e-IDV is used to verify the identity of the clients online, and this is the initial step for compliance with the Know Your Customer (KYC). The entire task is done from the comfort of the home, and the organization can ensure they interact with the right person. It is essential to follow the guidelines imposed by the government; otherwise, the business can destroy its image. The company that faces cyber crime clients does not trust such organizations. The users select the business that keeps their information in secure hands.
How is Electronic Verification of Identity Performed?
The client’s verification is done by verifying their finger impressions, face, voice, and iris patterns. All this is compared against the stored templates in the database; if a green flag is shown, the customer is authentic; otherwise, a red flag is displayed. The user’s documents are also verified; they must submit their identity card, bank statement, and utility bills proof. The system ensures the customer has given the legal papers; the images are not photoshopped or faked. The businesses must onboard the clients after proper verification; otherwise, they must bear penalties.
Electronic Identification Verification Vs. Traditional Authentications
Electronic identity verification e-IDV does not require the physical presence of the user, while traditional verifications demand the existence of the user.
- The electronic verification checks are very accurate, and they can differentiate between the actual and manipulated documents. The advanced system can extract the user’s data; no involvement in the manuals is required.
- The process is convenient for the users, as they do not have to travel to the office. Their authentication can be done from anywhere; this saves the time and resources of the individuals. People living in distant areas were usually deprived of these facilities, but now they can perform their verification from the comfort of their homes.
- The e-ID can manage extensive data, and the system is not distracted by its environment. The companies do not require manuals for their authentications, and the machine learning solutions complete the process.
- The manual authentications could have been more reliable as the operators were involved. The employees even sometimes intentionally lose the organizations’ data for money. Humans are prone to errors. They get tired or distracted, and therefore, they can misinterpret information. The wrong data entry can cause heavy losses to the company.
- It is inconvenient for the clients, who must visit the company for verification. It is difficult for the office-going people to take leave from their busy schedules. The clients also have to pay for traveling expenses. Therefore, the users prefer something other than organizations that use traditional means.
- As the manuals performed the whole task, it was hectic for them to manage the entire record. The operators take time to verify the clients, as they have to conduct the entire task by themselves.
What Types of Businesses Use the e-IDV Services?
Almost all types of industries use e-IDV, and the government has made it essential for organizations to integrate the latest technology. In 2023, the average cost of data breaches was about $9.48 million in the US; in the Middle East, it was $8.07 million, and $5.13 million was lost by Canada. The increasing ratio of crimes has made it essential for companies to onboard the clients after proper verification.
Banks onboard clients after proper verification, and the client has submitted their complete data. The security of the financial sector is very crucial because it generates high revenue. The banking sector holds the personal information of the clients, and it is their core value to preserve the credentials of the companies.
Electronic client verification is used in hospitals as well; the patients and medical staff can be registered through the biometric solution. The doctor can get the medical history of the victims with just a single click, and they do not have to spend time on the patients to record their entire data. In this way, they can give them treatment and proper medication. The biometric solutions simplify the activities of the companies and reduce unnecessary documentation.
The electronic identity verification reduces the risk rate of the companies by monitoring the activity of their clients. The organization demands the entire record of the user and makes sure that they are not involved in money laundering. The client’s trust is also built when the companies fulfill their needs and provide services according to their demand. These scanners allow only verified clients to bypass the security; the entry of an unauthentic person is prohibited.