What to expect from Booming Identity Verification Market in 2020?
Technologies hatched by fourth industrial revolution such as the Internet of Things (IoT), robotics, virtual reality (VR) and artificial intelligence (AI) are changing the trends in marketing and revolutionizing the way we deal in every sector. The same is the case with businesses. These revolutions have changed the way one does business. The fourth industrial revolution including Artificial intelligence augmented reality, robotics has bought a lot of digitizing on the table. This automation has eased many processes that used to take days previously but now can be done in the blink of the eye. Identity verification is one of those procedures that can now be done digitally saving a lot of time and effort. It involves a systemic change across many sectors and sides of the business.
AI-powered Identity verification solutions include biometric verification, digital document verification, 2-Factor authentication, and age verification that help fight many frauds in the business sector. The identity verification industry is expected to reach USD 18.12 billion by 2027 as it grew steadily in recent years. Authenticating identities is important for financial institutes globally. To protect a business from cybercrimes, money laundering, account takeover, and identity theft frauds it is mandatory to have a sound identity verification solution integrated into the system. Financial criminals are becoming more sophisticated with the passage of time their game is getting strong. Identity authentication of customers and completing due diligence has never been more difficult or more important.
What is Identity Verification- A Deep Dive:
Customers and businesses communicate digitally in this digitized world. In this busy world, no one has time for face-to-face meetings or direct contact neither it is considered as a suitable option. Manual authentication trends for physical confirmation of an individual are long forgotten due to the time they take. Digital identity verification technology is now used to verify the individual by facial recognition technology, address verification, document verification done digitally in seconds. The significant increase in digital fraud has caused the loss of millions for individuals and businesses. Businesses are always the easy target of cybercriminals and fraudsters. Customer identity verification KYC as well as business verification KYB is essential to save businesses from intruders and scammers.
Types of Identity Verification Solution:
Following are the types of digital identity verification solutions:
Biometric Verification Solutions:
The biometric authentication system is designed to perform due diligence on the customers by using one type of biometrics – face verification. Facial verification scans the face in real-time and detects unique facial features through a 3D depth perception technique.
The liveness detection system captures minor facial movements to ensure that an original person is making the verifications. Liveness detection ensures that a paper backed or photoshopped image is not used for verification. Facial verification delivers highly accurate results and that too swiftly, within seconds. It makes fraud prevention and KYC/AML compliance quite easier for the people.
Digital document verification scans the document picture using OCR technology, the information can be taken from the document. It also authenticates if the document is real and original. By this customer’s authentication can be performed without putting them on a frustrating wait of days.
Establish proof of residence for verified deliveries and user identity. It scans utility bills, bank statements, etc by using OCR data extraction.
Verify authorized users remotely through their mobile phones. It provides quick remote user authentication by sending Personalized code fro verification. It is an auto-code generator to provide user access.
KYC and KYB Checks:
KYC is essential for businesses and organizations as per regulatory authorities. KYB is also important when dealing with other businesses for the partnership to make sure the other business is a valid company and not a shell company. These days there are some serious digital security concerns for all sorts of businesses because of scams like digital fraudulent activities, data breaches, and ID theft are on the rise and abusing the systems easily. Such activities are translating a significant revenue loss for the businesses that fall victim to these criminal activities.
AML screening is a process that defines the role that how a company monitors accounts, detects and reports financial crimes to relevant authorities. AML screening tackles intrinsic money laundering risks the company faces or can face. Customer Screening for Anti-Money Laundering (AML) is the aim of completing due diligence to prevent and deter money laundering, terrorist financing, and other financial crime and fraud. It ensures that no one from the PEP list or with criminal background is becoming part of a business.
Factors fueling the growth of ID verification market:
Following are the factors that are greasing the wheels of digital ID verification market:
Increasing Data Breaches:
It will not be an exaggeration to say that 2019 was a year of data breaches. During the first nine months of 2019, around 7.9 billion records have been compromised according to Risk-based Security Reseach and are expected to be 8.5 billion in the whole year. As per statistics, these numbers are up 112% as compared to mid-year 2018. To mitigate the risk of data breaches it is crucial for any business to give access to the right person only to the sensitive data.
According to the Bank Secrecy Act (BSA) act and the patriot act 2001 KYC is mandatory for banks to know who they are dealing with. The same goes for AML directives for combating the financing of terrorists (CFT) and to hinder money laundering. KYC and AML checks are necessary for financial institutes to perform. It provides a win-win situation for both businesses and customers by filtering high-risk customers for businesses and verifying customers in real-time.
Enhanced customer experience
Digital ID verification solutions eliminate the annoying pile of paperwork making the business one step ahead and more customer-friendly. Customers will appreciate your attention to safeguarding their identity, building rapport, and brand loyalty that too in real-time. Replacing traditional checks with face verification saves a lot of time and effort. You do not need to memorize or change passwords since the work is being done by your biometrics in lesser time.
Increased Security for Rising Scams :
It’s more important than ever to verify the identities of customers due to an increased risk of terrorist funding and money laundering in this digitized world. ID verification technology is a great tool to instantly verify the identity of any visitor quickly and easily, making both customers and employees feel safer. It fightbacks forgery like account takeover, fake identity, identity theft, credit card fraud, etc.
Easy Integration in System:
Identity verification solutions have another advantage for businesses and that is it can be easily integrated into the system. No additional hardware is required at times for these verification solutions such as for face verification technology. This provides businesses with an edge providing another reason to adhere to this technology.
Taking into account these problems, every business wants to protect itself from fraudsters, saving them time and cost for fulfilling the orders of customers who don’t exist, henceforth preventing them from accessing the business and carrying their illicit activities. The use of digital verification services is a safer and cheaper solution in the long run with real-time verification results. The ID verification and authentication solutions are quite vigilant solutions for businesses since they make it easy for organizations to achieve a secure customer base while enhancing the customer experience as well. These are the reasons why businesses are adhering to these technologies making the ID verification market boom tremendously.