What Is Identity Verification in Business?

by Rene Ralph

Going global in business means breaking geographical barriers and then allowing people to connect from anywhere at any time easily. Every day, serious business processes are digitized with the aim of allowing enterprises to delve into the international scene. In this digital age, with an increasing number of firms offering virtual services, a strong, authentic identification definitely holds some importance. Carrying out an online identification not only adds a competitive advantage to the brand but is necessary for the prevention of companies against exposure to fraudulent activities. That is where identity verification comes in.

Understanding Identity Verification in Detail

To understand the importance of identity verification in business, you should comprehend its definition.

By detailed definition, identity verification service refers to a broad range of services used to verify the authenticity of identity documents like licenses, passports, and nationally issued identity documents via documentary verification.

It also involves the verification of a document via documentary verification. Identity verification in business involves the verification of fields against independent, authoritative sources like credit bureau and proprietary government data.

Importance of Identity Verification

1. Time-saving

Decrease the entire operational costs on staff as well as real estate by making digital all the onboarding processes.

2. Enhanced User Experience

Online identification processes allow you to offer customers a seamless experience.

Rather than being physically present at the facility and having to wait in long queues, end-users can easily get the job done in just a few minutes. This offers customers a top-notch user experience while resulting in higher conversion rates for the company. The same has a direct impact on both the bottom and top line.

3. Customer-centric approach

Offering different options for identity verification gives an edge over the competitors while helping to indicate that the firm has a viable customer-centric approach.

What is in it for your customers?

The world is connected and demands that businesses offer their services anywhere. By allowing customers to identify themselves with a reliable process, you are allowing them to have:

  • Actual identity verification coupled with faster onboarding- Online identification enables the uninterrupted user experience to customers, especially when they are signing up for services offered.

It also allows them to have their identity verified. This results in quicker onboarding, which is a definitive win for your company and the customer.

  • Enhanced security- the peace of mind that customer data is handled securely with no elevated risks of fraud.
  • Saving time- allowing customers to acquire a product or service at any time or location, without the need for a customer support team.

In a study by Mckinsey, businesses have about 80 percent reduction in customer onboarding costs when a digitally enabled process is used.

Final Thoughts

There you have it. Identity verification services are used online as well as in-person to help verify people’s identities. The services are used in e-commerce platforms, internet forums, and wikis to help curb underage signups and spamming. Other industries using identity verification services are such as financial services, leisure, telecom, gaming, entertainment, among others.

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