KYC Challenges and Technology Transformation

A recent Accuity KYC survey revealed that 75 percent of compliance and correspondent banking professionals have encountered added complexity in interpreting local legislation and 68 percent are suffering from a lack of skilled staff. With the cost of compliance also still a major challenge, financial institutions are looking to new technology to provide the answer read more

Identity Verification in 2020 and Beyond

Proving that someone is who he says he is was once limited to face-face verification, but with the rise of technology, transactions are frequently carried out online. With this advancement comes the risk of identity theft because we have to reveal our personal information when signing up for new services. Consequently, nearly every entity relies on an identity verification service to approve real customers and deter fraud. As technology continues to advance, let's take a look at the challenges and opportunities that identity verification in 2020 and beyond will have.

Opportunities in Engaging Identity Verification Service

Online Education

Students who are after a good grade without working for it use different tactics to ensure they pass. One of them is having someone take the exam on their behalf, which in the long-run means the workers employers get are unknowledgeable despite having impressive certificates. With an identity verification service to authenticate that the student taking the exam is the one registered; such future problems will be eliminated.

Health Sector

Clinical studies have benefited from virtual visits because participants do not have to check in physically. However, for such studies to have viable results, the scientists have to authenticate the volunteer's identity. Additionally, you can never be too careful; hence an identity verification service will ensure that the health care provider is licensed and qualified.

Challenges during the Identity Verification Process

Customer Ignorance and Beliefs

Usually, service providers rely on official identification documents to verify a person's identity. Unfortunately, not everyone has such documents, so coming up with a database that integrates a person's entire information is difficult. Besides, some digitally illiterate customers will not see the need for such services. Others are illegal immigrants or hold certain religious or personal beliefs against technology. Some are physically deformed hence cannot provide key biometric data.

Privacy and Trust Issues

No one is ever comfortable revealing their personal information; hence businesses must prove that the data customers provide will not be breached. Customers are legally supposed to be aware of how companies are managing their personal data. In Europe, the European GDPR protects consumer data, but it is up to each business and government to set up a framework to manage personal data. Therefore, an identity verification service is essential to prevent your business from losing data and facing the customers' wrath.

Parting Shot

The nature of your business will affect how crucial you find identity verification. If you deal with sensitive personal data, you will need stringent measures to protect your customers. While most businesses are still relying on physical identity verification, digitally doing it is the only way to keep up with the technological changes that are yet to come.

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