Industrial Use Cases Of Digital Identity Verification Services

The identity that is specific to individuals, should be protected at any cost. No one should be given this right to use their credentials to get benefits. It is your duty to protect your identity and interact with businesses that have the credibility to protect your sensitive information. Responsible businesses also fulfill their duty by trying their best to protect customers’ data. Regulatory authorities are developing laws for protecting businesses’ rights and enhancing customer experience. Digital identity verification services are helping enterprises onboard legitimate customers.

Digital Identity Verification Services

Since the world has become digitized and everything is stored in online spaces, businesses now have to be efficient to protect their customers’ information. This can only be possible when organizations employ sophisticated verification services in their system. The identity verification system ensures that the firms are interacting with genuine customers. An efficient process that enables companies to onboard legitimate customers is a great way to keep the fraudsters away from them. 

Manual vs Digital Identity verification services

Before the arrival of online verification, companies used to verify their customers manually. This was a time taking process and was very inconvenient for the customers as well. They have to wait in long lines at the offices to get themselves verified. Human resources being involved in the process also enhanced the possibilities of errors in the process. But as the internet has blessed the life of users, the identity of consumers can also be verified digitally. Digital identity verification refers to the process of verifying the online identity of customers. This process eliminates fraud and ensures the authenticity of its users.

Identity can be verified mainly by the two methods, the first is through the identity documents and the second one is by facial recognition. ID documents and facial recognition both are authentic methods and are utilized by companies depending upon the nature of their work and the purpose of why they are doing it.

Industries Utilizing Digital Identity Verification Services

Almost every digital entity verifies its customers at the time of onboarding. Following are the companies that are users of identity verification systems:

1.    Gambling

Considering the increased revenue for e-gaming platforms in recent years, this industry is a favorite for both merchants and fraudsters. The number of gamblers is increasing with each passing day because of the pleasures and the instant money-making abilities of the platform. Due to its attractive tactic, minors can also get attracted to it. It is the responsibility of vendors to restrict children from coming to their platform and they can accomplish this with the help of identity verification services.

Not only minors, but fraudsters can also come to gambling sites because this way they can easily roll their money obtained by money laundering. To stop such illegal activities from their platforms, owners of the gambling sites must verify customers to ensure they do not let any launderer become part of their platform.

2.    Alcohol

Verifying customers’ age before giving them access to purchase alcohol online is also a liability of owners of age-exclusive websites. By using digital identity verification services, alcohol sellers can ensure they do not sell the prohibited drug to any underage which can affect its health.

3.    Banking Sector

Banks and other financial institutes are more prone to identity fraud than any other industry. There is only one way to stop it and that is employing digital identity verification of customers. Users at the time of account opening are verified carefully so that they do not become trouble for businesses afterward.

Regulatory Compliance

Policymakers have designed laws for businesses to comply with Know Your Customer compliance. KYC laws ensure the businesses have streamlined flow in their workings. When businesses would use digital identity verification services to authenticate their customers they eliminate identity fraud. Customer trust can be build when companies fulfill their demands and hope of protecting their data carefully.

Digital identity verification services being done with the help of technology and reducing human error is a cost-effective process. Companies that spend a huge amount of money to pay their employees on a monthly basis can cut this amount by spending on software for once. It is safe to say that an online identity verification system is cost-effective for businesses.

Conclusion

Unlimited benefits that businesses enjoy by being on digital platforms, one of them is verifying their customers by employing digital identity verification services. Manual processes that used to take months and were annoying processes for customers and businesses were replaced by digital processes that can be done in real-time. Banks and financial institutes are getting benefits from online identity verification systems. Another industry that is a big user of identity verification is the digital age-restricted industries that restrict minors and fraudsters to become a part of their system.