Consumers are used to the quick and efficient interaction with suppliers that mobile apps give us. We’ve come to expect nothing less. That’s why banks and lending institutions need to be thinking “customer first” or risk being left behind. The challenge lies in delivering an excellent customer experience without bypassing compliance obligations. The threat of fraud, cybercrime and terrorism makes the need to Know Your Customer (KYC) an absolute requirement for financial services institutions.
It’s the same for everyone. Challenger banks, innovative payment platforms and peer-to-peer lending may offer great financial innovations, but they still need to verify customer identity. This process typically relies on traditional paper proofs of ID. In China, online expansion has seen the volume of peer-to-peer lending triple in the last five years. Yet, verifying the identity of lenders and borrowers still relies on local police agencies carrying out manual checks.
Bringing ID checks into the digital age
Aside from bottlenecks at the police station and fears over fraud and corruption, manual document-checking cannot support a global business model. For maximum assurance, documents need to be verified automatically and combined with other forms of ID check, including facial or voice recognition.
Now, imagine a world where, to get a home-improvement loan, you simply use your mobile phone to pinpoint your home location, scan in your driver’s licence and take a selfie.
This provides enough data to satisfy most financial regulatory requirements, without a single piece of data having to be keyed in. The lender still cross-references the data and verifies that what they have been given is authentic: are the name, address and date of birth on the licence correct? Does the licence photo match the selfie photo? Does the GPS location match the address on the licence?
All the data you need for a KYC check, just collected in a different way.
IDscan Biometrics, acquired by GBG in June 2016, supports a fully compliant customer experience in financial services.
- Validates thousands of different forms of international ID documents in less than a second.
- Scans over three million documents each month, enhancing the knowledge base that underpins the technology.
- Combines with GBG’s wider ID verification solutions to take your customer through full ID and AML screening in under five seconds.
- Integrates traditional document scanning with facial recognition to continuously refine your customer’s online experience.
 ACCA Report. Dec 2015. The Rise Of Peer-To-Peer Lending In China: An Overview And Survey Case Study.