How to leverage live identity verification in automated workflows

Katherine Manning June 22, 2022 Banking

live-identity-verification-workflow

Live identity verification is a process that uses real-time data to confirm the identity of a person or entity.  Most commonly, LIV integrations are used to verify the identity of a person or entity during an account opening process. If you’re looking to make your financial institution’s LIV operations more efficient, utilizing LIV within automated workflows is a great way to achieve end-to-end process automation. 

Live identity verification is the key to mitigating risk

With the rise of digital workflows, manual verification is no longer enough. Speed and automation are now vital to removing friction in customer experiences. It has become crucial to integrate identity verification into automated workflows. This allows businesses to operate at scale while preserving trust and operations. To make this happen, you need a solution that fits your business needs without requiring significant changes in your technical infrastructure or customer experience.

Live identity verification for automated workflows with commercial account opening and KYC compliance

Live identity verification is required for commercial bank accounts, and it’s a great option for KYC compliance as well. It’s also a great way to improve your customer experience and provide more value-add services like mobile banking.

It all begins with meeting your customers where they are—and where they are right now is on their phones. That’s why it’s helpful to offer live identity fingerprinting for automated workflows with commercial account opening, so you can meet your customers where they need it most: Their smartphones or tablets.

Suppose you face challenges when it comes to customers whose identities need to be confirmed as part of KYC compliance procedures. They must manually review documents from each applicant before they can be approved for commercial account opening. The process is time consuming—and costly—both for your bank and your customers who must wait days or weeks for their accounts to be opened.

In this scenario, live capture is an ideal solution. With the ability to automatically and instantly verify the authenticity of documents with live image processing, live capture can help meet your commercial account opening and KYC compliance requirements.

It’s also a good option for AML compliance because it ensures that all employees involved in commercial account opening have been verified as being who they say they are before they begin working on applications. And because live capture takes place immediately after an applicant submits their information, you’ll always be able to tell if something suspicious has happened during the process.

Build trust into your authentication process

You can also trust your users by building a trusted identity verification process into your workflow. Suppose you are using a specific provider to handle the authentication process for you. In that case, you can be sure that any user authenticated by them has been verified to be who they say they are and have access to the data they need. Your employees will feel more confident about their work because of this added trust and peace of mind.

Determine the right level of verification with identity scoring

Identity scoring is the process of determining a person’s risk level based on their identity information. It’s an effective way to determine whether or not you should move forward with manual verification, automated verification, or skip the step entirely.

Before skipping this step, however, remember that identity scoring isn’t meant to replace manual or automated checks. Instead, it helps inform further decisions about where to put your resources and what methods would be most effective. 

For instance: if you know that a person has previously provided false information on a form, then it makes sense for your system not to rely solely on automated checks to verify their new details (which may also be false). In this case, it would make sense for you to do an additional assessment by calling them directly or sending them an SMS message before moving forward with any workflows to ensure that they are who they say they are.

Standard features and types of live identity verification

Think of biometrics, artificial intelligence, and machine learning. These technologies are undoubtedly complex and ever-evolving. But as intimidating as these buzzwords may seem, they are tools that help companies verify the identities of their users. And this is becoming increasingly important in the digital age, given the frequency of identity theft and fraud. 

Here are the standard features and types of identity verification systems (and why they matter):

Machine learning identity verification

One of the common features of machine learning IDV is its ability to adapt and learn based on experience. This means that as more people go through the process, it gets better at recognizing which faces belong together and which do not. It also learns from other data points such as demographic features.

Because this type of technology works in real-time without any human help required, it is often used for access control applications where many users use the same system throughout the day (such as in a corporate office). This means that instead of having someone sit down each day to add new people’s faces into their system or update existing ones, they can rely entirely on machine learning to do so automatically.

Biometric identity verification

Biometric identity verification is authenticating an individual based on their unique biological characteristics. These characteristics include fingerprints, voice patterns, facial structures, hand geometry, and iris images.

Because another person cannot replicate biometric data, it has been considered one of the most secure methods for identifying individuals.

Artificial intelligence identity verification

We’ve all seen the headlines: AI will take over the world. At least, that’s what the Internet tells us. But what does it mean? Artificial intelligence (AI) is a type of machine learning. Machine learning is a computer program that can learn from experience and make predictions based on previously gathered data. 

That may sound simple enough—but as far back as 1956, when Alan Turing published his paper “Computing Machinery and Intelligence,” our definitions have been muddled by philosophical confusion about whether or not computers can think like humans.

The truth is, AI has been around much longer than you might think: Your smartphone uses AI every time you ask it for directions or schedule an appointment with Siri; Netflix uses it when recommending movies based on your viewing history; Amazon employs it when suggesting items you might like, and Google Search uses it when understanding natural language queries typed into search boxes.

Steps to integrate live identity verification into automated workflows

Integrating an identity verification service into your automated workflow can be simple. But first, you need to know which service is best for your business and what essential features are most important.

Step 1: Choose the Best ID Verification Service for Your Organization

There are many options, and they each have pros and cons, so make sure to do some research before making your choice.

