The backbone of every business is trust, and this applies to banks, financial institutions, Forex brokers, insurance providers, cryptocurrency exchanges, trading firms, and BNPL services as well. Client onboarding is one of the most sensitive stages in the journey with a client in the financial sector, and identity verification solutions make up the core of the operation. Traditional methods of authenticating an individual’s identity require painstaking in-person attendance, documentation, and meticulous scrutiny that inevitably consume precious time.
On the other hand, digital identity verification systems help the financial sector adhere to compliance mandates, which greatly accelerates the identity verification process, increases regulatory compliance, and streamlines the onboarding process. As business operations become digital, financial companies and organizations now have the opportunity to rely on digital client onboarding systems to save time and improve work efficiency.
Along with digital operations, the challenges of financial threats are also rising. Financial criminals and money launderers use fake identities to commit financial crimes, which greatly compromises the overall security of the financial industry. This is a concern that cannot be ignored and it is a central reason why many businesses are investing in digital identity verification services right now.
Transforming Onboarding with Advanced Identity Verification
Digital identity verification solutions utilize technology, including artificial intelligence (AI) and machine learning (ML) algorithms, to authenticate identities quickly and accurately, thereby streamlining the onboarding process for both financial and non-financial organizations. In the traditional KYC process, there is always the chance of human error during identity verification. As a result, it is important to consider various mechanisms that can make the process more accurate and efficient.
Optical Character Recognition (OCR) Technology:
OCR technology enables quick and accurate extraction of information from identity documents and reduces manual errors. It assists with instant identity verification and delivers accurate results in seconds.
AI and ML Integration:
AI and ML algorithm-based identity verification helps to identify fraudulent patterns related to money laundering and illicit financing.
Facial Recognition:
Facial recognition is a feature of digital identity verification that assists in face-matching scores and ensures genuine identities.
Real-time Verification:
The Video KYC verification method helps authenticate the identity of the client on a video call by an agent. It assists in real-time identity verification and completely reduces the risk of identity fraud.
These systems and technologies transform the client onboarding process and are the reason why financial and non-financial companies choose digital identity verification solutions over traditional alternatives. It takes less time to conduct identity verification and delivers accurate results.
Benefits of Advanced Identity Verification in Onboarding
Digital identity verification solutions provide various advantages to financial industries in a couple of different ways.
Enhance Security:
Advanced identity verification checks confirm legitimate customers and block illegitimate identities from accessing sensitive information. Therefore, it enhances the security system of financial companies against fraudsters and prevents financial crimes.
Quick Onboarding:
The identity verification solution for the financial industry validates entities accurately and instantly, improves the client onboarding process, and allows small, medium, and large size enterprises to provide seamless client onboarding.
Comply with Regulations:
Advanced identity verification APIs comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations and authenticate identities according to regulatory standards.
Improve User Experience:
A robust identity verification system provides a smooth user experience by offering an easy-to-use API and a quick authentication process.
Risk Mitigation:
KYC API for financial sectors reduces synthetic identity fraud, and AML API assists in background verification to check whether they are involved in any illegal activities. Therefore, identity verification solutions play a significant role in risk mitigation.
Fraud Prevention:
KYC and AML solutions assist in recognizing identity fraud and fraudsters, which helps to safeguard businesses from financial criminals. It helps with fraud prevention, ensures fraud-proof business transactions, and maintains a fraud-free reputation in the market.
Build Trust:
Identity verification providers ensure legitimate business identities and create a fraud-free business reputation that builds trust with new clients, investors, and vendors.
Secure Business:
Digital identity verification service providers ensure quick identity authentication and prevent money launderers and financial criminals. KYC solutions for the financial industry come with the surety of genuine clients, and AML solutions assist in background verification. Both solutions ensure fraud-free business transactions and secure business for the long term.
How Does IDMERIT Help in Advanced Identity Verification?
IDMERIT is a renowned name in the identity verification industry. It provides comprehensive identity verification solutions for banks, financial institutions, fintech companies, cryptocurrency exchanges, insurance providers, Forex brokers, buy now, pay later (BNPL) services, and other non-financial sectors globally. IDMERIT’s identity verification solutions are cutting-edge, technology-based, and safeguarded from advanced financial threats.
They offer complete solutions for small, medium, and large-sized companies globally. They have a KYX platform that provides multiple identity verification solutions in a single platter, which assists in authenticating identities via different identity verification methods depending on the business needs.
Video KYC Solution:
They provide an advanced KYC method, i.e., a video KYC solution that assists in authenticating identity on a video call by an agent to ensure real-time identity verification.
Global Access:
They have global access to 440+ data resources to authenticate identities quickly and securely.
Highest Match Rates:
Their API identifies and verifies identities instantly and delivers accurate results with the highest match rates in the industry.
Multi-Language Support:
Their identity verification API supports multi-language and assists in a frictionless onboarding process.
Multiple ID types:
IDMERIT’s KYC API can verify 580+ types of identities and ensure quick authentication.
Data Protection:
IDMERIT ensures data protection and encrypted sensitive data during transmission via TLS and SSL.
Privacy Shield:
IDMERIT is GDPR, HIPAA, and CCPA compliant.
Customized Solutions:
They provide identity verification solutions as per their client’s business needs. If clients need to add or remove any identity verification method, then they can do it as per their business needs.
API Integration:
They provide a play-in and plug-out functionality-based API that is easy to use and can be integrated with any existing system.
Fast Authentication:
Their KYC API authenticates identities within 1 second and delivers accurate results.
Global Industries Choice:
IDMERIT provides comprehensive identity verification solutions for financial and non-financial industries in all countries. This is why IDMERIT is a global industry’s choice for identity verification services.
Identity Verification Is Critical For Businesses Both Big and Small
In an era where everything is digital, onboarding takes place virtually when a new client registers with a financial institution, and this is where the firm’s security measures as well as a verification of its low-risk business operations are put to the test. As onboarding is performed without any human interactions, identity verification should be automated to allow seamless and secure identity authentication.
Fraud prevention systems increase business security and operational efficiency, reduce the risk of fraudulent activities, promote trust, and guarantee compliance with laws. They also protect the institution from sophisticated technology-based risks. The financial sector should integrate modern technologies if it hopes to remain competitive and ensure operational integrity, all while building trust in a fraud-free environment.
It is important to choose a reliable and trusted KYC and AML solutions provider for financial businesses to assist in combating money laundering, synthetic identity fraud, and malicious fraudsters. Secure your business with an artificial intelligence and machine learning algorithm-powered identity verification API, and ensure fraud-proof business transactions today.
