of these technologies.   

Identity verification is key in successful digital business transformation. Organizations that are willing to transform business online needs to improvise and adopt state of the art ID verification techniques. 

Fraud detection through these ID verification techniques is cost and time effective. These authentication methods enable companies to perform secure online transactions. Moreover, anti-spoofing techniques not only ensure a seamless digital experience for customers, but they also make security reliable.