In the digital age, identity verification has evolved from cumbersome physical processes based on scanning traditional ID documents (or performing large numbers of expensive data checks at credit agencies) to sleek, secure digital methods.
Driving the highest return on investment for companies in this transformation is document-free digital identity verification (IDV), a process that uses third-party authentication algorithms from banks to correlate IDs and streamline and secure personal identification.
Consumers can prove their ID in just a few clicks using the app from their bank, already in their pocket, and set up the payments they need to make when purchasing online. Onboarding rates increase markedly, and fraud is cut big time. Consumer satisfaction rises.
In Europe, this is called BankID, and it’s a favourite with consumers as it's so easy to use. In the UK, we call it OneID®.
OneID® customers report 50% increases in digital onboarding rates, far lower fraud, and happier consumers. The UK government, which sets the standards for online safety, has already certified OneID® under a digital trust framework.
This is the next step in the journey to provide consumers with really simple, easy, and quick ways to prove it's really them.
The evolution of identity verification: from physical to digital
We have left behind us the days of presenting a stack of physical documents to prove our identity. From there, we've moved to scanning documents and selfies to prove that we are who we say we are.
The need for more streamlined and fraud-proof solutions has ushered in an innovative paradigm where digital ID verification eliminates the need for paper-based evidence. This shift not only reflects our society's embrace of digital solutions but also signifies a leap towards enhancing security and convenience in an age where deep fakes are proliferating and data compromise is widespread.
By leveraging advanced technologies such as behavioural biometrics and strong customer authentication from the open banking infrastructure, document-free digital IDV offers a robust solution that combats fraud more effectively than traditional methods ever could.
Document-free digital ID supporting UK Government legislation
To secure the digital world, the UK Government's Department of Science, Innovation and Technology (DSIT) has developed new legislation enabling document-free digital ID and certifying OneID® under the Digital Identity and Attributes Trust Framework (DIATF).
Now in final readings, the DPDI bill is becoming an Act, bringing confidence to companies that digital ID is delivering privacy by design and data is not exploited. Digital ID is a cornerstone of the Government's Online Safety Act, enabling a safer internet. This allows AML regulators to use digital ID methods that don’t require a passport, and further innovation is coming with updates to the MLRs
Greater ease and security in document-free IDV enabled by open banking
The growth of open banking infrastructure and the rise of APIs has brought unmatched seamlessness in the way information is exchanged digitally between individuals, businesses, and banks. This has become the cornerstone for bank-verified digital IDV, which has had 99.4% adoption in Sweden and is being offered in the UK by OneID®.
By leveraging an end-to-end digital solution, individuals can prove their identity online without having to scan their government-issued identity document or upload a selfie. The solution integrates multiple data sources in correlation to block the possibility of synthetic identity documents, which have increased in prevalence because of modern AI-enabled abuses.
OneID® completes the IDV journey in under 12 seconds from anywhere and on any device. The result is a much smoother experience designed for the digital age and happier consumers. DocuSign reports pass-through rates of 95% using OneID®, far higher than other ID methods.
Streamlining customer onboarding: the competitive edge
In today's fast-paced world, the efficiency of customer onboarding processes and account servicing can be a significant differentiator for businesses. Document-free digital IDV offers an unparalleled advantage by streamlining the onboarding experience.
Customers now expect rapid and hassle-free interactions, and by adopting document-free digital IDV, businesses can meet these expectations, enhancing customer satisfaction and loyalty. This competitive edge not only attracts new customers but also retains existing ones, driving growth and reinforcing a brand's reputation as a leader in digital innovation.
Overcoming challenges in traditional verification methods
Traditional identity verification methods are fraught with challenges, from the high risk of document forgery to the cumbersome process of handling physical documents. These methods often result in a suboptimal customer experience, characterised by delays and frustration. Document-free digital IDV addresses these issues head-on, offering a solution that is not only more secure but also significantly more efficient. By eliminating the need for physical documents, businesses can save on operational costs and expensive errors and speed up processes - setting a new standard for security and convenience.
Bank-verified digital IDV: a catalyst for greater identity inclusivity
Legacy identity verification methods could only be used by individuals who hold a passport or a driver's license. But 13% of UK adults don't have a passport, and 23% don't have a driver's license. With bank-verified digital IDV, 50 million UK adults who have access to online banking can prove their identity.
By integrating OneID®, you can verify and onboard 90% of the UK's adult population.
A better experience brings larger online revenues and lowers fraud
OneID® customers report 50% increases in digital onboarding rates, far lower fraud, and happier consumers.
OneID® is working to bring a competitive advantage and ensure digital relevance for traditional and new brand propositions.
The future of digital identity verification is here now: trends and predictions
In conclusion, the future of digital ID is not on the horizon—it's already here, transforming the way we verify identities in a documentless world. By embracing this innovative approach, businesses can enhance security, streamline onboarding, and contribute to a more inclusive financial environment. As we continue to navigate the digital age, document-free digital IDV stands as a testament to our collective progress, offering a glimpse into a future where digital interactions are more secure, efficient, and inclusive than ever before.
See OneID® in action here.
