Previously, students enrolling in a degree had to physically visit the centers for customers opting to open a bank account or make a transaction. However, this created hassle and high chances of identity-based risks. Pertaining to digital advancements, every industry and sector readily employs digital identity verification services for more than one reason. But the question remains whether these are completely free from error and risks. As per Statista, 29% of individuals reported an increase in identity theft.
Therefore, digital solutions allow industries to authentically and securely verify their customers’ identities. This happens through documents verification and facial recognition to ensure secure onboarding. The AI-backed services have made this process lot easier for industries because they employ encrypted technologies that are less prone to any threat. The services use a simple working mechanism while allocating enormous benefits. Read on to explore more.
How Do the Encrypted Identity Verification Services Work?
Digital onboarding and identity verification require similar steps to physical verification. Thankfully artificial intelligence and machine learning solutions are capable enough to remotely authenticate customers’ identities either through online platforms or a mobile application. These systems extract the required information by using OCR technology, and through facial recognition, it ensures that the customers actually exist in the real world. Furthermore, through real-time verification, the system ensures that the customers are not camouflaging or faking identities.
For instance, the majority of the industries, finance or gambling, are directly regulated by authorities. They oblige them to carry out Know Your Customer (KYC) verification to prevent synthetic identity fraud. Therefore, as evident from Shufti Pro News, industries need to inculcate digital solutions that come with simple and user-friendly steps.
Step 1 – Real-time selfie-video capture
To begin with, the authentication, biometrics identity verification system asks the customers to provide a real-time selfie or video from their devices. After submission, the system extracts the biometric data from the face and creates a face map in mathematical algorithms form. This further includes
- Passive liveness detection
- Automatically detects the place of the face and captures it
- Analyzes the real-time selfie or video using AI-backed tech
Step 2 – Extracts Information from the Identity Documents Using OCR
Next on, the customers are asked to provide their identity documents as supporting evidence. The system then automatically extracts the required data through OCR while confirming the validity of the documents. The system then analyzes the security features of the document, for instance, ink, watermarks, and holograms. This is necessary to ensure validity while reducing the chances risk of fraud.
Step 3 – Verification Results and Onboarding
The system offers improvements to identity theft prevention and customers verification, access to global AML databases, extraction, and validation of information. This way, industries can keep track of their customers. This is so because during verification, if the customer passes, the information is stored in the back office through an API call. The solution is:
- A complete one-place solution
- Ensure adherence to KYC, AML, and GDPR standards
- Complete control over the information extracted for future use
Identity Verification – Benefits of these Digital Services
The majority of the industries, including financial, e-commerce, and healthcare, are transferring their processes to the digital verse evident from Shufti Pro Fundings. Alongside these industries’ needs, identity authentication verification has become a must to ensure secure onboarding and prevention of criminals acts. Furthermore, it has reduced the involved risks and costs and ensures regulatory compliance. The industries need digital verification solutions because of the regulations and standards and protect their customers’ information, which is their prime responsibility.
Identity verification digital solutions offer such guarantees and back industries processes. Furthermore, it provides fluidity to internal processes that help industries compete in the bigger market and elevate statuses. Shufti Pro Funding massively highlights that why industries are relying on digital solutions. These are sure to reap the following benefits.
Improved Customer Experience
Online ID verification streamlines the authentication process and saves customers from traveling long ways to visit a facility physically. This way, both the companies and customers are equally facilitated with fewer chances of abandoning the onboarding.
Cost-effective
Digital authentication services are cost-effective and involve less human effort. It efficiently manages the process. As the global barriers are massively taken apart, these cost-effective AI-powered solutions help businesses retain market worth and reliability for worldwide customers.
Prevent and Detect Fraud while Guarding Customers’ Information
AI-backed encrypted verification solutions allow platforms to detect fraudulent risks quickly and protect the industry’s reliability, trust, and customer data.
Adherence to Regulatory Compliances
Another benefit that digital solutions allocate is the easy adherence to regulatory compliances like KYC/AML regulations and GDPR. This way, industries can prevent hefty fines.
