Did you know that the document-centric identity proofing market is expected to grow from $2.14 billion to $9 billion by 2022?
Identity verification is, nowadays, one of the most important and critical parts of any business. This is certainly not the latest trend but has garnered importance recently as the number of fraudulent cases is increasing day by day. But still, some companies are not devoting their time to this field. So here we present to you an article stressing the importance of customer identification.
Here are some of the reasons that why should companies spend on identity verification:
To avoid fraudulent cases
Did you know that FBI registered a sudden rise in the fraudulent cases concerning unemployment insurance in this COVID 19 situation?
This is pretty common on normal days too. With fake identity, many users try to claim the insurance money, which results in negative growth of insurance companies. And not just insurance companies, but other sectors too. As the digital side of the business is getting more dominant, it is extremely important for the companies to have good identity verification software or mechanism to prevent the misuse of their facilities. Switching to modern techs like biometrics or retinal scan should be preferred as they are more reliable than the others.
Do you love humongous fines?
Oh yes!!! You heard it right. Government agencies, nowadays, are very strict about their norms and regulations related to customer identification. There is a complete list of hundreds of companies that are fined in recent years as they were not following the norms and regulations set by the government related to customer identification.
For instance, the Standard Charter was fined around $1.1 billion by US and UK authorities. The company was not following AML and KYC norms and was a serial offender of these regulations. This is a massive amount for any company who is just starting out and trying to make their company stable in this competition. No matter what your intention is, you will get fined if you don’t follow the KYC and AML norms of customer identification.
Image is everything
In recent years, we have seen a lot of data breaches by some of the most repute tech-giants, which have created a sense of mistrust among the customers. The only way to make them feel safe is to provide a multiple strata identification process so that they are dead sure that their data is in good hands.
You can refer to the iDenfy service for more details about the customer identification process and how does it work.
Living in the 21st century without a good customer identification setup is synonymous with foolishness. This is the demand of the situation and should be followed strictly to avoid any complications further in the future. We hope you install a good customer identification process in your product to make it more secure and reliable; till then,
Stay Safe and Keep Smiling!!