The Global Banking Process Automation Market is expected to reach approximately $19.1 billion by 2032, significantly increasing from its 2022 value of $3.0 billion. This describes a compound annual growth rate (CAGR) of 23.7% during the projection period from 2023 to 2032.
However, with this automation in the banking system, there is an increasing threat of identity theft for bank users and onboarding new customers. Therefore, financial institutions opt for automated check ID online to enhance the security of the banks while onboarding new users and protect their integrity.
This article will delve into the necessity of automated check IDs online and their use in bank onboarding.
Critical Elements of the Article
- Comprehending Digital ID check
- For onboarding new customers, identity check online
- For KYC and AML compliance with digital identity check
- Advantages of identity check online
- Various kinds of identity verification
What is a Digital ID Check?
The digital ID check is the process of verifying the individual online with the help of technology for accurate and fast authentication. This is an optimized solution for the banks to verify the applicants immediately on the spot or can demand their credentials online for the authentication process.
It is known that banks are at the most risk of encountering financial fraud. Also, the fraudster will not stop stealing the identities of legitimate humans. This makes the digital ID check essential for financial organizations to comply with regulatory requirements for onboarding.
Identity Check Online For Reliable Onboarding of New Customers
The digital identity check is a more efficient and accurate way of onboarding new bank customers. Online identification can transpire anytime remotely and is a more reliable means of verification. When new customers onboard the banks, it is essential for the institution to verify them beforehand. The cutting edge technology has immensely overlooked the issue of identity theft and has prevented many financial losses. The identity check online works in the following manner:
Customer Submits Data Online: The customers scan or click pictures of their identity documents and send them to the authority that passes them through specific verification methods.
Customer’s Data Verification: The system compares the captured document images with the existing database to confirm they match. The submitted data is then verified after transpiring through different procedures and proves the legitimacy of the individual.
Further Manual Checks: The administrative authorities manually verify and double-check to skim through the computer-generated results. There is a scarce chance that AI verification cannot identify the subjects, but they are usually accurate and time-saving.
Digital Identity Check For KYC and AML Compliance
Financial institutions, particularly banks, are obliged to comply with KYC and AML regulations to opt for robust compliance against identity forgery and anti-money laundering. Automated check ID online can authorize businesses to ensure frictionless customer onboarding while combating financial risks and allowing customers to carry out transactions from anywhere, anytime, hassle-free.
Pros of Identity Check Online
The digital identity check has many advantages for the banks as finances are always involved in every action. The following are the benefits of the identity check online:
- Fraud Prevention
- Cost Savings
- Security and Surveillance
- Increased Compliance
- Better Customer Retention
- Identity Assurance
- Prevents Identity Theft
- Trust and Credibility
- Ensures Compliance
- Improved Customer Onboarding Process
The Types of Identity Verification
There are certain types of identity verification that is used for user authentication, especially in the banking system, which are as follows:
Identity Verification: It is a process that verifies that the applicant is the one who has applied for a certain service and would like to open a bank account. Automated check ID online will scrutinize details such as name, address, passport number, national ID number, and date of birth to confirm that there are records on file that match that data.
Identity Validation: It’s essential to validate identity information to ensure that a record with inaccurate or fraudulent data doesn’t seem legitimate, even if the identity information matches a record. For example, verifying that the social security number of the person indicates they are alive is crucial.
Document Verification: Document verification involves analyzing, verifying, and authenticating various types of identity documents to demarcate their authenticity. It ensures the legitimacy of the documents and demonstrates that they are not forged or altered.
Knowledge-based Authentication: It is a process that uses questions only the applicant knows only. This process usually takes place after the person has on boarded the bank.
Biometric Authentication: This verification process occurs during account opening, onboarding, and transactions. This includes identifying human features, such as a fingerprint, retina, face, or voice.
Two-Factor Authentication: The 2FA is the process that mixes two types of authentication, such as passwords and PINs, with additional KBAs and biometrics.
In Conclusion
Adopting automated check ID online offers a pivotal advancement in the banking system. It provides the dual benefit of streamlining user onboarding processes while fortifying security measures. As the banking sector navigates evolving threats, including identity theft and financial fraud, digital identity verification arises as an essential protection. Moreover, the numerous advantages of online identity checks extend from compliance to cost savings, fraud prevention, and enhanced customer retention.
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