Digitising the identity verification process: critical for business success

Written by: Vaiie Posted: 12/03/2021

BL72_VaiieAD_LeeBosioWill Covid-19 present a watershed moment for digitisation – creating a far greater shift to digital channels, asks Lee Bosio (pictured), Managing Director, Vaiie

Even before the global pandemic, digital identity verification had already started to become an integral part of everyday life.

Covid-19 has accelerated the need for businesses and governments worldwide to rethink their approach and digitise their identity verification process to facilitate day-to-day interactions and offer an effective and efficient customer experience remotely – a component critical to future business success in a digital age. 

Limitations of manual verification 

In recent years, checking identity documents manually has raised questions about validity and efficiency. How do compliance teams really know that a document is genuine, or whether it may open up their business to fraud down the line? Are the individual employees tasked to deal with these documents actually equipped to tell the difference between a counterfeit and the real thing? 

Even with sufficient and ongoing training, it’s one thing to spot a fake document in the office, but another entirely to do so working remotely with a lack of face-to-face interaction. 

With an increasing number of domestic and international identity documents to check, potentially at large scale and within tight timeframes, the task is becoming even more arduous, and this pressure increases the risk of human error. 

Digital ID verification

There is a wide range of applications of digital ID verification in the financial services sector, from account opening and meeting CDD requirements, to identity authentication as an individual carries out financial transactions. 

By using a secure, compliant verification tool, businesses can: 
• Record the session so it can be tracked and saved for reporting/audit needs 
• Analyse a selfie video for biometrics and match against the provided passport 
• Reduce identity fraud by performing liveness checks
• Check all passport details against established databases and scan the RFID chip within to verify authenticity 
• Once approved, send out a contract/terms and conditions via email to the customer with an e-IDAS qualified digital signature that uses a one-time password for validation
• Once verified and validated online, enable online customer onboarding to continue. 

Customer expectations

Not only can digital ID verification enhance risk management, including through streamlined KYC and AML processes, it can be a chance to improve customer experience and boost efficiency.   

 With a rapid number of services moving online and digital demands from customers increasing, it is paramount that any digital programme implemented into business processes provides a best-in-class customer experience with low friction.

The user experience must put customers first so they have the best possible chance of passing through the verification process first time, whatever device they are using. If the experience does not meet customer expectation, it can be an easy way to lose customers, which can reflect negatively on an organisation.

Watershed moment for digitisation 
Jersey’s diverse financial services client base has always been mostly off-island, making the prominence of a digital ID verification solution topical, particularly today. 

International customers seeking to use Jersey financial services providers and products want to do so easily and efficiently, often away from time-consuming, paper-rich processes, but with the majority of that business being classified as higher risk by providers. 

Finding a suitable platform that can support complex customer onboardings remotely, with automated verification and screening, syncing with core systems and creating a real competitive advantage for the provider, can be a challenging and complex exercise. 

Choosing a provider who understands the financial services industry in Jersey and internationally is key.

Covid-19 may be a watershed moment for digitisation, causing a greater shift to digital channels as customers accept and embrace a new normal. 

Whether businesses are considering ramping up remote onboarding to meet new demand or moving existing services online, a robust identity verification solution is essential to customer adoption. 

Applying smart processes now will pay dividends when the pandemic is behind us, and will enable your business to remain competitive as we enter a new age of remote business. 

As Managing Director of Vaiie, Lee Bosio is responsible for the creation and implementation of digital strategies to seize the current growth opportunities in the management of regulatory processes within the financial services industry.

To discuss the benefits of Vaiie’s Identify solution, contact: 
Email: hello@vaiie.com 
Tel: +44 1534 616760
Web: www.vaiie.com/regtech/identify

• This advertising feature was first published in the March/April 2021 edition of Businesslife magazine

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