Understanding Electronic Verification Systems for Businesses: A Comprehensive Guide to Benefits Offered
Electronic verification systems comprise some of the most advanced security systems in the world. Starting from an era where people utilized the effectiveness of jewelry, stones, and physical marks on the body to identify one another, today we have advanced digital mechanisms for recognizing other people.
Understanding the limitations of the human mind and with advancing technology, today, we have developed systems that take only seconds to identify a human face.
Electronic verification of identity: Exploring the advanced systems
Electronic identity verification systems function by recognizing specific features that are unique to every individual.
For specification, we can separate electronic verification systems into two common types i.e., biometric EIDV and document verification.
Biometric E identity verification solutions
Biometric electronic verification refers to the utilization of biologically unique features. These include fingerprints, retinal scans, facial verification, etc. Utilization of biometric electronic verification systems requires advanced technologies that can execute deep analyses for identification. For example, retinal scans require specific retinal imaging technologies such as optical coherence tomography, scanning laser ophthalmoscopy, etc., which are followed by pattern recognition systems to correctly match retinas. Fingerprint scanners also use pattern recognition software. Facial electronic verification systems are relatively more complex in the sense that they aim to replicate the facial recognition abilities of the human brain. These utilize advanced artificial intelligence, machine learning, and deep learning systems.
Document analysis for EIDV
Broadly document verification refers to verification of any document issued by the state or any other entity. These documents have specific numbers linked to databases of the issuing authorities. For example, social security numbers, ID numbers on passports, tax IDs, addresses, etc.
Document verification is essential for systems where the legal identity of the person is required. It is crucial in testing for forgery or identity theft in cases where ID documents are stolen, or some data needs to be verified.
Boosting Business and Consumer Benefits Through Electronic Verification Systems
With most businesses adopting digital systems for their processes, electronic ID verification has become crucial. Whether security, legal compliance, cost-effectiveness, or improved customer experience, electronic verification systems offer plenty for businesses as well as their consumers.
Legal compliance – KYC and AML regulations
Implementation of electronic verification systems and effective IDV processes is a requirement for most businesses as per the law. Businesses dealing with financial matters such as those within the banking, fintech, and cryptocurrency domains as well as those within the healthcare industry are specifically targeted by these laws.
The laws applied in these situations mainly include KYC and AML regulations. AML laws are essential for businesses that are at high risk of being involved in money laundering activities. For healthcare businesses, e identity of patients stored in digital databases needs to be verified to access correct patient history, and to avoid misdiagnosing and prescribing wrong medicines.
Protection against data breaches and financial crimes
Security is another crucial benefit that businesses can access by implementing ID verification processes through specialized electronic verification systems. ID verification can help ensure that no one with a false identity onboards the business. Besides avoiding fraudsters on the website, this can ensure that in case of a financial crime or a data breach, the culprit is identified immediately.
Setting up electronic verification systems for employees is also beneficial for security. Keeping a track of employee activity, and automating attendance and entry- and exit-timings are just some of the benefits that make employee identity verification exceptional for any corporation with regard to security.
Improved customer experience – Simple and quick processing
Electronic verification systems while beneficial for executing tough and tedious tasks also do not burden the user. With electronic verification systems, users are put to ease by the system asking them to perform the simplest of tasks and then running everything on the backend, taking only seconds.
Facial verification systems ask users to upload selfies or live webcam shots. Most document verification systems ask for documents as well as live pictures. This data can also be verified by connecting the phone number of the user through an electronic id check. This is a 10-digit alphanumeric code that gets sent to the registered phone number of a user. Electronic verification codes help reduce customer distress by offering quick verification and login solutions as well as options to reset passwords.
Besides being simple and easy for the customer, digital identity verification processes also help build customer trust in a business improving long-term business profits.
Cost-effectiveness – Avoiding fines and lawsuits
While seemingly of hefty costs, electronic verification systems can be of great effectiveness for businesses when it comes to considering finances in the long term. These systems and the solutions they provide offer huge security to businesses against financial crimes. Moreover, while identity theft and data breaches may seemingly put customers at risk, for businesses they can mean huge lawsuits and fines. For example, Instagram was just recently fined a total of $405 million by the Irish data privacy authorities on account of a breach of the European Union’s General Data Protection Regulations. These factors make the implementation of electronic verification systems crucial for any business that understands the importance of moving with the advancing technology.