eIDV + Document Verification = Enhanced KYC Checks
The power of real-time identity verification combined with document verification
Signing up new financial service customers online or via mobile requires a multi-layered approach that integrates best-in-class identity verification and authentication solutions. Protect your business and customers from fraud, identity theft and fines for non-compliance of Anti-Money Laundering (AML) and Know Your Customer (KYC) rules by ensuring the highest security and compliance processes are in place.
Consumers want to sign up for your service on their mobile device whenever and wherever they are. If they have to prove their identity in person by visiting a physical location to present identity documents in person, you can assume a significant portion of consumers will abandon the process, resulting in another “soft decline.”
According to Jim DeBelloa, CEO of Mitek, he estimates such soft declines account for about 20% of failed enrollments. That is a major hit on customer acquisition. On the other hand, compliance failure or online fraud is costly and proper business safeguards mean you must have steps in place to protect your business.
So, what are you going to do? How can you embed multiple layers of security when verifying a customer without creating friction? The answer is right in the palm of your hands. Mobile devices can help businesses overcome the limitations of signing up to a service online if the backend technology (e.g. eIDV, document verification) is seamless and invisible to customers.
What we are talking about is an identity verification stack that leverages electronic identity verification and document verification service to verify a customer’s identity in real-time, cost-effectively, and efficiently.
Electronic Identity Verification
Electronic identity verification (eIDV) is technology that enables verification of a person’s identity remotely through digital means. Traditional methods of ID verification requires the presence and checks of physical ID, such as driver’s license, passport, utility bills or other tangible identity documents. This process requires extensive paperwork and labor and is thus time-consuming, cumbersome, slow and costly to both the service provider and the customer.
eIDV bypasses the physical document and relies on the data of the consumer such as name, date of birth, address as well as many other potential data points. This data is checked against various databases of consumer data (credit bureaus, government agencies, utilities and other data sources) to determine if a service pass rules for identification are met.
There are benefits of eIDV for both the consumer and service provider. For the consumer, they can apply online or on a mobile device, it’s quick and it’s easy. For service providers, they satisfy the regulation compliance and fraud prevention measures that are necessary for financial services companies and money services businesses (MSBs). There are also benefits to the bottom-line due to lower costs achieved by better processes and higher profits by quicker, smoother onboarding.
A document verification service enables you to quickly determine that an ID document is real and authentic from anywhere in the world.
The service recognizes different identity documents and performs comprehensive algorithmic-based checks on thousands of global document types. The system also checks for unique enhanced security features available in some ID formats (such as US Drivers Licenses), and analyzes and decodes these advanced security functions. When you get a positive match on the ID, you then have the confidence to determine the document is real and not a forgery.
A real document, however, doesn’t automatically imply identity verification. Someone could have a forged document with false identity information.
The document verification service collects the information in the document by performing Optical Character Recognition (OCR) of the images, which deciphers the text. The identity data is sent to Trulioo’s API to perform instant eIDV. That’s where the power of Trulioo’s GlobalGateway comes into play with the ability to check multiple identity attributes against multiple data sources.
Combining eIDV with document verification services enables a multi-layered approach to strengthen identity verification systems, increasing levels of confidence in your KYC checks to reduce fraud and mitigate risks.
Trusted identity verification helps create trust in the digital channel for safe onboarding, fast money movement, and user authentication. Adding document verification technology offers a customer-friendly user experience and less room for (human) error, especially mobile onboarding. Increase customer retention, increase on-boarding efficiency and more effectively meet your KYC & AML requirements with eIDV + document verification.