Financial institutions face constant pressure to comply with regulatory mandates designed to stop identity fraud and money laundering while still delivering excellent customer support, watching bottom-line results, and meeting business objectives. In today’s complex business environment, this appears like an almost impossible task. However, those regulatory mandates also create many opportunities to improve efficiencies and save money. By integrating identity verification into the overall risk management strategy, financial institutions can expect to see substantial benefits with their bottom lines, customer support 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 find out whether a new relationship must be started. “Know your customer” has been promoted within institutions as an indication of personalized customer support; however, with the enactment of the USA PATRIOT Act regulations, identity verification has become the difference between success and failure in the ever-changing financial services market.

How come identity verification vital that you financial institutions?

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

Institutions need to stop identity fraud while balancing the necessity to protect customer information with a customer’s requirement for quick, efficient service. Identity verification is obviously 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 reduce a bank’s burden. That’s how “knowing your customer” can help–if identity verification becomes area of the defensive measures within the overall risk strategy, it could be a significant element 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 very quickly and efficiently rather than manually researching identity information by calling references and checking websites.

From airline happen to be school registration to doctor visits, society is accustomed to trading some privacy for the security of each individual and the country. However, customers do expect their financial institutions to safeguard 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 position to safeguard its customers.

Determine perhaps the customers appear on any list of suspected terrorists or terrorist organizations(2)
There are many options available to help banks implement identity verification programs to comply with the regulations, always aiming to make educated and proactive decisions about customers. The USA PATRIOT Act regulations allow a documentary or nondocumentary approach.
Documentary Solution

Traditionally, the usage of manual or documentary solutions for identity verification has been prevalent in the financial services community. At many institutions, a worker will look at a driver’s license or passport to begin account-opening procedures. Institutions are counting 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 ensure consistency. Checking one source won’t provide enough information, and there is no database that features everyone residing in the United States. What this means is an organization must make sure the name, Social Security number, address, and date of birth are valid and associated together using various data sources. If the data is unvarying throughout multiple sources, the institution can make an educated decision that it’s truthful. By utilizing identity verification technology, organizations may have the equipment, not only to verify identity, but also 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 support levels.

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