Business and trade are a core process in today’s highly functioning economies. Where business and markets have been penetrated with technology as businesses look to make use of this technological boom for their advantage. Legacy processes which were not possible earlier are being performed today in the palm of our hands. Like payments, buying and selling of goods and the overall global exchange of information. Regardless of the activity, one aspect is for certain that these businesses need to onboard a whole lot of customers. Some of which are good and some not so good and thus need to implement transparent KYC processes to instantly verify customers.
Understanding the Global Rise in Online Identity Verification
As discussed above, the word is moving towards digitization at an exponential pace that is forcing businesses to bite into a piece of the pie. The pie happens to be the global digital user-base of millions and billions of people connected to digital devices and the internet in general. For businesses, these numbers represent potential customers that are not being onboarded.
The possibility to onboard individuals without vetting their identities wasn’t possible as it would directly violate AML and KYC regulations. In order to fulfill both the industry’s and regulatory institutions demand, the process of online identity verification came to being. Online IDV is a $20 billion market according to estimates by 2020. Because of its importance, it is imperative to know about the latest trends in the online IDV industry.
Newest Happenings under Online Identity Verification
Layered Authentication through IDV – Identity Verification can involve multiple types of verification to ensure the legitimacy of the individual. Where identity ownership is one aspect, others like 2FA can be combined to decrease the chances of fraud and illicit access into accounts.
Liveness Detection is Fundamental for Facial Verification – Legacy facial verification is obsolete and unable to detect new age facial spoofing attacks. In order to have effective Facial recognition solutions, anti-spoofing measures like liveness Detection greatly enhance the existing capacity and ensure live human presence.
No online IDV without Artificial Intelligence – Artificial Intelligence is allowing existing IDV processes to be streamlined, where AI ensures a certain degree of automation that was not possible with IDV without AI earlier. AI-based ID verification is rapidly progressing as more advanced machine learning algorithms are being developed to optimize IDV rule bases increase efficiencies.
Mobile ID Verification is the future – 70 % of the global users have access to mobile devices, this makes the use of mobile technologies to tap into this specific segment very important. Online ID verification is evolving into delivering Mobile ID Verification solutions to facilitate due to diligence on the move without having to be location dependent.
Facial Biometrics for Authentication – Facial Verification is now being considered as a means for authentication to instantly verify customers. Where traditional KBA, password, usernames are proving to be risky. Facial biometrics are being employed instead of passwords at key processes. Like initiating high-risk transactions or high profile login places. Increasing the security of the platforms employing it.