5 Reasons Why Identity Verification Solutions Should Be a New Standard for Every Serious Business Venture

Digitalization brings new challenges and risks to businesses and consumers. By making data more accessible than ever, cybercrimes such as data breaches, identity theft, and fraud are more rampant than ever. You need to invest in the right tools to protect your company and customers from potential threats and attacks in cyberspace. In fact, 84% of businesses are still prioritizing their efforts in strengthening their cybersecurity up until today.

Nowadays, traditional methods are no longer sufficient to protect your business. You must constantly keep an eye out for the latest trends to reinforce your cybersecurity. Consider investing in an identity-based security system such as an identity verification solution for your company.

What is identity verification?

Identity verification is a method of confirming that there is a real person behind a certain command or process. It authenticates the user’s identity to make sure that they are who they claim to be and that they are entitled to certain digital services. It also provides a structure on how such identities can be audited so that your data and assets remain protected from any unwanted and unauthorized access.

Many industries recognize the importance of identity verification in their operations. Financial companies like banks, for example, use identity verification solutions to confirm their customer’s age and other pertinent information before they can open a new account or perform any transactions. This way, customers don’t have to physically go to the bank just to present their IDs or any proof of their identity.

For many businesses operating online, identity verification is one of the most crucial steps in onboarding customers. This prevents anyone from creating fake identities, carrying out processes on other people’s behalf without authorization, or committing fraud.

How does it work?

The process of identity verification differs for each company. It all depends on the level of security they require, the verification requirements they might impose, and the sensitivity of the information they might have.

Typically, it involves authenticating one’s identity through documents, such as a passport, national identity card, or a driver’s license. This process is entirely digital or online through the use of technologies like artificial intelligence and machine learning solutions.

Others use biometric verification where they require multiple biological traits for their verification. This includes facial features, fingerprints, hand geometry, and others. There are also those that identify users through movement recognition or liveness detection to prevent the use of masks or photos during verification. This is especially useful for purely digital identity verification processes.

These are just some of the verification methods that identity verification solutions can offer. There are many other ways how you can authenticate user identity through technology.

Why it should be the new standard

People’s lives are becoming increasingly digital. Most everyday transactions are now carried over digitally or online. While this setup is convenient for both businesses and consumers, it makes them even more vulnerable to fraud, identity theft, and data breach. What’s more, the lack of face-to-face interaction makes it harder to trust whoever is on the other side of the screen. Hence, identity verification solutions are a must for businesses if they want to protect their company and their customers.

With that, here are ways on how identity verification solutions can help your business.

1. Secures your customers’ trust

In a world where most transactions are done digitally, consumers need reassurance that they are dealing with legitimate businesses and brands. In fact, 49% of consumers would only purchase from companies that they trust. So if you want to attract customers, you must first earn their trust.

Having an identity verification process makes your brand appear more legit and reliable to customers. It shows your commitment to ensuring cybersecurity within your brand. Likewise, it gives the impression that you really care about your customer’s well-being and safety. As a result, customers will feel more comfortable with your brand.

Moreover, trust works both ways. An identity verification solution can reassure you that your customers are legit and real. So you have fewer things to worry about when it comes to cybersecurity.

2. Prevents fraud and money laundering

Companies face serious risks of fraud and money laundering if they don’t take identity verification seriously. With technology nowadays, anyone can easily create a false identity or steal someone else’s identity to do transactions with your brand. This can result in legal disputes and loss of profit.

One of the biggest benefits of identity verification is that it serves as an added layer of protection against fraud and money laundering. Through identity verification solutions, companies can create authentication levels based on the risk potential of each transaction. This way, they can easily determine which ones are good and which ones might be fraudulent.

3. Ensures regulation compliance

Another reason why verification is important is for regulation compliance. Nowadays, there are mandatory regulations that require certain industries to verify their customers’ identities and keep their records. The purpose of these compliances is to minimize frauds, data breaches, cyberattacks, and identity theft.

Regulations regarding identity verification differ depending on the state or country. Companies need to comply with these regulations or else they risk getting sanctioned.

As technology continues to advance, these regulations will continue to evolve over time. It is important that your company can keep up with the changes. Thankfully, identity verification software can ensure your compliance with these regulations.

4. Improves customer experience

Customers nowadays value convenience above all. This is something that identity verification software can provide. Through it, customers can easily access services and finish transactions without spending too much time and money in the process. They can simply do it via the internet using any device they want.

Moreover, identity verification can provide a frictionless customer experience by eliminating the need for manual entry and paperwork which can take days to process. As a result, they can get a smoother onboarding experience and get instant access to your product or service.

You can further improve the customer onboarding experience through IT service management. This allows you to manage how you deliver your services to your customers. IT service management includes order management, hardware, and software maintenance, diagnostics, and troubleshooting. The best IT service management software also allows you to manage incidents, concerns, and service requests. Through IT service management, you can provide support to your customers through every step of their onboarding.

5. Saves up on costs

Not only is digital identity verification more secure than other methods, but it is also a great way to reduce operating costs when it comes to customer onboarding. It eliminates the costs of manual verification and streamlines the various processes involved. It also provides multiple touchpoints for your customers, allowing you to expand your reach without needing to open up physical branches in the process. Moreover, it can help you avoid costly fines by ensuring your regulation compliances.

Protecting your business and customers

With the rise of faceless, digital transactions, companies must be more vigilant when dealing with customers and their employees. They need to ensure that they really are dealing with real persons. Likewise, consumers need that same reassurance when transacting with your brand. At this point, an identity verification solution is crucial for any business operating in this digital age.

Now that you know what are the reasons behind a customer verification process, it’s time that you consider investing in an identity verification solution for your company. To give you a head start, check out Kycaid solutions.