The ability to verify someone’s identity online has a range of benefits to businesses, including ensuring that only honest users are on boarded and that rigid compliance measures are properly adhered to.
Although it might sound like a daunting and time consuming task, the good news is that checking someone’s identity can be done accurately, efficiently, and in ways that won’t negatively affect your conversion rates.
Why should you check someone’s identity online?
There are many different situations where customers may use certain forms of identification as proof they are who they are presenting themselves to be, including when they are attempting to purchase age-restricted products or services, when applying for official certification, or when signing up for a financial product such as a credit card or loan. Ultimately, checking the identity of your customers can have a range of benefits, including:
– Preventing fraud
– Complying with anti-money laundering laws
– Streamlining the efficiency of your onboarding process
– Complying with the know-your-customer guidelines
There are countless sectors that regularly use AML ID verification to ensure the correct steps have been taken to prevent money laundering throughout onboarding and the payment transaction processes. There are several levels to this form of verification, from light-touch compliance all the way up to more comprehensive data sources, including the UK sanctions list, global law enforcement wanted lists, and regulatory enforcement actions.
How does identity verification work?
As this article highlights w2globaldata.com/an-idiots-guide-to-aml-kyc-id-verification/, the general mechanics of the identity verification process are fairly straightforward.
Data-led journeys and document-led journeys represent two routes businesses can take when confirming the identities of their customers. The former leverages national and international datasets, whereas document authenticity provides you with the reassurance that documents you have been given by your customers are authentic.
How long does identity verification take?
As technology has improved, the identity verification process has become significantly more efficient over time. In most instances, it is possible to verify a person’s identity within seconds, allowing customers to complete their process without the journey flow being disrupted for an extended period of time.
How does identity verification affect conversion rates?
Concerns relating to conversion rates are one of the leading reasons why businesses are reluctant to integrate identity verification measures into their customer journey. However, when they are correctly implemented, ID verification shouldn’t affect conversion rates at all because the verification process is completed in real time.