Make Banking More Accessible By Using Digital Identity Verification

The demand for identity management technologies and services is high. Banks increasingly rely on identity authentication technologies to protect employee, customer, and partner privacy and security. The role of identity management technologies in financial services is to provide secure and streamlined digital identity banking.

Discover how identity verification works and how banks can benefit from doing it correctly if they know how to recognize, identify, and verify a person accurately.

Digital identity banking

Online information about an individual, organization, or electronic device constitutes a digital identity. Individuals and devices can identify themselves through unique identifiers and usage patterns. Advertisers and website owners often use this information to target and identify users.

Online shadow data and personal information contribute to creating a digital identity. For example, a pseudonymous profile tied to the user's IP address or a randomly generated unique ID can serve as a digital identity. However, authenticating digital identities requires users to provide selective information.

How to Implement Digital Identity

Individuals' digital identities can be verified using verified criteria, such as identity documents and biometrics, creating a trusted link between them and their digital identity. Trusted digital IDs generally involve three steps:

  • Data collection as ID documents or biometrics
  • Verify the authenticity of documents and the identity of the person presenting them with biometrics or third-party verification
  • Transform these IDs into digital ones

What's the process?

Capture ensures the digitization of identities; you need to enable different solutions based on the channel the consumer uses. Hardware selection determines quality, verification types, and accuracy.

Information about the subscriber is collected, including a passport, driver's license, national identification card, and resident permit. The technology makes it easy to enter accurate customer information into customer databases. Utility bill addresses may be required to complete the customer profile or to allow further verification.

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Devices like smartphones, webcams, iPads, and specialized fingerprint scanners collect biometric information.

  1. Confirm

The purpose of identity verification is to ensure that a person's identity is authentic and that they are the person they claim to be. Several solutions are available depending on the degree of assurance required.

  • Invalidation of Documents: Checks the authenticity of an ID document against a document template database. Developing a document verification solution can be complex and may require adaptation to channel constraints, regulations, and document types. You verify embedded security features in visible, infrared, and ultraviolet light with online verification based on picture identification, advanced verification using full-page scanners, and electronic document verification for contact or contactless documents.
  • Verify biometrics: Operators aim to improve user experience and strengthen security with biometric technologies. Using biometrics for remote Identity Verification, friction reduces, fraud decreases, and end users experience a greater degree of personalization. In addition to verifying the identity of the individual presenting a document, biometric technology also serves to identify different services later in a simple and modern manner. Operators are using biometric technologies to strengthen security and improve user experience. For end users, biometrics reduce friction, reduce fraud, and enhance personalization. The most common biometric technologies are facial recognition and fingerprint scanning.
  • Face recognition: Algorithms identify facial features by analyzing good-quality images of faces. For example, a selfie can help identify the eyes, nose, and jaw. After these features are collected, an original ID photo may be matched or contrasted to determine if any similarities exist.
  • Fingerprint verification: Two fingerprints compare automatically using this method. For matching purposes, fingerprint patterns get compared on several features. Patterns, commonly ridge aggregates and minutia points, or unique features within patterns, are examples of patterns. A fingerprint can be matched to the data on the chip or compared to a third-party database remotely.
  • Verification by third parties: Independent third-party data sources can help customers validate and verify their identity information when registering or onboarding. Numerous authoritative sources can be relied upon to verify identity information, including credit bureaus, government data, live data from Mobile Network Operators, watch lists, and sanctions lists.
  • Make IDs Digital

Digitally digitized IDs connect to personal information through biometrics and other attributes. Following privacy regulations, these data clusters may be stored on the premises of the MNO or in a secure cloud or on-premises database.

Digital Identity Examples

A digital identity can consist of numerous data points, such as:

  • Login name and password
  • Birthdate
  • SSN
  • Consumer behavior or purchasing history
  • Social Media Activity
  • Transactions and search activities online
  • Health history

Trusted Digital Identity

The Trusted Digital Identity Framework (TDIF) is an accreditation framework for Digital Identity services. It sets out the requirements that applicants need to meet to achieve accreditation. The TDIF also includes guidance material and templates to support providers with TDIF requirements.

How to Verify Digital Identity

Digital identity verification uses a matched data set to compare what they have with a verified dataset. Comparing the presented data with the verified data set verifies the person's identity.

Each method of digital identity verification works differently. Here are some examples:

  • Validation of ID Documents: Verifies the legitimacy of the ID.
  • Using biometrics: Establishes the identity of the presenter of the ID based on selfies.
  • Real-time liveness detection: Detects spoofing attacks like photo-duplications or masking attacks when selecting selfies for recognition.
  • Knowledge-based Authentication: Generates questions based on credit file information.
  • Verification using one-time passcodes (OTP): Sends a one-time passcode to the applicant via SMS or email.
  • TIPN: Enables the applicant to verify their identity using credentials already in use with another provider.
  • Methods using databases: Databases allow the applicant's information to be verified using data from social media, offline databases, and other sources.

How do Banks Verify Identity for Online Accounts

Document image upload

With the banks' app, customers can take a picture of their IDs, upload them, and OCR can read their information, which gets verified against central databases.

Entry of Manual Documents

The customer enters the data along with the document number, uploads a photo ID, and the bank verifies the authenticity of the ID, validates the name, and address on the application form, and matches the face of the photo with the selfie.

How can BlueCheck Help?

BlueCheck's industry-leading identity verification infrastructure enables merchants to grow their business faster. Serving a wide variety of industries, our solutions are custom-tailored to the unique needs of our customers.

Schedule a call today with a BlueCheck specialist to learn more about our Age & ID Verification solutions

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Reference:

https://www.fortunebusinessinsights.com/industry-reports/identity-and-access-management-market-100373

https://www.hyland.com/en-ZA/resources/terminology/data-capture/what-is-optical-character-recognition-ocr

https://www.investopedia.com/terms/e/eidv-electronic-identity-verification.asp 

https://www.techtarget.com/searchsecurity/tip/Using-digital-identity-management-to-gain-and-retain-trust 

https://www.freecodecamp.org/news/what-you-should-know-about-web-tracking-and-how-it-affects-your-online-privacy-42935355525/