The traditional identity verification methods used to perform by identifying an individual in-person if he/she visits a physical branch of some bank or financial institution. Gone are the days in which manual identity verification used to take hours and customers had to wait in the queues for their turn. As technology is getting advanced with the passage of time, the customer demands and need for technology adoption are changing.
The manual operations in the banking industry include account opening and manual identity verification in which the individual’s identity is verified against some authentic piece of evidence that could be an ID card, driving license or a passport. These government-issued identity cards act as an identity proof after which an account is created.
The traditional identity verification process is time-consuming and frustrating for the customers. The people living in the digital world, therefore, prefer doing digital banking in which the process of account opening and identity verification can be performed within seconds. Digital inclusion can help financial institutions increase financial inclusion by providing efficient services to customers online. The penetration of people in the digital world has made it compulsory for businesses to create an online identity.
How technology helps banks ensure robust identity verification?
Technology is playing a significant rile in digital as well as financial inclusion. Here comes the fintech industry that is revolutionizing the banking sector by providing innovative technological solutions. Digital banking has made it convenient for the industry to open an online account without physically visiting the bank branch and waiting there for hours. Through video KYC, online identity verification can be performed in which the user would need to show u the identity document and face.
OCR in Document Verification
The document verification process employs Optical Character Recognition (OCR) technology through which the information from the user-uploaded document will be extracted automatically by identifying the template of the document. The extracted information will be verified along with the document spoofing checks to make sure that the document is not photoshopped or tampered. This is done by taking advantage of Artificial Intelligence and Machine Learning technologies.
Liveness Detection in Biometric authentication
During the process of online identity verification, biometric authentication, just like banks can be performed using facial biometrics. The banking system will capture a live picture of the person or during the Video-KYC face recognition process that will be performed in which the live captured will be verified against the one present on the document. The liveness detection employed by facial recognition technology ensures that at the time of verification, a person is physically present. In the process, minor facial movements of a person are detected such as blinking of an eye, lip movement, etc.
Both of these processes are used together for online identity verification. The information extracted from the document and biometric authentication is done to identify an individual online to deter the risk of fraud.
To conclude, the innovative identity verification solutions are available today that help the Fintech industry promote the objective of financial inclusion with highly optimized and secure digital services. The adoption of a technological solution in the banking industry has become higher worldwide, the reason is the penetration of the world in the digital era. The processes that manual identity verification used to take hours to do can be performed in seconds in the digital world while ensuring high-level security and enhanced user experience simultaneously. Also, Read – QuickBooks Error 30134