Do you know that the digital identity verification market is beholding a notable consumer paradigm shift where people are getting shifted from manual identity verification systems to digital identity verification processes? As per the report by Mordor Intelligence, the identity verification market is anticipated to flourish at a CAGR of 13.1% over the projected period 2021 to 2026.
India counts as one of the Asian countries to ratify a unique central digital identity system called Aadhaar. This has led to India becoming the largest community ever in history to embrace digital identity so efficiently. Recently, there has been a surge in demand for KYC verification in India, particularly digital KYC, owing to the Digital India initiative by the Government of India to advance digitalisation.
The Different Use Cases of Identity Verification
There are different cases of identity verification that are as follows-
- Bank Account verification- It is the pivotal part of ACH transactions that ensures that funds are getting debited and credited to legitimate bank accounts. Bank account verification shows that the bank account is valid and authentic. It is sometimes known as funding source verification.
- GST Verification- It is a unique GSTIN 15-digit PAN-based number given to a person registered under GST. To file GST returns, GST verification is a must. With the help of technology, you can get your GST verification online.
- PAN card verification- Today, PAN card verification is an obligatory requirement to prove a PAN card’s authenticity. There are three ways of PAN verification- API based, file-based and screen-based.
- Driving License Verification- If you covet to have your own vehicle, you need to have a driving license. For getting a driving license, driving license verification becomes mandatory. It acts as a legal document under Motor Vehicles Act 1988 issued by the Regional Transport Office (RTO). Many businesses verify the DL of their customers before extending any service.
- Voter ID Verification- Voter cards are issued by the Election Commission of India that allows citizens to cast votes. It contains all the details of the individuals. Through Voter ID Verification, a business can get valid data, addresses, and other personal information.
- Offline Aadhar Verification- It refers to the paperless KYC arrangement that is an alternative to Aadhaar offline KYC. It is helpful for the individuals who are attempting to mechanize their client onboarding and verification process using the web.
- ID card OCR- With the help of OCR, all the data from the ID card like the PAN Card, Aadhaar Card, and Voter ID card can get extracted in no time. Such authentic data is helpful in speedy customer onboarding.
Top 5 Benefits of Investing in Identity Verification
Identity verification refers to testimony to exhibit that the identity of the individual is credible. It shows that the individual is credible and matches with the character he/she professes to be as a general rule. With the assistance of identity verification, it gets simpler to battle any extortion and obliging in observing client risk. Here is the rundown of the top 5 advantages of identity verification–
- Helps in credit risk profiling
Today KYC has become a core tool for credit risk profiling in the financial technology industry. Finance risk profiling holds a prominent place in reducing any future financial loss and credit failure. According to research, more than 80% of credit defaults arise from 10% to 20% of the lending segments. Hence, profiling these segments can help in credit risk management. Moreover, credit user’s information contains dozens of variables and complex data. With the help of credit risk profiling, one can swiftly identify these factors.
- Offer secured shared economy
Did you know the best examples of a shared economy business model? Airbnb and Uber are typical examples of this model. Their journey appears impressive and reliable but, there are some hardships as well. This model lacks trust and security in some cases. After the evolution of identity verification in India, it has become easy to establish a secured shared economy where through scanning ID documents, the authenticity of ID documents can get verified.
- Mitigate online fraud and attacks
As per the shocking revelation by data analytics company Experian, about 65% of business houses have reported online fraud in India. Moreover, 87% of businesses have expressed their concern over the sheer damage caused by such online scams and money squandering. Most of the fraudulent practices that target business houses rely on bogus identities and false personal details. Without identity verification, attackers cannot complete the ID verification process. As a result, it becomes an effective countermeasure to track these fraudsters and keep your business at bay. Therefore, KYC verification in India is the need of the hour.
- Provide a seamless customer experience
One of the well-known benefits of identity verification services can be derived from the fact that it offers the best user experience (UX). It ensures hassle-free services, and customers can verify themselves via KYC verification or facial recognition that saves time and effort. KYC service providers can endeavour the best seamless experience for businesses and their stakeholders and minimise purchase abandonment rates.
- Allow step-up verification risks
Today many organisations use a risk-based model which is not reliable and trustworthy, especially when dealing with high-risk users. In most cases, due to a lack of authentication check, there is a high risk of transaction failures and delay in payment. With identity verification, you can fabricate authentication levels based on the severity and risk involved in the transaction.
Today in this virtual world, anything and everything can be done using our fingertips. But with such widespread digitalisation, the cases of data breaches, privacy issues, account intrusions, and identity theft are becoming new normal for everyone. Here, the role of identity verification comes into the picture. It helps the business to identify any fraudulent activity and conduct its business smoothly. Even the need to create a drive for identity verification in India is a matter of great concern. Such security measures will help alleviate malicious activities.
Zoop, a unique platform, aims to transform the current KYC process by making it more reliable, secure, and robust for the users with the help of Universal Digital Identity. We offer other services like merchant verification, financial verification and digital contracting as well. Moreover, it serves to build a platform where people can share their identity with ease and amplify the need for building One Digital Identity for all.