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Innovative technologies have recently emerged to help legal, real estate, accounting, and similar industries streamline their online identity verification processes.
However, many industries are still skeptical about the significant, positive impact online identity verification brings, especially since the conventional face-to-face methods have served them well for several years.
If you want to understand better whether these new technologies are worth your investment, check out the benefits of online identity verification I outline below.
1. Increased workflow efficiency and lower overhead costs
Digitising your identity verification processes saves you time, effort, and resources because you accomplish the verification steps more quickly and efficiently.
Manually requesting, photocopying, uploading, and processing identity documents entails more paper-based materials, filing cabinets and other related items, administrative personnel, etc. -- all adding to your office management costs.
Manual workflows also eat up more minutes and create increased idle time. This means you’ll have fewer productive transactions throughout the day, week, month, and year.
Switching to online ID proofing also lets you spend less on training sessions and materials, shorten your KYC work and communication flows, and assign more business-critical tasks to your staff.
Our solution, Raytio, automatically updates individual and family profiles, notifies you of any information updates, and reminds you of upcoming document expiry and replacement dues, etc.
This simplifies your compliance audits and reporting, client onboarding, and other ID proofing activities.
2. Compliance with AML/KYC regulations
Properly validating a person’s digital identity through digitised systems lets you adhere to New Zealand’s Anti-Money Laundering (AML) and Know-Your-Customer (KYC) requirements.
These two regulations establish and guide you on the quality and kinds of controls you should set for identity fraud prevention.
For instance, it mandates your business to appoint inquisitive compliance officers to ask hard questions, complete online annual reports, maintain organised documentation, etc.
If you fail to meet, neglect and violate these rules, the NZ government can issue public warnings and fine you $2 million to $5 million (depending on the frequency of offense).
Digitised systems, including Raytio, have cutting-edge functionalities to automate your AML/KYC compliance in the various steps and reports mandated by the regulations.
This eases and improves the quality of your adherence far better than conventional systems and gives you excellent company performance ratings and reputation with NZ’s authorised AML/CFT compliance auditing entities.
3. Eliminate human error
Another benefit of online identity verification is the increased chances of eliminating human-committed mistakes.
Traditional client verification procedures depend largely on human-performed measures, which can be susceptible to bias and inaccurate judgments on the genuineness of the person’s credentials.
For instance, front-line transacting personnel can lack the training, skill suite, tools, and experience needed to verify identities from highly falsified documents with heavy yet subtle cover-ups.
Using robust digital authentication systems can lower the risk of human error and its serious repercussions.
They have computerised algorithms that can detect changes in a person's face, avoid fatigue and other factors influencing verification, etc.
For one, Raytio helps reduce human error by automatically checking identities against sanctions, PEP, fraudster, and blacklists.
4. Security from criminal operations
The New Zealand government established the AML/Countering Financing of Terrorism (CFT) regulations to protect the country, your business, and its people from illegal operations.
That’s why well-oiled online identity verification processes (leading to AML compliance) can help secure you, your clients, and your data assets.
Online identity authentication technologies have robust capabilities, such as scans and analyses powered by artificial intelligence, facial points recognition, advanced photodetection, and other enhanced security features.
Raytio also provides a comprehensive list of valid identity sources, including international watchlists. With our solution, you can rapidly and instantly cross-check legitimate and nefarious profiles.
More extensive than manual examination methods, these digitised systems, such as Raytio, heighten your verification accuracy and business and client safety from illicit undertakings.
5. Better client experience
Digitising that process makes your operations efficient and satisfies your clients with a seamless user experience -- another advantage of online identity verification.
An example is when your platform (app or website) asks your clients to present their identity documents and information online.
From devices with cameras and an internet connection, users can just drag and drop or upload the needed files and get instant confirmation (or rejection) results in seconds.
They can do all that without needing to show up physically, wait in line, and submit the requirements at your office (particularly for initial and simple process phases).
As a result, your clients experience zero to minimal hassle and disruptions, and faster turnarounds. You also get better conversion rates, client patronage, and returning customers.
6. Transferred security responsibilities
When you keep physical (or even email) copies of your clients’ identity files -- which are unencrypted -- you bear critical amounts of responsibility and can risk exposing them to unwanted users.
This makes online identity verification systems beneficial to your company. These technologies have instant, secure storage, compliance, and analysis features for sensitive information and documents.
It also lets you transfer the burden of maintaining rigorous security standards -- including Customer Due Diligence (CDD) tasks -- to reliable identity verification infrastructure and service providers.
That way, you can worry less about your business safety and focus more on your other core, profitable operations.
7. Trustworthy brand image
Maintaining a dependable reputation is crucial to legal, real estate, accounting, and other industries with high-performance standards and client trust requirements.
This is why getting an online identity verification is advantageous -- especially as transactions evolve and connect through the Internet.
These systems’ stable security, automation, and compliance maintenance feature, altogether, help you provide outstanding and trustworthy services your clients deserve from your company.
In turn, your clients can better connect with you emotionally, be driven to advocate for your company, and support your success.
8. Contribution to protecting New Zealand
The ultimate benefit online identity verification gives your business is your opportunity to help safeguard New Zealand from illegal undertakings.
Reports reveal that $1.35 billion from spurious, unlawful activities is laundered through legitimate businesses in the country.
This transferred money then funds terrorist acts, child trafficking, illegal drug production, and other illicit activities harming New Zealanders and even your business.
Instating well-built identity validation controls helps you guarantee that the money sources you’re facilitating are legitimate and not used to finance felonious operations.
By doing so, you then contribute to a safer business environment, a more flourishing economy, and greater protection for New Zealand communities -- locally, nationally, and even globally.
Adopt online identity verification now for your company.
Verifying identities online poses several (and more) benefits for your business, including competitive advantage, greater visibility into your transactions, financial inclusion, etc.
Its safer and more novel technologies will also empower you to stop and capture fraudulent attempts more quickly and secure your company.
This makes investing in online identity verification systems a sound decision -- profiting you in the long run through bolstered client trust and relationships and trust ratings in your industry.
This is our second post in our Online Identity Verification series. You can find the others listed below:
Part 1. Your Ultimate Guide to Online Identity Verification
Part 3: How the Identity Verification Process Works Online
Part 4: How Digital Identity Verification Services Make Regulatory Compliance Easier