The increasing digitisation of identity verification processes has allowed organisations to verify the identities of potential customers more quickly and accurately than allowed by manual verification. While manual verification is slow and prone to human error, identity verification platforms are more accurate and efficient at verifying genuine customers and their identities.
Identity verification is an invaluable tool for organisations of all sizes, allowing them to effectively mitigate the risks of fraud and ensure compliance with strict federal Know Your Customer (KYC) and Anti-Money laundering (AML) regulations.
Utilising an identity verification platform is one of the most effective ways to protect your business from fraudulent and financial crime.
1. Increased security and fraud detection
Robust tools and processes at the point of onboarding are key to maintaining security and preventing fraud. An identity verification platform utilises tools such as face matching, passive liveness detection and biometric authentication to offer additional security. These tools allow businesses to confirm that a customer’s identity is genuine and that the personal information they have provided isn’t fake or stolen.
2. Lower operational costs
Using an identity verification platform can lower operational costs by reducing the need for manual identity verification. As well as being costly, manual verifications can be time-consuming and prone to errors. In comparison, identity verification technology can quickly and accurately identify customers’ identities.
These platforms can also identify, flag and stop fraudulent activity before it happens, significantly reducing costly chargebacks.
3. Effective transaction monitoring
Transaction monitoring solutions facilitate the identification and reporting of suspicious transactions by cross-checking and confirming the identity of the individual attempting to access the account with the account owner. Effective transaction monitoring protects businesses from financial crime while ensuring AML compliance and avoiding significant fines and reputational damage.
4. Support the growth of your business
Manual verification can be hard to scale up as it relies on a human workforce and requires hiring more employees as the number of user applications increases. An identity verification platform provides access to identity databases from multiple countries which allows you to scale and easily verify the identities of people of different nationalities quickly and without friction.
5. Ensures compliance
Many industry segments in Australia are governed by regulations and are obligated to be compliant with consumer protection, AML, and KYC regulations. Identity verification is key during onboarding in order to meet global regulations and protect your business against fraud and the associated reputational damage. By utilising an Identity verification platform, businesses can configure their verification processes to suit their risk-based approach.
6. Helps your business maintain a good reputation
In a digital environment where customers are spoiled for choice, maintaining a good reputation is essential to building trust and customer loyalty. Maintaining the confidentiality of any information customers give you is a crucial part of customer trust. By implementing a secure identity verification process, customers have the assurance that their information is safe and are more likely to view your organisation in a positive regard. Additionally, a seamless and secure verification process encourages customers to use your services again in the future.
7. Ensures a frictionless customer experience
Customers have come to expect a seamless onboarding process. The ideal identity verification process is frictionless and reduces the time it takes for customers to complete their details and onboard. An identity verification platform improves the customer onboarding experience by eliminating paperwork and making it easy for customers to get started with your services. Customers can verify their identity without the need to go to a location in person and provide physical documents. They also receive results in real-time rather than waiting days or weeks, allowing them to receive faster access to your product or service.