Identity verification is becoming widely popular as businesses from different industries are using it. But, could identity verification be good for your business? Well, let’s find out; this article highlights some of the main benefits of business identity verification.
Why your business needs identity verification
1. Crime Prevention
First of all, identity verification can help to protect your customers and your business from criminal activity such as money laundering, fraud, and theft. Today’s fast-moving world is a dangerous place and your customers know it. That’s why it’s important that you are seen to do everything you possibly can to protect them. The online world is a highly competitive market space which means your customers can easily go somewhere else if they don’t feel ‘safe.’
One of the main benefits of identity verification tools is that they can help protect your business and your reputation. If you run an e-commerce business and any other type of business that deals with online transactions, then you’d be mad not to use identity verification. Not only will it ensure that your online transactions are legit, but it will help you comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) rules.
Nobody wants to be associated with ‘dirty money’ because you could end up getting hit with hefty fines, and it could also damage your reputation. Ensuring you have an effective identity verification system in place is one of the best measures you can take to prevent this from happening.
2. Reduced business costs
Identity verification won’t cost you an arm and a leg. Of course, there will be initial costs to set it up, but you will save money in the long-term. Identity verification can be set to be automatic; thus, it no longer requires manual processes, and this will save you time and money. As well as reducing your business operational costs it also reduces the chances of human error because it’s all done automatically by highly sophisticated systems.
3. Age verification
Identity verification can also help businesses who offer age-restricted products or services and need to comply with the laws and regulations relating to that type of industry. It’s crazy to think that some websites still ask for date of birth to verify a user’s age. This process is totally ineffective – we’ve all lied about our age at some point in our lives, right? If this is how you verify a user’s age – stop now. This could land you in real trouble. Identify verification is a much more effective way to verify a person’s age. This is something which the tool Cognito HQ outlines as a key feature on their website. Their service can verify key details starting with just a phone number and will help ensure you’re meeting compliance.
4. Improves conversion rates
Lastly, identity verification is a quick and easy process which allows you to verify a customer’s identity in real-time. They no longer need to send in photocopies of their ID which improves the overall user experience which will lead to a higher conversion rate.
As you can see, identity verification helps online businesses deliver a seamless user experience. Plus, it helps in reducing the risk of fraud and maintaining compliance.