The verification of identities is no longer a straightforward process as to how it was once before. Unlike traditional ways, which involved the manual verification of identities through a laborious inter-departmental and data cross-referencing manner. In today’s digital and information-centric age, that identity verification has evolved into what we term as Online IDV or ‘Online identity Verification’
Despite the rapid advancement in technology, some of the best Identity verification serviceproviders are facing hurdles with online Identity Verification. Much to the surprise of how much IDV has improved, other factors have come up that prove to be a challenge. These include Online Age Verification, disputes with different use cases and industry applications, Integrations and new economic concepts that are buzzing traditional setups. Let’s have a look in detail on how online IDV is being challenged.
Sharing Economy and Potential Shortfalls
Not all Online Identity Verification is Frictionless – as it states, just the fact that identity verification is online does not dictate it’s effectiveness. This aspect of friction varies from provider to provider and how efficient their internal KYC processes are, ensure the effectiveness of the solution. This friction depends on which technology is used, how it’s incorporated and used to the best of effect. While some IDV operators create a solution and keep stagnant, the others continue to innovate and improve on existing capacities until optimum capacities are reached. These IDV’s take into account customer behavior/ interactions with the solution. Customer satisfaction is assessed through usability percentage which includes navigation and service utilization.
5 Tips To Improve Your YouTube Marketing Strategy
There is no standard online Identity Verification – with multiple providers comes multiple definitions of online identity verification. By definition, we do not mean the literal one. We refer to what is included in the process. Different providers will have different variations for online IDV, what fluctuates each providers inclusion of internal services are their respective use cases, varying client requirements, and different application scenarios. Where one provider will have standard Identity Verification, the others might include Age Verification, additional checks associated with risk, and any other applicable risk assessment based Due Diligence measures. Considering this aspect, there is no standard guideline on ‘Online Identity Verification’ and each provider may include other sub-services/components to amplify their suite. This creates a potential problem, adding complexity in integrations and further customizations extremely difficult, if not impossible.
Rapid process changes within online Identity Verification –
a 20+ billion market is bound to attract additional IDV providers and is not going to be left with existing providers. As new entrants make space for themselves in the highly contested market. New use cases, industries, and market applications are seen by these start-ups. In order to continue growing new segments of the market and economy, traditional online IDV processes are changed to match the requirements of new industries that they will be implemented in. There is no standard guideline on which industry is online identity verification limited to. As new applications continue to sprout, there corresponding privacy and guidelines see continuous change. In order to comply with these inconsistent changes, IDV processes need to be updated regularly. IDV companies are dependent on the frequency of policy changes that come from businesses and newfound industries and accordingly implement the new changes. As non-face to face applications for verifications grow, the efficiency of such IDV providers is dependant on how quickly are the requisite changes to the authentications processes done. Especially for cross-border transactions and intra-boundary transactions from the sharing economy or peer-to-peer lending. Verifications are complicated by the lack of identity-proofing standardization.
Regulatory requirements add complexity
–As different sectors see continuous growth, including the sharing economy and peer to peer lending. The requirement of data privacy and security is an all-time high. Especially for industries that require PII more than just the basic of Name, DOB and Address. As more IDV providers are holding sensitive information, regulations are questioning the moral obligations of IDV providers. In order to ensure they implement best practices and are up to date with the latest security guidelines, IDV companies need to be compliant with the requisite regulations. These regulations act as a minimum standard that highlights a providers proficiency in implemented practices. Even though these might be mandatory, they add another layer of complexity for the providers. As these guidelines might require changes in how IDV processes are carried out, any changes will require dedicated resources in time, money and manpower to be used.
As different sectors see continuous growth, including the sharing economy and peer to peer lending. The requirement of data privacy and security is an all-time high. Especially for industries that require PII more than just the basic of Name, DOB and Address. As more IDV providers are holding sensitive information, regulations are questioning the moral obligations of IDV providers. In order to ensure they implement best practices and are up to date with the latest security guidelines, IDV companies need to be compliant with the requisite regulations. These regulations act as a minimum standard that highlights a providers proficiency in implemented practices. Even though these might be mandatory, they add another layer of complexity for the providers. As these guidelines might require changes in how IDV processes are carried out, any changes will require dedicated resources in time, money and manpower to be used.
Coming to the End
As much as online identity verification is growing, the inevitable challenges are being faced by some of the best Identity verification service providers in the industry. For any provider, the current management of identity and its online age verification services, are proving to be a handful in diligence. You should seek a provider that addresses all of the concerns highlighted above and manages them adequately. Where the security of sensitive data is of prime importance and priority to the provider, help you ensure compliance, keep user data and KYC up to date.
