How Digital Identity Services Companies help Digital Verification

The digital transformation has come with its challenges. With most services being provided online and people sharing their data via smartphones, there are many challenges like authenticating personal information and protecting the same data. The problem of online verification has given rise to Digital Verification Services, which enable verifying somebody’s identity within seconds. It includes authenticating information through facial recognition, fingerprint, and an iris scan.    

The digital transformation has taken the world of products and services by storm on the back of advanced technologies like AI, ML, GPS and social media platforms. It has redefined tasks that required standing in long queues and tons of paperwork to a matter of seconds and minutes. For instance, opening a bank account is now possible while sitting in the comfort of your home with digital verification, while using a smartphone. Similarly, many such services are now available at the touch of a button.

But what is Digital Identity or Digital ID? Digital ID is the personal information about an individual or organization that can be traced back to the real you.

How do digital verification services help?

Digital identification services help prevent fraud and authenticate the identity of an individual/business entity. The companies provide Aadhaar-based identification services, e-KYC, etc. to authenticate if the biometric information provided is genuine or not.

The digital identity uniquely identifies a person online/offline through preserved online records. The government, public and private entities can access this information for the verification process of individuals/organizations. These pieces of information are mostly used when an individual opens a bank account, pays taxes, applies for work, or wants to enrol in a school. Like a paper-based ID such as a license and passport, a digital ID can be authenticated using biometric data, PINs, passwords, social security numbers, driving license numbers, passport numbers, login credentials, date of birth and bank account number, etc.

The digital verification companies are helping in making the process easier by overcoming the following challenges:

Error-free authentication

The digital identification service helps with immediate error-free identification of the individual/organisation or a business entity. The error-free authentication helps in a hassle-free and quick customer-onboarding process which usually takes two to three days to complete if it requires physical presence, documentation, and signatures. But digital identification services make the process simple and convenient for the consumers and the companies. It ensures a person’s identity that matches the one they claim to have, which is a set of distinct features and traits of an individual that are unique and irreplaceable.

Better privacy

The digital identification service companies digitise the whole process which further prevents fraud and ensures better data privacy. These companies provide better security when managing ID verification solutions for a secure onboarding process of the clients through facial recognition, and live recognition features process. It makes the identity and access management (IAM) process more credible and trustworthy.

With the help of Artificial Intelligence, the accuracy of the best facial recognition increases. For the year 2020, the best facial algorithm recorded an error rate of 0.08% compared to 4.1% recorded in 2014. Though the dependency on Machine Learning algorithms is increasing, solutions such as NIST-approved digital signatures and iBeta Quality Assurance provide third-party biometric lab testing to ensure data verification while maintaining high standards.

Quick identification

A perfect example of quick digital identification is e-COS (electronic Customer Onboarding System) which consists of Aadhaar based e-KYC and e-Sign. With this e-COS, the customer onboarding process takes a maximum of 15 minutes which also cuts down the cost by 90 per cent compared to physical identification. The schemes Instant Housing Loan, and Instant Bank Accounts are a major attraction of this process helping customers in the private sector.

Seamless customer experience

A quick, hassle-free, instant identification delivers a seamless CX experience. A better customer experience translates into a loyal and growing user base. The digital verification companies offer a bouquet of services that help manage fraud monitoring to the subsidy management system. These services are helping the private and public sectors earn the customers' trust.

Compliance concerns

Identity masking is an issue that is gaining considerable traction in the digital identification market. The businesses easily comply with UIDAI to cloak Aadhaar Numbers to integrate the customer onboarding solutions. The entire process's goal is to mask Aadhaar numbers in real-time during the customer acquisition process. The digital verification companies help with the data verification as per the instructions of regulatory bodies like RBI, IRDA, SEBI, and UIDAI. These bodies are responsible for Aadhar KYC, enrollment, and identification and help manage all stages of the Aadhar lifecycle by developing policies and procedures to ensure the security of identity information, thus preserving its integrity.

Summing up

The world is experiencing a boom in digital verification services, but ensuring a well-established system may help achieve the goals. Technology is a key player here that can help manage the digital identity verification process efficiently while eliminating the risk of fraud and identity theft.

--By Siddharth Kukatlapali, Co-Founder & CBO, Syntizen Technologies

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