Businesses serve the individual needs of clients and customers, regardless of what they sell, which field they operate in, and where they operate. Just like an electrical appliance’s plug fits electrical wall outlets, businesses link their offerings with patrons in need. Organizations in certain trades need to know their customers’ identities prior to initializing services.
Banks and other financial institutions must know the legitimate identities of their customers. Without providing legitimate identification issued by government agencies, banks can’t open accounts, cash checks, or provide loans to interested customers. Financial institutions must know identities of customers because they could be wanted criminals, have past histories of fraud or financial crime, known to engage in identity fraud, or launder money illegally.
Identifying customers’ identities using digital verification is beneficial for financial institutions because it effectively proves if customers are who they say they are. They need proof of identity, where customers currently live, and where and when they were born. Without these three vital pieces of information, banks are forced to turn down customers. If they bend the rules and accept customers anyways, they are slated to faced regulatory action from appropriate agencies.
As the world’s population grows and businesses become more popular, number of transactions continue to increase. Manually verifying customers’ identities is costly and takes up hefty blocks of time. Using digital identity verification services is important to reducing costs of vetting customers’ assertions and claims about who they are.
Transactions are becoming increasingly complex. As years go by, globalization continues to become more prevalent in nearly every aspect of businesses. Consumers’ collective goal is to find product and service providers that list their offerings at prices lower than those all around the world. Cross-border transactions are complex and absolutely require financial institutions to be certain of the identities of all parties involved. Digital identity verification makes it easier to vet identities in complex multi-continental transactions.
Regulations in many countries become more complex in dealing with others around the world and even in their own countries. Dealing with regulations is difficult, especially when financial institutions break their codes and are forced to pay unhealthy sums of money or meet other statutory requirements. Verifying identities using digital means helps reduce the frequency of fines and fees wrought down by regulations.
Technology increases at a faster rate than ever before as years go by. As such, customers of financial services expect bank processes to be completed quickly, something that can be made certain by verifying identities using computers and other Internet-based procedures.
Knowing one’s customers is so important for financial institutions because they can face significant fines, fees, and damning regulatory action. As such, software providers offer digital identity verification services entirely online, using a computer or mobile applications. Many businesses profit from these services, as every financial institution is required to utilize them without discrimination, applying identification to every customer they have.
Fortunately, there are some businesses that care about providing quality services to financial institutions before being concerned about earning profits from them. One such company is Jumio, featuring a wide variety of methods to verifying identities. Jumio’s suite of identity verification services is affordable, easy to use, and quick to download. Financial institutions across the country trust Jumio in helping them verify customers’ identities using digital means.
No matter what size a financial institution is, they must be certain of every customers’ identify, individuals, families, and businesses alike. The Federal Deposit Insurance Corporation, the United States of America’s premier government agency in dealing with banks, leverages hefty fees and fines against financial institutions that fail to verify the identity of their customers, charging on a per-customer basis.