The advanced digital means used to verify the identity of the customers integrate electronic identity verification. The clients must provide their name, residential address, and utility bills; the system extracts the other data from the government’s database. The digital system has made it mandatory for companies to switch to the latest means, and in this shift, the financial industry is at the forefront. The remarkable features of identification checks show their wonders in every sector, and the demand for these solutions is increasing daily. In 2022, the market for the biometric system was $28 billion; in 2027, it is expected to exceed 70 billion US dollars.
What is Electronic Verification?
When the companies onboard new clients, they perform their verification, and this is done to ensure that the customer is not involved in any illegal activity. The solutions are very advanced; new features are added and improved daily. The best characteristic is that they are customizable and adapt to the changing market trends. They are up-to-date according to the government’s latest rules and regulations. The organizations that integrate these solutions do not have to worry about the varying trends; compliance with the electronic check verification preserves businesses from the penalties.
What Happens When the Company is Not Compliant with the e-IDV?
An organization prone to fraudulent activities loses its customers’ trust because clients do not have confidence in the integrity of the company’s surveillance. Users prefer something other than that company where their data and credentials are safe. The customers will shift to the businesses’ competitors and those providing better services.
- Less Client Retention Rate
When clients face fraudulent activity, their mental health is also affected; they will never return to such a company, so the client’s retention rate is affected.
- Decreased New Customers
It would be difficult for the company to gain new clients, as nowadays, most individuals associate with a company after reviewing them on social media. And if the company has a poor brand image and bad reviews from previous clients, then surely new clients will prefer something other than such a company. In this way, the company will not only lose their existing users but will even be unable to attract new customers.
- Employee layoff or Resignations
Companies that do not integrate identity checks face data breaches. If any employee is involved in exposing the organization’s data for the sake of money, then the company has to fire such an operator. Secondly, sometimes employees leave the company if the brand image is notorious, as it can impact their career in the long run.
Types of the e-IDV Services
Electronic identity verification is used to onboard new customers; different companies integrate different kinds of authentication systems, depending upon the type of their business.
- Document Verification
The clients must submit a soft copy of their papers; for this purpose, they must take snaps of their identity card, residential address, and bank statement. After this, the scanned documents are uploaded to the website. The system in the background ensures that the client has given the desired data and completed the papers. Any kind of photoshopped or stolen paper is immediately rejected.
- Biometric Verification
The user’s physical characteristics are identified; for this motive, the users must face the camera, scan the image, and upload it to the database. It is then matched against the previously stored image in the system. Facial biometric authentication is effortless and swift to use, and usually, companies prefer this type of electronic identity verification.
- Ongoing Monitoring
Especially in the financial sector, continuous user monitoring is crucial to get complete user information. The risk rate of the users is measured and then classified as high-risk and low-risk. After monitoring, customers are organized, and the company must build a relationship with them accordingly. After the electronic verification services, the green or red flag is shown, which means the client is good to go or not.
Can Organizations Survive without Integrating Electronic Identity Verification?
It is impractical to say the company can only rule in this competitive environment by integrating the latest technology. If one person uses a motorbike and the other uses a car, the second one will win the race because the motorcar has more speed. The same is the case of businesses; if the company is not integrating the latest means, it can not win the competition.
Conclusion
Developed countries are especially implementing electronic identity verification. A remarkable rise in this profit is observed for the organization that is appropriately getting its service. As these scanners reduce the miscellaneous expenses of the company, less labor is required, and the trust of customers is also built through it. Legal authorities have made it essential to mitigate money laundering and discourage all kinds of data breaches.
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