Electronic Identity Verification, commonly referred to as EIDV, is an advanced method for confirming the identity of individuals. It typically utilizes a blend of public information and specialized private databases accessible online. In an EIDV process, customers provide standard identifying details such as their date of birth, address, or National Insurance number. This information is then cross-referenced against their digital footprint to ascertain their identity.
During an EIDV search, the AMLBuddy tool analyzes your customer's digital trail. If the supplied information aligns with the data identified, a match is established. However, if it fails to yield sufficient evidence to confirm the individual's identity, it may result in a partial match, or in worse cases, lead to no match at all.
Gaining easy access to credit reports is vital for managing personal and business finances. Here's a step-by-step guide to get started:
Performing electronic ID checks necessitates an element of trust between businesses and customers. It’s imperative for consumers to trust the security of the platforms or organizations that receive their sensitive information. Likewise, businesses need to have confidence in the reliability of their EIDV solutions.
This issue is especially pertinent in the banking sector, which has seen a substantial reduction in physical branches. Over 3,700 branches have closed since 2015, prompting a significant shift to online banking. This transition highlights the importance of maintaining trust, as electronic ID checks become vital for secure transactions in a digital environment.
To assist in this context, we have developed a Trust Barometer that monitors social media sentiments regarding major banks. This tool aggregates real-time mentions and sentiments to pinpoint which institutions are perceived as most and least trusted by their customers.
Interestingly, while nearly 80% of businesses perform electronic ID verifications, around 47% of senior decision-makers express some distrust in automated identity checks, with 21% outright skeptical about automation. Despite the growing trend towards automation, there remains a significant reliance on traditional processes, especially for Anti-Money Laundering (AML) checks.
EIDV has surged in popularity due to its rapid processing times and precise outcomes, particularly among financial institutions that must comply with AML regulations. Here’s who utilizes EIDV:
EIDV effectively fulfills the Know Your Customer (KYC) component of AML checks by affirming identities and analyzing individual financial histories for potential high-risk indicators, such as prior instances of fraud or financial crime.
Unlike manual ID checks, which necessitate physical documents, EIDV utilizes information extracted from various online sources, making it far harder to falsify an identity electronically. Proven effectiveness in preventing fraud strengthens the case for EIDV over analogue methods.
The limitations on customer interaction driven by COVID-19 have prompted many financial institutions to pivot from manual processes to EIDV. Industry projections estimate a compound annual growth rate of 13.1% for EIDV between 2020 and 2025.
AMLBuddy offers an unparalleled EIDV solution known as TripleCheck. This sophisticated process combines data verification, document validation, and facial recognition to ensure a comprehensive identity check that mitigates the need for manual processes.
TripleCheck consists of three crucial tiers:
This state-of-the-art solution can dramatically transform your KYC practices, preserving resources previously allocated to manual checks.
If you’re eager to explore the facets of Electronic Identity Verification and discover how your business can leverage its benefits, connect with an AML expert today.
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