Electronic Identity Verification

Electronic ID Verification

Electronic ID verification, or EIDV, is a method of confirming the identity of an individual, usually using a combination of public information and private databases online. With EIDV, the customer will provide standard details like date of birth, address or National Insurance number, and this information will be cross-referenced with the customer’s electronic footprint.

In an EIDV search, the SmartSearch tool will filter through your customer’s digital trail, and if the details on file correspond with those found, you’ll have a match. However, if we’re unable to find enough evidence to confirm the individual’s ID, there could be a partial-match, or a no match at all.  

EIDV and Trust 

Handling identity checks digitally requires an element of trust – both from businesses and their customers. Consumers need to trust that wherever they’re submitting their information to is secure, while businesses need to trust that the software they’re using is robust. 

This is particularly prevalent within banking, where Which? figures show more than 3,700 branches have closed since 2015*, which has inevitably forced customers to take their banking online. Taking this industry as one example, we developed our Trust Barometer.

This tool pulls in up-to-date social media mentions of each of the high street and challenger banks, analysing sentiment to show which are the most and least trusted by their customers.

So, is there a trust issue among businesses when it comes to electronic checks? EIDV really is one of the most secure and efficient ways of checking an individual’s identity. However, SmartSearch research** has revealed that although almost 80% of businesses now use this method, almost half (47%) of senior decision makers admit there is some level of distrust in automated identity checks, while 21% still don’t trust automation at all. 

What’s more, despite thousands being forced to automate processes during 2020 due to the pandemic, more than one in five businesses admit to still having no automation in place at all when it comes to AML checks. 

Here we have explained the ins and outs of EIDV, so that you can make an informed decision for your business. For further reading, we’ve also created a free downloadable guide, which tells you everything you need to know about electronic verification, along with helpful advice for implementing EIDV processes. 

Who uses EIDV and why?

Due to its fast turnaround and accurate results, EIDV has become increasingly popular with financial institutions adhering to AML regulations. Companies that might rely on EIDV include banks, investment firms, financial advisers, insurance companies and even estate agents.

Why is EIDV used in AML checks?

EIDV is deal for carrying out the KYC element of AML checks, as well as further customer due diligence, like sanctions and PEP screenings. This is because an electronic ID search will not only verify their identity, but sift through the financial history of an individual, and identify anything which could make them a high-risk customer, like previous convictions of fraud or financial crime. 

EIDV vs. Manual Checks

While manual ID checks require physical documents from the customer, EIDV relies wholly on information found online, on both public websites and private databases. Faking an electronic identity is far more difficult than providing fraudulent documents in person – so EIDV ensures that no one slips through the net. In fact, there hasn’t been a single case of fraud recorded, where EIDV has been performed correctly. 

Why is EIDV becoming more popular?

With customer contact being severely limited by COVID-19 restrictions world-over, an increasing number of firms in the finance sector are turning to EIDV over manual checks. In fact, industry reports indicate that that EIDV’s compound annual growth rate could be as much as 13.1% from 2020-2025.

EIDV with SmartSearch 

­­­­­­SmartSearch is proud to offer an extremely thorough form of EIDV: TripleCheck. The Triple Check process intelligently combines data verification, the validation of customer documents and facial recognition for an incredibly comprehensive identity check.

Comprised of three distinct levels, the TripleCheck leaves no stone unturned. The first tier involves an AML check, screening for PEPs and historic sanctions. The second level uses a combination of photo ID, live selfie video and biometric facial comparison to carry out facial recognition. An extensive digital fraud check is then completed, as the third and final phase.

This market-leading solution will revolutionise your KYC process, and prevent you from wasting precious resources on manual checks.

*Source: https://www.which.co.uk/money/banking/switching-your-bank/bank-branch-closures-is-your-local-bank-closing-a28n44c8z0h5 - information correct at time of writing, December 2020. 

**Research carried out with 1,500 consumers and 500 senior decision makers by TLF on behalf of SmartSearch    

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