Digital Identity Verification Cuts Down On Fraud And Makes Banking Safer For Consumers

Digital security is paramount for most industries, but none more so than finance and banking. Consumers want to ensure their financial data is secure, and banks want to offer the most robust identity validation software to comply with new regulations and customer demands.

Thanks to new technology and artificial intelligence, many banks are able to help their customers open accounts, meet anti-money laundering requirements, and implement digital know your customers’ strategies to future proof their operations.

Financial Technology Is Expanding 

Artificial intelligence and smart banking have seen exponential growth over the last decade, especially as digital assets like cryptocurrencies take a larger role in everyday finance. Tools like Identity Verification for Banks are making the banking experience easier for all parties since they can open accounts and utilize modern technology to enhance the banking experience while protecting user data.

Banking Is Safer And More Personable Than Ever

Consumers want to know that their data and finances are secure, and they expect seamless integration between the digital and in-person banking experiences. Many developers need to ensure there are enough features in place that deliver a positive user experience while adhering to AML regulations and regions’ banking laws. Thankfully, consumer responses have been positive. People can open new accounts through digital channels, confirm their identity through AI, and complete transactions such as money transfers, peer-to-peer payments, and mobile check deposits. 

KYC Features Create A Truly Human Experience

Digital transformation has irreversibly changed how banks and customers work together, and the pandemic accelerated the adoption of modern know your customer (KYC) practices to make banking safe and accessible. Digital KYC solutions, also referred to as eKYC, can help banks identify their customers through mobile apps, bank identity, and even AI-based identity verification enables consumers to connect with their bank and bankers to ensure their clients’ safety.

AI Bring Harmony To Owners And Regulators

Regulators have been cracking down on fraudulent activity and incentivizing banks to update their security and deter money launderers. Recent legislation in the EU, such as AMLD 5 and ALMD6, require financial institutions of member countries to implement their own changes to meet the regulatory standards. Since each country writes different requirements, there are many digital solutions that help them achieve their goals

For example, the UK enables financial companies to use automated resources to comply with AML directives, whereas German regulators require video-based solutions. Many non-regulated consumer companies do not have the same standards that banks and financial institutions must adhere to, which adds additional challenges for developers and managers. 

Thankfully artificial intelligence and digital identity verification software can help all interested parties achieve their goals and meet their customer in the middle.  

Final Thoughts

Modern banking tools like digital identity verification aided by artificial intelligence are future-proofing the financial industry while optimizing the customer experience. Since new anti-money laundering regulations like AMLD 5 and ALMD6 are driving changes across the EU, these new processes.