Not-so-fun fact, it would take 80 humans over a YEAR of a company’s workforce to sign up 1 million new customers. In contrast, a digital verification system can make it happen in less than a week. Still not convinced about why digital transformation is the future? Let’s dive into the details.
Digital transformation has become increasingly popular among businesses these past several years. The interest (and, more importantly, the need) was triggered and spiked by many factors. However, one of the main was the global pandemic of COVID-19. With the ever-growing achievements in Artificial Intelligence and Financial Technologies, digital transformation has taken the world of onboarding processes by storm.
Digital identity verification is an intricate pathway that entails a set of complexities. One of those intricacies is compliance. Specific laws and regulations are in effect to ensure that the system does not overstep the boundary of privacy and personal information. GDPR (General Law on Data Protection) is one of them. Being GDPR compliant means a business must protect the processed personal data and privacy. Another safety standard is the ISO-27001 or SOC2 certificate. System certification demonstrates to regulatory authorities that collected data is entirely secure, stored according to a set of regulations and laws, and has adequate tools to address possible risks.
Benefits of Digital Conversion
The real benefits of going digital are automation, the feasibility of covering most territories, increased efficiency and effectiveness, innovation, and an all-encompassing KYC/AML process. In essence, the biometric identity verification process may take as few as three steps:
- The capture of ID document picture
- The capture of selfie pictures and liveness check
- The software checks the ID validity, cross-checks watchlists, performs liveness and similarity checks
If all the information matches, the customer will be safely verified and onboarded. Behind all this, a chain of complex AI-powered operations is taking place, automated capture of the user’s personal information, which goes through OCR & Data extraction and cross-checking watchlists to ensure minimal fraud risk. Then validity and similarity checks are performed, and finally, the process is ended by providing the report with risk scores and optionally with an approve/reject verdict.
Ideally, a digital onboarding platform should be a one-stop shop. You get all the goods in one place. Digital onboarding and KYC process should enable the business to have flexible deployment options and use the selected/necessary modules, which are cost-efficient. Customizable look and feel to fit the proper UI/UX, easily adaptable to business needs and processes, and supported by core platforms (Web/iOS/Android/API). Detailed and safe record of all data related to the verification attempt, including images, videos, documents, and system info.
One of the most significant advantages of digital adoption is ensuring safer transactions and remote onboarding for users and giving companies much-needed peace of mind. The solution should enable more profound levels of data analysis to unveil unforeseen vulnerabilities or unanticipated diversions from typical financial behavior. As a result, companies and organizations across industries will improve their bottom line, safeguard themselves from fraud and have satisfied clients who won’t have to leave the comfort of their homes to access desired services.
Challenges of Digital Technologies and Future Trends
The biggest challenge that digital processes, specifically KYC and ID verification solutions, the face is the lack of confidence from the side of the public. Companies should be actively campaigning in favor of conversion to digital practice. Incidentally, the process has kick-started by the struggle caused by the pandemic, giving a harsh reality check to businesses – to stay afloat, one must adapt to the inevitable change.
Digital trends are ever-evolving. At Identomat, our team is open to any challenge and task, so the best way for us is to create even more effortless, safer, and most efficient KYC processes.
To tackle many of these challenges, Identomat is championing a new approach to customer verification – “Cascading identity verification .” This new approach maximizes enrolment rates, resulting in revenue increase, resource optimization, and customer happiness. On the other hand, it minimizes fraud and is full-force regulatory compliant.
Another dilemma and an active subject of scrutiny is regulation in Defi – should it be present, to what degree, how will it affect the idea of decentralized finance, and so on. So, the workload for regulation compliance will grow. The key is to plan and be active and proactive in keeping up to date with regulations.
To conclude, digital transformation is an opportunity for all companies/enterprises to lead their respective industries, capture market value, and drive efficiencies across employees and services. Organizations have been moving their force and investing staggering amounts in their transformation programs these past couple of years. Moving services online will be the starting point for measuring the success of the digital transformation.
Bridging the gap between business needs and technology’s capabilities is essential as businesses engage in transformative initiatives. The big challenge for still-fresh digital change is regulation, not only for technologically advanced countries but for those who are only starting to adapt to the cyber world. Both will have to adjust rules to meet the whole yet secure capacity and opportunity of conversion. Though, one thing is for sure – the future is looking digital.
Zurab Kotaria
COO & Co-founder
Zurab has founded two successful technology companies. One of them is the Identomat end-to-end identity verification & KYC platform.
Using proprietary solutions identomat enables organizations across industries to verify customer identities remotely.
From 2003-2012, Zurab worked as the head of the ICT Department at the Ministry of Internal Affairs of Georgia, where he oversaw a team of 400+ developers and analysts. Under his leadership, the department developed and deployed several large-scale mission-critical projects: Georgian Emergency Response System, transport registration, driving license issuing system, CCTV Network, Border-monitoring, and administration system, and more. Various years advised the digital transformation of the national police in Ukraine.