Financial institutions and organizations around the world can gain significantly by adopting electronic ID verification. User identity in the digital format, also known as e-ID, offers many benefits.
In the traditional user identification system, the lack of a legal form of identity affects many individuals around the world. The lack of an optimized ID verification system prevents them from receiving government assistance, health care services, banking services, and many other government aids.
Here, we have curated a list of the options where you can implement the electronic ID system and reap all the benefits such a modern system offers.
Provide System Entry to Only Authenticated Individuals
Individuals with electronic ID can gain entry to a safe and secure digital environment in different industry verticals by submitting their user credentials. In addition to providing high levels of data privacy, the adoption of electronic identification also offers control over personal data.
Improve Productivity and Customer Experience
E-ID systems have been deployed with some success in a few countries, spearheaded by government agencies. Electronic identification can improve the client experience and increase productivity for banks while also boosting risk assessment and mitigating frauds. In addition, they can streamline the KYC (Know Your Customer) process and offer enhanced data protection against cyber threats.
Automate Customer Onboarding Process
Many individuals abandon financial applications due to a poor registration process. If the organization adopts an electronic ID system, it can improve customer experience by offering them a smoother and quicker onboarding process. Using e-ID can improve the quality of customer support while also lowering the cost of providing it.
Enhance Banking Experience
Furthermore, the banking sector may utilize electronic ID to quicken the employee onboarding process by automating the employee verification process. Implementing a robust e-ID system will allow them to fill open positions more quickly and with better-qualified individuals than they could otherwise.
At the same time, an electronic ID can assist banks in improving risk management by streamlining the know your customer (KYC) operations. They can establish an improved fraud management system and enhanced consumer data protection against the looming cyber threats.
Banks are required to stay compliant with Know Your Customer (KYC) regulations to verify the identity of persons who open new accounts. Employing e-ID to comply with these standards, can increase their customer base in a timely and cost-effective manner while generating higher revenue. As a result, the necessity for in-person verification and manual processing of paper evidence of the account holder’s identification can be eliminated in the future.