Get started with Digital Identity Verification

Umang Tandon
Solution Evangelist
Umang Tandon
Solution Evangelist

In a growing interconnected digital economy, identity verification of an individual’s real-world identity against their digital one has become ever critical in fraud detection. The ability to do this quickly and to comply with the regulations and ever-stricter AML policies has become crucial for business success.

What is Digital Identity Verification?

The heart of the digital identity scheme is essentially a secure method of being able to authenticate and verify the identity of the person. Today our physical and digital identities are more and more intertwined. Every person is unique with their specific fingerprints, facial traits, and other biometrics. Typically, identity verification takes place when a person produces his ID or KYC document during an onboarding or re-verification process.

There are various ways by which an individual’s identity can be verified digitally.

  • Liveness check
  • Facial Recognition
  • Face-to-face video verification

Why is Digital Identity Verification important?

Identity verification has always been the focus for Financial Institutes and other businesses that need to comply with the KYC norms of Regulatory authorities. In the past decade we have seen an increase in the fraud and identity impersonation cases which has made FinTech and RegTech companies to innovate and deploy a robust and a spoof proof identity proofing solutions using the state-of-the-art Artificial Intelligence (AI) and Machine Learning (ML) algorithms.

During these times when physical interactions between the customers and the Financial Institutes are limited, digital channels are the only options for businesses to continue their operations especially for banks.

According to a Survey conducted in the US in 2019-2020 with more than 100 responses from Financial Institutes.

Not only do 68% of the respondents say that Digitization of their account opening process is an active initiative at their institutions, 35% say it is their top priority.

There are broadly 3 categories of Financial Institutions in Customer Digital Account Opening Transformation.

The Early Adopters are the financial institutions who have embraced Digital Account opening and have seen 60% increase in their volumes and 51% reduction in fraud and 80% reduction in cost of opening an account.

The Early Majority are the financial institutes that have begun their digital transformation journey and have high fraud cases and comparatively lower volumes than the early adopters.

The Late Majority are the financial institutions that have not yet started their digital transformation journey of digital account opening and have the highest fraud cases and the highest turn-around-time for account opening.

How to Get Started with Digital Identity Verification?

Understanding the role of digital identity verification in any organization is the key to start your digital identity proofing or verification journey. Organizations of all types including BFSI, Government and Defense, Healthcare & Life Sciences, Retail and eCommerce, IT, Hospitality, Education, Travel can use identity verification to onboard a customer, help mitigate fraud, and comply with the regulations.

Some of the common scenarios for implementing digital identity verification are:

  • Online Account Opening
  • Loan Application
  • Re-KYC
  • Trading
  • Additional Product offering
  • Customer Registration in Hotels and Hospitals

Selecting the right Identity Verification Solution for your organization to make sure whether a vendor can deliver document- centric identity verification solution as per your business requirement.

The process for document-centric identity verification is simple and secure:

  • Capturing the ID Document: The customer takes a photo of their ID document.
  • Verifying the ID: The solution using Artificial Intelligence and advanced verification algorithms analyze the photo of the document captured by the customer to determine the authenticity of the document.
  • Liveness Detection: To ensure the customer is present during the process, they are asked to blink or nod their head or combination of both.
  • Authenticating the customer against the ID Document: The customer photo on the document is compared against the selfie/photo of the customer by using facial biometrics.

Digital Identity Verification Solution vendor offering a hub approach, which enables businesses to access different verification options via single API integration. The one-to-many implementation approach helps in higher pass rates.

Combining these key elements in a secure and spoof proof automated ID verification process can drive businesses with high efficiencies, reducing the cost of customer onboarding, minimize fraud and increase sales volumes by opening channels for businesses to serve their customers.

Recent Blog’s


Explore more

Risk Management

Key Risk Indicators -A Powerful Tool to Anticipate Your Risk Within the Enterprise

In simple terms, Key Risk Indicator (KRI) is a metric used to measure the level of exposure to risk. These are indicators that denote the …

Hongkong regulation blog| Gieom Operational Resilience
Operational Resilience

Hongkong’s Regulations for Operational Resilience

On 22nd December, 2021 HKMA (Hong Kong Monetary Authority) came up with a Supervisory Policy Manual for Operational Resilience to provide Authorized Institutions (AI) with …

Operational Resilience

Irelands’ Financial Service Sector Guidance on Operational Resilience

The Central Bank of Ireland`s objective of this guidance is to communicate to industry how to prepare for, respond to and recover and learn from …

US Regulation Blog-Gieom
Operational Resilience

New Operational Resilience Regulation for Financial Institutions in United States (USA)

The Federal Reserve, the Central Bank of the United States in August 2021 has released a paper intended to help community banks assess threats when …

Operational Resilience

Process Mapping is an important step in building an Operational Resilience Framework

The Covid -19 pandemic has clearly shown two trends within firms: The intensified use of technology and Operations can be managed through digital work force …

Game-based Learning

What is Game-Based Employee Onboarding? Tips and tricks to implement the right gamification strategy

Learning begins with joining. Effective Onboarding contributes to a newbie commencing with confidence, feeling supported, and acclimatizing much sooner. Conversely, employees who spend weeks and …

Digital Transformation

Strategies for Improving Banks’ Operating Efficiency

Banks occupy a place of pride because of its structure of undivided attention and contemporary functions. They have come an extended way from merely performing …

Operational Resilience

Growing Importance of Operational Resilience in the Digital Era

Operational Resilience assumes that things will go wrong, and it will force organizations to plan on how to recover from the disruption. It is a …

Digital Identity

Why are organizations jumping onto the AI-enabled Identity verification bandwagon?

Who has not experienced being asked to show some kind of government ID, be it to receive your courier, or check into a hotel, or …

Digital Identity

What is Identity Proofing?

As per the Digital Identity Guidelines published by NIST, a US agency, Identity Proofing is verifying the claimed identity of an applicant by authenticating the …

Digital Identity

New Amendment to KYC Regulation by RBI – 10th May, 2021

In Jan 2020, Reserve Bank of India amended the KYC norms allowing banks and other lending institutions to use Video based Customer Identification Process (VCIP) …

Digital Transformation

5 Steps to a Successful Execution of a Digital Transformation Project

Digital Transformation is bringing about a radical shift in the way you run your business, deliver services or manage your customers. The objective of digital …