Manual Identity Verification on the Rise as Businesses Cite Importance of Accuracy; Regula Reveals

New Research Conducted by Identity Verification Solutions Provider regularreveals that banks and fintechs are ready to meet the new challenge of identity verification.

‘Current state of identity verification in 2023A report by Regula describes a spike in foreign document verification incidents at financial services firms. Of these, 80% reported an increase, particularly in countries such as France (86%), Turkey (86%) and the United States (85%). A staggering 44% of all respondents are facing a 25% increase in trading volume over last year. Additionally, 62% of these companies manually verify foreign documents, a time-consuming process.

Thirty-eight percent of fintech companies and 31 percent of bank respondents cite accuracy as the most important consideration when choosing an identity verification solution. As a result, an increase in the number of manual checks is a serious “red flag” for the industry, Regula explained.

Henry PatishmanExecutive Vice President of Identity Solutions at Regula commented: In particular, global migration and the expansion of the digital nomad community have highlighted the need for companies to operate expanding databases with a wide range of document templates, including rare specimens. Shortages can reduce the accuracy and thoroughness of document verification checks, which can increase the risk of fraud.

“That’s why we continuously update our database, which now contains over 12,000 document templates from 247 countries and territories, Regula Document Reader SDK. Regula’s experts have extensive knowledge of what security elements should be, so based on current documentation, all possible identities can be easily verified, and even the most sophisticated fraud can products can be used to quickly detect “

Regula Criteria for Choosing the “Right” Identity Verification Solution

An identity verification solution provider explained what financial institutions should consider when choosing the best tools to meet the emerging challenges:

• The size and variety of the document template database provided by the solution
  A tool featuring a database containing detailed information on all current documents issued in various countries, their security parameters and verification methods. You need to be able to perform comprehensive identity checks quickly.
• Availability of liveness checks in the document verification flow
  The solution encompasses both document verification and biometrics, verifying both document and individual viability to provide strong protection against fraud. Document liveness confirms the presence of dynamic security elements (such as holograms) within submitted documents to ensure that a remotely presented passport or ID is genuine, but biometric liveness Sex detects whether the claim is made by a live human, not impersonated or fake.
• Compare faces and match selfies with ID photos
  To mitigate online identity fraud, your solution should compare the user’s ID image with the portrait of the ID (such as a chip or MRZ).