Why Do Banks and Financial Institutions Need ID Verification Services?
Identity verification has always been a part of the onboarding process when customers open an account with a bank or financial institution. The process of ensuring that people who open accounts are who they claim to be is critical for maintaining security and preventing crimes such as fraud and identity theft, as well as for maintaining legal compliance.
However, with the explosive growth of online banking, customers’ growing user experience expectations, and increased demand, the need to integrate efficient and secure identity verification into online banking products has become even more critical.
Why does identity verification matter?
Identity verification ensures that the clients with whom banks, financial institutions, and other industries do business are who they say they are by checking multiple databases to confirm and verify the user’s personal information.
Identity verification aids in the maintenance of federal and international compliance programs, adding a layer of security that protects banks and financial institutions from being accidentally involved in money laundering or terrorist financing schemes.
While online banking increases customer accessibility, banks must also manage customer information in the digital space, which necessitates increased security.
Why is identity verification needed?
- Compliance: banks are responsible for upholding federal regulations including AML and KYC.
- Security: banks take measures to ensure your identity is protected. Identity verification prevents crime, including identity theft and money laundering.
Identity Verification for Banking
We live in a digital world where everyone has access to the Internet and a wealth of potentially harmful information. While online banking is extremely convenient because it allows people to sign up for and manage their bank accounts from virtually anywhere, it has also increased the likelihood of fraudulent activity, money laundering, and identity theft.
Creating a more positive customer experience
Digital identity verification is a best practice that helps build trust and safety between customers and financial services. It improves the customer experience by eliminating the need for customers to be physically present for verification and simplifying the entire process to the point where customers can complete it in minutes. It is simple to provide compliance for you and your customers, prevent fraud, and benefit your employees by reducing workload with FACEKI identity verification solution.