Combining Identity Verification right into Chances Software.


Financial institutions face constant pressure to conform to regulatory mandates designed to stop identity fraud and money laundering while still delivering excellent customer care, watching bottom-line results, and meeting business objectives. In today’s complex business environment, this seems like an almost impossible task. However, those regulatory mandates also create many opportunities to improve efficiencies and save money. By integrating identity verification into the overall risk management strategy, financial institutions can expect to see substantial benefits to their bottom lines, customer care levels, and employee productivity.

What’s identity verification?

Identity verification is defined as “the method of using claimed or observed attributes of a person to infer who the individual is.”(1)

For today’s financial institution, identity verification is really a critical part of establishing a fresh relationship. True identity verification means reviewing the truthfulness of just what a prospective customer discloses by screening the data against multiple sources, then analyzing the facts to ascertain whether a fresh relationship should really be started. “Know your customer” has always been promoted within institutions as an indicator of personalized customer care; however, with the enactment of the USA PATRIOT Act regulations, identity verification is currently the difference between success and failure in the ever-changing financial services market.

How come identity verification very important to financial institutions?

The increased role of the country’s financial institutions in securing your home front mustn’t be undervalued. The point behind the USA PATRIOT Act is national security. No-one will disagree that having a much better understanding of the consumer conducting business at a company provides increased security for the institution, its customers and people in general.
The danger for banks is more than monetary loss. Damage to a financial institution’s reputation created by noncompliance and the publicity surrounding terrorists opening accounts can result in lost confidence in the institution and significant loss in customers, sales, and revenue. Dealing with negative publicity is really a long, difficult, costly process.

Compliance can not be ignored because penalties for noncompliance are severe. Regulatory penalties for the USA PATRIOT Act and OFAC regulations can vary from $10,000 to $1 million per infraction.

Just how can a financial institution benefit from the USA PATRIOT Act?

Protecting Against Identity Fraud

Institutions need to stop identity fraud while balancing the need to protect customer information with a customer’s requirement for quick, efficient service. Identity verification is clearly a first faltering step in reducing the opportunities for fraud and taking action 안전놀이터. Stopping the “bad guys” from opening a fresh account at a company is the simplest and most cost-effective way to cut back a bank’s burden. That’s how “knowing your customer” can help–if identity verification becomes part of the defensive measures within the overall risk strategy, it can be quite a significant factor in preventing fraud.

Increasing Operational Efficiencies

The USA PATRIOT Act has driven financial institutions to examine corporate policies and perform lengthy risk analyses. Identity verification technology helps integrate policies into normal routines by allowing frontline workers to gather needed information quickly and efficiently in place of manually researching identity information by calling references and checking websites.

Improving Customer Service

The consummate benefit from integrating identity verification into an institution’s risk management strategy is really a higher level of customer service.

From airline travel to school registration to doctor visits, society is accustomed to trading some privacy for the security of every person and the country. However, customers do expect their financial institutions to protect their identity information and their fiscal assets. Identity verification programs allow new accounts to be opened quickly, making a positive experience for the customer while showcasing the methodology the institution has set up to protect its customers.

Identity Verification Options

Section 326 of the USA PATRIOT Act requires that financial institutions develop Customer Identification Programs (CIPs) that implement reasonable procedures to

Collect identifying information regarding customers opening accounts
Verify that the clients are who they say they’re
Maintain records of the information used to verify their identities
Determine whether the customers appear on any list of suspected terrorists or terrorist organizations(2)
You’ll find so many options available to greatly help banks implement identity verification programs to conform to the regulations, always aiming to make educated and proactive decisions about customers. The USA PATRIOT Act regulations allow a documentary or nondocumentary approach.
Documentary Solution

Traditionally, the utilization of manual or documentary solutions for identity verification has been prevalent in the financial services community. At many institutions, a worker will appear at a driver’s license or passport to begin account-opening procedures. Institutions are counting on driver’s licenses and passports to be valid, but with the recent increase in forgery, it’s difficult to possess confidence that the documentation is legitimate.

Nondocumentary Solution

Considering that the enactment of the USA PATRIOT Act, technology has improved within the area of identity verification. Identity verification technology offers a simple way of integrating a CIP into an institution’s risk management strategy. Additionally, identity verification technology gives a company a cost-effective tactic for keeping up-to-date with ever-changing regulations.

For true identity verification, it is important to screen presented data against multiple independent sources to ensure consistency. Checking one source will not provide enough information, and there is no database that features everyone living in the United States. This implies a company must make sure the name, Social Security number, address, and date of birth are valid and associated with each other using various data sources. If the information is unvarying throughout multiple sources, the institution can make an educated decision that it’s truthful. By utilizing identity verification technology, organizations may have the tools, not only to verify identity, but also to screen against government lists and document transactions. Institutions can completely conform to the regulations, while also realizing the benefits of protecting against fraud, increasing operational efficiency, and improving customer care levels.

For financial institutions, the USA PATRIOT Act has established many burdens and opportunities. By embracing change and integrating identity verification to their corporate risk policies, institutions can drive back fraud, increase efficiencies, and keep service levels high while remaining profitable.

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