In June, I wrote about the changing financial backdrop of cryptocurrency -- more specifically, its gradual move from an outlier financial technology to mainstream institutional acceptance, and how regulatory bodies are tying Anti-Money Laundering (AML) and Know Your Customer (KYC) best practices to that price of admission. Trulioo’s identity verification tool, GlobalGateway, is the leading technology to help satisfy these compliance requirements; matching users against licensed data sources like credit bureaus, government records, consumer files, and telco and utility records.
But what if you don’t have a government-issued ID card? No evidence of credit history? Live in a part of the world where public birth registration is not supported? Without the proper identification and/or documentation needed to open a bank account, how will the unbanked gain access to financial services? Access to basic financial services is linked to overcoming poverty, reducing income disparities, and increasing economic growth. The issues of identification and financial inclusion are suddenly very sensitive and increasingly important. How is technology helping, and why is it important?
According to a recent World Bank report, the last five years has seen a 20% drop in global population without a bank account. However, the way in which the unbanked join global commerce is particularly distinct. Microfinance institutions (MFIs) lead the way, providing critical lending and investment services. Virtual currencies and other alternative financial technologies have also targeted this market and continue to play an increasing role in adoption. Similar to MFIs, financial technologies reduce costs significantly, removing the registration barriers to entry of traditional banking. When given the opportunity to participate, people will naturally take advantage. Supporting this effort is paramount for financial inclusion overall.
There will constantly be new ways that people around the world attempt to join global commerce. Of course, global regulators will also pay attention and attempt to enforce traditional AML and KYC oversight. Understanding that eventuality and supporting the goal of financial inclusion do not have to be mutually exclusive.
Trulioo’s GlobalGateway technology will continue to deliver an equal ability to translate new financial activities into multi-functional layers of online identity verification, thus solving immediate concerns and bridging the gap between new and traditional banking methods.