5 Advantages Of Identity Verification
The online world is highly competitive so it’s not surprising that identity verification is becoming widely popular. If you’re considering using identity verification for your business, you should have a read of our five advantages to find out if you would benefit from it.
Protects Your Business Against Criminal Activity
Website hacks and identity fraud are common issues affecting the online world so it’s crucial that businesses have measures in place to protect their customers and themselves. One of the major advantages of identity verification is that it can help protect your business against such crimes by ensuring that transactions are legit. This is particularly important for ecommerce businesses and any other type of company that deals with online transactions. Identity verification creates a better user experience as your customer’s will feel safe to use your website which will lead to better customer loyalty.
Helps Businesses Comply With Anti-Money Laundering (AML) And Know Your Customer (KYC) Rules.
Dirty money is a recipe for trouble so it’s crucial that businesses are compliant with AML and KYC requirements or they risk heavy fines and damaging their reputation. One of the simplest ways that they can prevent this from happening is to have an effective system in place to verify the identity of their customers.
Can Be Used For Age Verification Purposes
An Identity verification API like Cognito HQ can also be used to verify a customer’s age which is particularly important to the online gambling industry and other industries where age restrictions apply. Some websites still ask for date of birth to verify a user’s age which isn’t effective at all. It’s easy for someone to input any date of birth they wish. Identify verification is a much more effective way to verify a person’s age which will help protect your business by ensuring that you comply with the law and regulations that apply to businesses who offer age-restricted products and services.
Improves Customer Experience And Sign Up Rates
Another major advantage of identity verification is that it improves the overall customer experience which results in higher sign up rates. Identify verification takes place in real-time which makes the sign up process quicker and simpler for the customer. A good identity verification API will verify a customer’s identity within seconds. Customers no longer need to send in photocopies of their passport or drivers’ licence which could take days or even weeks to process. They can verify their identity right there right now.
Reduces Business Operational Costs
The great thing about identity verification is that the process can be automated which saves time and money. Identity verification no longer needs to be manually processed. This also reduces the chances of human error which helps protect the customer and business.
As you can see identity verification is an essential component for many online businesses helping them deliver a seamless user experience while reducing the risk of fraud and maintaining compliance.