Eldon Broady

How COVID Is Shifting Us to Need Identity Verification Now More Than Ever

The pandemic has consistently found a way to change some aspect of everything we do. We hope some changes aren't permanent, such as Thanksgivings over Zoom, but other changes are likely part of the "new normal." Our dependence on technology is one of these permanent changes. Over the past year, consumers around the world have learned to rely on digital means of accomplishing tasks they would otherwise do in person. But with digital occurrences of fraud now far outpacing in-person scams, the financial services industry has had to lean on identity verification service providers to stay ahead of the latest COVID-related financial fraud. Here's what you need to know.

Anti-money laundering policies have historically imposed "know your customer" (KYC) regulations that require financial institutions to sufficiently verify their clients' identities. These KYC policies are meant to protect both the consumer and the financial institution from fraudsters and malicious bots. And until the pandemic, many financial institutions were already moving to digitize this process. According to the Information Systems Management Group, since March 2020, 85% of financial institutions provide some form of digital account opening. Moreover, the allocated budget size for developing these processes nearly doubled during this same period. While there's nothing new about digital identity verification in itself, the demand to digitize the process is soaring.

Before the COVID-19 pandemic, you may have begun the process of applying for a loan online only to finalize the documents in person while sitting down with a branch representative. During this visit, you were likely required to furnish proof of your identity with a valid state ID or Social Security card. But today, this hybrid approach won't do. The need for identity verification service providers has become as commonplace as ring lights on desktops. If you are looking for identity verification service providers, visit this website.

Therefore, choosing an identity verification service provider is one of the most critical decisions a financial institution must make. Without a compliant digitized identify verification system in place, it's nearly impossible to fulfill consumers' growing needs in this new economic landscape. We're seeing online transactions and the frequency of fraudulent attacks increase at almost identical rates. To build trust and reduce onboarding friction, the financial service industry must consider the user's experience, but not at the expense of their safety. The race to provide customers with frictionless access to online banking services while simultaneously combating bad actors is a careful balancing act of managing risks and rewards.

Author Resource:-

Eldon Broady writes about identity verification and business verification service. You can find his thoughts at ID verification service blog. If you are looking for address verification process, visit this website.