The so-called Now-Economy products – business ideas that make it possible to use a service instantaneously – are currently experiencing strong growth. An example of this is the worldwide success of innovative fintech and insuretech companies that enable their customers to sign up for insurance or to open a bank account in a matter of minutes via a smartphone. Established companies like many traditional financial and insurance institutions are under increasing pressure to digitize their customer processes. Improved productivity, competitiveness and protection against cybercrime are the motivation.
These changes in the market hold new chances for many companies to rethink their products and processes and to approach the market with new revolutionary ideas. The growing demand for digital approaches has already resulted in a number of innovative products that offer optimal digital customer experience and thus are very successful. But how can insurance companies and banks design a completely digital product that achieves high conversion rates while offering their customers maximum security and compliance with regulatory standards? More and more companies from a variety of industries are using a professional, digital KYC (Know Your Customer) solution.
An automated solution based on AI (artificial intelligence) is the optimal identification solution for numerous use cases and industries. It enables compliance with regulatory requirements and security standards while providing fully digital customer experience and a fast and easy process.
What can clients expect from state-of-the-art ID verification?
Maximize conversion. An enormous advantage of digital and fully automated solutions is the good customer experience and the extremely high conversion rates. By avoiding media discontinuity when contracts are signed, companies can achieve conversion rates of up to 90% with such solutions and also achieve a positive first customer experience in onboarding. Recent market observations have shown that above all, a young target group, attaches great importance to the now and it is much more willing to buy simple processes that can be carried out completely via the smartphone.
Prevent fraud. Digital, AI-based solutions also outperform conventional solutions in the area of security. Artificial intelligence and machine learning technology guarantee the highest quality and accuracy. When it comes to checking security features on ID documents or biometric checks, AI technology is much more accurate than any human could ever be. In recent years, cybercrime has become increasingly important and fraudsters are constantly developing new approaches. A study by Cybersecurity Ventures reports that cyber fraud will cost the global economy 2021 USD 6 trillion a year.
Regulatory compliance. Regulatory authorities are setting strict standards for fraud prevention. A digital KYC solution should be able to meet these requirements beyond national borders and also be able to comply with the extremely stringent requirements of the GDPR.
Designed for business. To make the integration of a SaaS solution truly successful, you need a partner who has experience with international corporations and their needs. A good solution provides a comprehensive and seamless answer to all identity verification needs, with a single API integration.
In conclusion, digital, automated KYC is a simple and extremely efficient process that convinces customers right from the start and gives companies a great competitive advantage. In the Now-Economy, services must be provided even more directly and instantly. Above all, this means cleverly circumventing traditional media breaks when concluding contracts. AI-supported identity verification services such as IDnow’s “AutoIdent” are comparatively easy to integrate into platforms as cloud-based services, and also offer traditional companies the opportunity to win digital-affine customers.
How does such a solution work?
IDnow AutoIdents artificial intelligence recognizes the country and the type of ID document via the smartphones camera without the need for user input. The technology then captures both the machine-readable part of the ID document and areas that are not machine-readable, such as address fields. In the next step, artificial intelligence automatically checks the optical security features of the ID documents, such as holograms. With the subsequent biometric video check of the person and liveness detection, the identification process for the customer is completed in just a few steps. On the basis of the recorded data, the system is able to decide whether the identification is valid with reliability far exceeding the legal requirements. Artificial intelligence and machine learning technology guarantee the highest possible quality and accuracy.
About Andreas Bodczek
Andreas is a digital entrepreneur, business executive and thought leader. In his role as IDnow’s CEO he is on a mission to grow the highly successful Identity-Verification-as-a-Service (IVaaS)-Provider into a global enterprise. Prior to working with IDnow, Andreas co-founded and scaled mobile ad tech platform Fyber N.V. with presence in Berlin, San Francisco and Tel Aviv, where during his tenure he drove organic growth as well as through M&A.
About IDNow
With its Identity Verification-as-a-Service (IVaaS) platform, IDnow has set out to make the connected world a safer place. IDnows unmanipulable identity verification is used across industries conducting online customer interactions that require a high degree of security. IDnow uses artificial intelligence to check all security features on ID documents and can therefore reliably identify forged documents.
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