A variety of enterprise industries are leveraging the identity verification solutions, such as Compliancely that are available in the market. While incorporating identity verification infrastructure is just the starting point of compliance in accordance with AML and ATF regulations, the scope for effective utilization of identity validation is plenty.
It is important to understand that every business has different identity verification requirements to accommodate the various KYC and AML compliance directives of their respective industries.
Often businesses incorporate the solutions on a whim to streamline the internal processes, unable to foresee the inefficient and inconsistent experiences that some identity solutions could bring.
These inconsistencies turn out to be immobility challenges that prevent the business from achieving compliance and even if they do, the value does very little justice to the expense ratio.
So, if you’re someone who is currently conducting market research to understand the various possibilities of incorporating identity solutions, here are some challenges to which you need to pay attention.
The following will discuss some of the most common challenges of identity verification and how businesses can overcome these challenges through advanced approaches.
So, let’s get to it.
Identity Information Inaccuracy
Not all identity solutions can offer real-time identity validation experiences. Synchronizing the identity records in accordance with the authorized data lists of the government and federal agencies is a complex task.
Most solutions in the market will help you match the identities but not with real-time accuracy. This means the records could be historic, inapplicable, unauthorized, or could be sourced from a third party with a non-conclusive source. If you are just interested in record matching and not real-time validation, then these solutions will get the job done.
However, if you’re looking for real-time identity validation, investing in niche, industry-specific identity verification infrastructure, such as Compliancely, is worth the shot.
Data Availability & Accessibility
Businesses may not have access to real-time data lists. And the published data files on the federal directories are too complicated and vast to navigate through, which increases the workload on your internal compliance teams and further widens the turnaround time ratio for each inquiry.
Some businesses, although equipped with the manpower to beat the odds of turnaround time, may not be able to access such large files every day without authorization conflicts and privacy regulatory prohibitions.
While accessibility is just one side of the issue, complying with the privacy regulations is a tedious task on its own. Approaching third parties for sensitive information and insights, such as credit reports, financial capacities, criminal background, and more could violate the privacy regulations of customers/users and the state. And each of these violations could attract hefty civil penalties.
The code of conduct for identity validation is an intricate element of a robust and authorized identity verification infrastructure that many are not aware of.
Expensive & Ineffective Solutions
Some solutions do address the identity verification requirements of customers as promised but they come with a pricey deal. Small and medium businesses or agencies that are just learning to digitize their compliance ecosystem might be overwhelmed at the range of features and the expense brackets of these solutions.
While large businesses are ready to bear the additional overhead, the value that some of these solutions deliver may be disappointing, almost making the financial and technical efforts go in vain. And even if there is value, certain solutions, no matter how good, simply do not fit into the landscape of an ecosystem, making them ineffective or dormant.
Inconsistent Customer Experiences
Thousands of businesses are choosing to digitize their products to provide a better experience to their customers. The only inertia in this approach is the inability to scale up the digital ecosystem to match the customer experience, user flow, and interface.
Although some identity verification solutions promise the versatility of the digital interface, they may not be able to fully scale their operations in the digital sphere to suit your CX schemes. This could be due to technical and operational prohibitions.
However, truly digital identity verification solutions, such as Compliancely can easily help you prevent these issues and possess the bandwidth to scale up your digital account opening experiences and fit into the interface to meet your CX specifications.