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

For today’s financial institution, identity verification is really a critical part of establishing a new relationship. True identity verification means reviewing the truthfulness of what a prospective customer discloses by screening the data against multiple sources, then analyzing the facts to determine whether a new relationship must be started. “Know your customer” has been promoted within institutions as an indication of personalized customer service; 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.

Exactly why is identity verification very important to financial institutions?

The increased role of the country’s financial institutions in securing the home front mustn’t be undervalued. The reason behind the USA PATRIOT Act is national security. No-one will disagree that having a much better comprehension of the customer doing business at an organization provides increased security for the institution, its customers and people in general.
The danger for banks is more than just monetary loss. 먹튀  Injury to a financial institution’s reputation created by noncompliance and the publicity surrounding terrorists opening accounts can cause lost confidence in the institution and significant loss in customers, sales, and revenue. Coping with negative publicity is really a long, difficult, costly process.

Institutions need to avoid identity fraud while balancing the necessity 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. Stopping the “bad guys” from opening a new account at an organization is the easiest 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 entire risk strategy, it can be 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 as opposed to manually researching identity information by calling references and checking websites.

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

Determine perhaps the customers appear on any set of suspected terrorists or terrorist organizations(2)
You’ll find so many solutions to greatly help banks implement identity verification programs to comply with the regulations, always aiming to produce educated and proactive decisions about customers. The USA PATRIOT Act regulations allow a documentary or nondocumentary approach.
Documentary Solution

Traditionally, the use of manual or documentary solutions for identity verification has been prevalent in the financial services community. At many institutions, an employee will look at a driver’s license or passport to start account-opening procedures. Institutions are depending on driver’s licenses and passports to be valid, but with the recent upsurge in forgery, it’s difficult to own confidence that the documentation is legitimate.

Nondocumentary Solution

Considering that the enactment of the USA PATRIOT Act, technology has improved within the location of identity verification. Identity verification technology provides a simple approach to integrating a CIP into an institution’s risk management strategy. In addition, identity verification technology gives an organization a cost-effective tactic for keeping up-to-date with ever-changing regulations.

For true identity verification, it is critical to screen presented data against multiple independent sources to make sure consistency. Checking one source won’t provide enough information, and there’s no single database that includes everyone surviving in the United States. This means an organization must make sure the name, Social Security number, address, and date of birth are valid and associated with one another using various data sources. If the information is unvarying throughout multiple sources, the institution could make an educated decision that it’s truthful. By using identity verification technology, organizations might have the various tools, not merely to verify identity, but and to screen against government lists and document transactions. Institutions can completely comply with the regulations, while also realizing the advantages of protecting against fraud, increasing operational efficiency, and improving customer service levels.

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