  • Make sure the service has a variety of options for identity verification: Some services only provide data from one source (like government databases), while others have access to multiple sources (like social media accounts) and more sophisticated data such as “vouched-for” information. If your business requires a certain level of verification beyond what one source provides, seek out an IDV solution with diverse access points for its users—and don’t forget about integration into your workflow.

Step 2: Basic ID Verification Features Worth Considering

The second step in the process is to assess your organization’s current level of identity verification and determine which features you would like to implement. The following list provides a summary of some essential elements worth considering:

  • Verify ID documents
  • Verify the identity of the user (or device)
  • Verify the location (IP address) where they are accessing your application or website from
  • Verify whether they are using an authentic application or website as opposed to a fake one designed by hackers to capture sensitive information
  • Verify if their operating system has been compromised by malware that could be exposing critical data

Step 3: Integrate ID Verification into Your Workflow

  • Choose a service. To begin, you’ll need to choose the best ID verification service for your business. Many options range from manual, labor-intensive services to fully automated solutions. Some basic features worth considering include:
  • Face authentication: This technology allows users to verify their identities with facial recognition software that analyzes vital points in their faces and compares them against an existing database of images.
  • Voice identification: This feature uses AI-powered speech recognition software to compare an individual’s voice over the phone with a current database of known voices (think Siri or Alexa).
  • Fingerprinting tools: These tools use biometrics hardware devices that can scan fingerprints or retina scans and match them against pre-existing databases of known fingerprints or retinas—for example, those belonging to security personnel at airports or border crossings.
  • Other methods include behavioral analysis (e.g., comparing how someone holds their smartphone), location verification using GPS coordinates and time zones (e.g., checking if someone is at home during working hours), etc.—there are several other possibilities too.

Integrating a live identity verification service into your automated workflow can be simple.

Integrating a live identity verification service into your automated workflow can be simple, as long as you choose the exemplary service and consider its features.

Here are the steps:

  • Choose the right service for your needs. You’ll want to find a provider that offers multiple types of checks and has an API available so that you can integrate it into your automated workflow.
  • Consider the features offered by each type of check they offer—for instance, some providers offer more than just SSN verification while others have no Social Security number (SSN) checking capability—and make sure they match up with what you need before signing up with them.

You can use these simple steps to get started and ensure that all your customer data is kept safe, secure, and accurate from beginning to end.

Other industries that utilize live identity verification within automated workflows and examples

While live identify verification is a vital investment for the banking industry, the solution is being rapidly adopted by other industries.

Automobile insurance

Automobile insurance is a $100B industry, but it can also benefit from live identity verification. Automobile insurance companies are looking for ways to reduce expenses and increase customer satisfaction, and live identity verification is a great way to accomplish both of those goals.

Examples of how automobile insurance companies can use live identity verification:

Customers who have purchased cars in the last few years will likely have access to the required documents online; this eliminates the need for agents to call in for additional information or proof. This reduces time wasted on calls and frees up your agents’ time so they can focus on more complex cases instead of simply collecting simple information from customers over the phone (in other words, you’re able to serve more clients).

Home and property insurance

The most common use case for live identity verification in home insurance would be when a customer signs up for new coverage or updates their existing policy details (like name changes). Customers need to prove who they are before any money changes hands—to ensure no fraud and protect against identity theft. By automating this process with live video chat and facial recognition technology, you can reduce the time required and ensure all parties involved are satisfied with the experience.

Non-agency mortgage

If you’ve ever taken out a mortgage, you know that banks have relationships. They share information about the loans they issue and buy and sell them to one another. This means that when you apply for a mortgage, your lender can check your credit history and verify who you are without doing any additional research. This is called an agency relationship because both parties share responsibility for ensuring the accuracy of the information being shared.

However, not all lenders need to have these relationships with other institutions or companies to make loans or receive funds from them (for example, non-banks). These lenders often face higher risks when deciding whether someone should get a loan because there is no way for them to verify their identity unless they go through extensive research online—which can take hours, if not days.

Health insurance

The healthcare industry is a prime example that would benefit from live identity verification within automated workflows. This is because health insurance fraud is a genuine problem. Identity verification helps prevent fraud by ensuring that only authorized people have access to sensitive information such as your Social Security number or credit card data. 

It also helps to prevent identity theft by providing you with more control over the personal information you share online and in-person: if someone claims to be an “authorized” representative from your health insurance company but isn’t recognized by their facial features or voice, then there’s no need for them to have access any sensitive data about your account—and if they do gain unauthorized access anyway through some unknown means (such as stealing passwords), then at least now you know something strange has happened.

Credit cards

Credit card companies are ideal candidates for live identity verification. Given the money at stake, credit card companies want to reduce fraud and ensure that their customers are who they say they are. In addition to reducing costs and increasing profits, live identity verification can help credit card companies improve their customer experience.

In summary

Having the right mix of verification methods can help you build trust with your users and encourage them to come back repeatedly. So if you think your current authentication process could use a boost, why not consider giving live identity verification a spin? With the right provider—and we may have an idea about that—you might be surprised by the difference it can make for your business.

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