The world is getting smarter and the consumers are becoming increasingly impatient, especially in today’s digital age. With technology innovations happening every day, customers are looking for services which require less time and minimal effort on their part. In this technologically advanced era where users can perform and manage their daily tasks with just a few clicks, visiting branch offices for opening a bank account seems unnecessary.
With the ever-tightening regulations and increasing concerns over AML/CFT, banks are now more cautious than ever in their KYC processes. Traditionally, this process involved physical ID/Document verification in which the applicant had to personally visit a branch office and present the relevant documents so that a bank representative can verify the applicant’s authenticity. This practice was not only expensive and time-consuming but also hampered customer experience as they as had to wait for days before getting approved for a new account.
But the KYC process has finally moved to the next stage where customers no longer have to attend face-to-face meetings or visit a branch for authenticating their documents. Financial institutions can make use of various web-based and mobile-based applications to verify an applicant’s identity.
How the digital ID/document verification process is carried out
Electronic identity verification (eIDV) enables banks and financial institutions to remotely verify a person’s identity through digital means. Unlike the age-old method of physical verification, which required the physical presence of both the applicant and documents like passport, license, utility bills, etc., eIDV checks various consumer data points such as name, date of birth, address, etc. The data is checked against a pool of databases such as government agencies, credit bureaus, telephone/utility records, public data, watch lists, cyber-data, etc., in order to verify an applicant’s legitimacy.
With the increasing demand of eIDV, the market has witnessed various technological breakthroughs applied in this space such as biometric-based verification, machine learning, blockchain, video-based and behavior-based verification.
At LTP we have always had a keen interest in exploring the developments in the eIDV space. As a part of our recent study, we took a deep dive into the nuances of digital ID verification, covering the various aspects and depth with which ID verification is conducted by companies.
As part of our research, we analyzed the offerings of some of the most exciting players in this space and evaluated their solutions based on our proprietary evaluation framework.
The objective of this study was to understand the best player in the digital ID verification space, with a special focus on the depth with which they conduct the verification processes.
MEDICI research evaluation parameters and the evaluation framework
Some of the important evaluation parameters for analyzing the players in this space include:
● Number of partnerships across geographies for ID/doc verification: It refers to the number of partnerships that are formed by the service providers for conducting ID and document verification processes. It signifies the global coverage of these companies.
● Degree of customizable solution: The criterion refers to what extent a user can customize the verification rule set as per their business needs. It enables the users to choose the type of method and the data source that they require to conduct ID verifications.
● Single interface flexibility: It indicates the ease with which customers can integrate the platform with their core business systems as all the services are provided through a unified platform.
● Verification depth of data based on third-party database: Data quality is one of the most important aspects for successfully verifying a customer’s identity. Types of common data include credit bureaus, property records, government records, watch lists, etc. These parameters basically signify the depth with which ID verification is conducted by these companies.
MEDICI evaluation framework
The full framework can be found in the report – download it for free.
Careful evaluation based on proprietary MEDICI framework revealed Trulioo, Canada-based provider of instant electronic identity and document verification services for 4 billion people in 60+ countries, to be the leader among the players providing ID/document verification services evaluated in the study.