Digital identity verification is already changing the way certain businesses interact and build trust with their customers and how they are keeping customer data safe.
This is an innovative technological development that makes identity verification simpler, more secure, and more efficient.
Whether you are a business owner or a consumer, it is a great idea to understand how digital identity verification works. If you have not encountered it already, then you are sure to come across this type of verification in the future.
What is Digital Identity Verification?
Identity verification is necessary within several industries, but most notably within the financial world.
When someone is opening a bank account, applying for a loan, or going through any other type of financial process, security is of the utmost importance. The applicant must be able to verify their identity with the financial institution in question.
In the past, this has been achieved by presenting physical documents in person so that the relevant employee can verify the customer. The digitalization of this process involves methods such as facial recognition, presentation of digital ID documents, and biometric verification.
Why is Verification Important?
Being able to detect identity fraud is imperative for financial institutions, and this means that identity verification has to be effective and accurate.
When the identity verification process is simple, this creates a pleasant experience for the customer while still enabling the financial institution to adhere to legal regulations.
How Does Digital Verification Work?
The process of digital verification will vary depending on the specific identity technique that is being used.
Popular methods of digital verification include:
- ID document verification
- Knowledge-based authentication
- One-time passcode
- Biometric identity verification
Read on for more information on how each of these digital verification methods works.
ID Document Verification
Through the use of the camera on a device, customers can take real-time photos of their identity documents for authentication by the company in question. Artificial intelligence will determine the validity of a document and flag up any problems for further investigation.
This could involve a passport, driving license, or other similar ID documents.
This verification method will require the customer to answer questions about themselves. For example, these questions will usually relate to information on the applicant’s credit file during a financial process.
A one-time passcode may be issued to verify identity. This involves the customer receiving a code via text message or email. This will always be to a preregistered phone number or email address.
The customer will then be required to provide this code to continue with the verification journey.
Biometric Identity Verification
This process involves asking the customer to take a photo of themselves to prove who they are. This will then be compared to ID documents that are already on file to verify authenticity.
The biometric identity verification processes will be able to detect fraud during the identification process, for example, if someone is attempting to submit a photo of a photo.