5 tips to improve your customer identity verification process

Customer identity is of utmost importance in this digital-first economy. With a growing tide of fraud increasingly sophisticated, the situation turns grim with each passing day.

A robust verification process is a must-have whether you are onboarding new users, safeguarding sensitive data, or wanting to prevent fraud.

Here are five tips to take your customer identity verification process to the next level.

1. Leverage AI and Automation to Speed Up Verifications

When a business has to deal with a long queue of customers, manual identity verification processes can be ineffective, slow, and riddled with mistakes. These processes become much faster and more accurate with artificial intelligence and automation. AI algorithms can analyze a document, validate information that concerns a customer, highlight inconsistencies, and give reports within seconds to lessen delay and human error.

Automation smooths the process of a customer journey as well. For example, forms will be pre-filled with data, and onboarding will be streamlined when automatic checks go through, making it all much quicker. Companies using AI-powered solutions reduce operational costs by enhancing customer satisfaction, wherein customers can go through easy and swift identity verification seamlessly.

2. Employ Advanced Document Scanning Tools

Document scanning tools prove very helpful for those businesses that want to enhance their verification process. It allows for the extraction of critical information from various documents with high accuracy through the use of optical character recognition (OCR) technology, such as name, address, and date of birth.

Document scanning solutions are crucial in modernizing or streamlining identity verification. Integrating a drivers license scanner SDK into your system enables the instant verification of customer credentials. This technology provides security in data handling and reduces the chances of manual data entry errors.  

3. Incorporate Biometric Authentication

Biometric authentication is gaining rapid momentum because it offers a balance of security and convenience. Unlike passwords or PINs, biometric data relies on fingerprints, facial recognition, or voice patterns that can only be uniquely identified within a single individual.

The process is greatly simplified for customers, while another layer of security is involved with biometric verification. For example, users can confirm their identities with a face scan or fingerprint touch in under a second rather than having to remember complex credentials.

4. Implement Multi-Factor Authentication

MFA provides another layer of verification in the present scenario by incorporating various authentication modes. The multi-factor concept allows authentication other than a single-factor one trusts, like a password. You could have layers such as OTPs, Biometrics, or device-based authentications.

This multi-layered approach makes it difficult for even one form of authentication breach to result in unwanted access. MFA is vital in industries that handle sensitive, customer-provided data, such as banking and healthcare.

A firm can ensure the safety of customer data, boosting satisfaction while providing freedom of verification without any disturbances.

5. Stay Compliant with Global Regulation

The compliance of an identity verification process with major global data protection regulations such as GDPR, CCPA, and KYC depends upon businesses responsible for transparent treatment of customer data. Non-compliance means legal consequences and loss of trust by customers in that brand.

The business will use tools and processes that conform to regulatory standards. The verification protocols should be changed regularly, and audits must be carried out to keep your operations compliant with current legal requirements and as a sign of your concern with customer information security.

Endnote

Improving customer identity verification is essential to ensure sensitive information does not reach the wrong hands, while fraudulent activities will also be reduced. Consider boosting the security measures by introducing modern tools such as biometrics and MFA.

While these efforts save time for your business, they also ensure the customers’ experiences are great.