Digital ID is exhibited as one of the great economic and social revolutions of our time. Companies and organizations have adapted their processes to incorporate Digital ID and be able to grow in a competitive and uncertain environment.
Digital identification has answered to many of the needs of today’s economy and society: from the demand of users to be able to carry out procedures and issues anytime, anywhere and through any channel to the purchase-sale and contracting of products and services, as well as the automation and digitization of processes in the physical locations of companies and institutions.
However, given the current health situation, Digital ID has changed from being a key element for growth to one essential for the continuation of businesses and organizations in all sectors.
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Understanding IDentification and Digital ID concept
We define IDentification as the action and effect of identifying. After proper identification of people, it has been officially certified that these people are really who they claim to be. It is the basic way of distinguishing one person from another and assigning them a series of data and characteristics.
Thus, for example, after identifying themselves, customers can access their products and services, or if they do not have any ones assigned, they can register their identity in the database of a company or organization in such a way that they can later buy, contract or purchase products and services.
This concept is crucial when, for example, we talk about ID impersonation or identity theft. This is something more common than we think given the dynamics of today’s society and economy.
Digital Identification for the online world
Faced with an offline/analogue conception of IDentification, where a person in an establishment, for example, checks a person’s identity document and compares it with their face, Digital ID reinvents this process to optimize it and improve it.
Therefore, a Digital ID software is a set of digital procedures that, through a computer-developed system, are capable of verifying the identity of a person.
Although Digital ID verification solutions replaces “manual” IDentification methods in establishments, commercial offices or physical locations of a company or organization, improving efficiency and productivity, its birth was caused by the need to identify users who operate through the internet.
This process is commonly known by companies as KYC (Know Your Customer or Know Your Client) and must be implemented in your user registry systems and onboarding processes to operate with security, guarantees and complying with the regulations of your sector.
This process is especially delicate in areas associated with finance: banking, insurance, investments, trading, proptech … Not just because of the risks that online identity theft may entail, but for its mandatory implementation, given the current regulatory and legal framework.
How Digital ID works
A Digital ID software, despite being complex, delicate and technically advanced, is agile, simple and fast for those who carry it out. It is important to understand that the process can be carried out through different types of system, which will define its security, guarantees and regulatory support.
The AI-assisted streaming Video IDentification is the safest and only one that allows registered users to carry out any type of operation or activity online with total security, unlike identification systems based on static images or selfies., which do not meet the appropriate requirements.
Digital ID procedure works as follows:
- The user initiates the process.
- The video starts and users must show their ID document on both sides.
- After this, users are asked to look at the camera and smile.
- The Digital IDentification process has been successfully completed.
During this series of steps, a set of technical and security checks and controls are carried out in an automated way thanks to the solution’s tools based on artificial intelligence and machine learning. For added security, it may be decided to have a human agent check for the video afterwards.
Digital ID is also assisted by other techniques:
- Electronic Signature: Advanced and qualified electronic signature supports the Video IDentification process for the signing of sensitive documentation in, for example, contracting processes.
- Authentication Systems: Once the identity of the user has been verified and registered in the system of the company or organization, Authentication systems such as SmileID, provides the client with an agile and secure experience to be able to access their panel to make use of their products or services and carry out any type of online management or issue, regardless of its specific nature.
Requirements and regulatory framework for Digital ID
In order to implement Digital ID in an organization, it is essential to remember that it must be rigorous in terms of compliance and regulations so that it can be carried out.
The most prominent regulations in the field are AML5 (Fifth Anti-Money Laundering Directive) and eIDAS (electronic IDentification, Authentication and trust Services), which must be alleged and at the same time allow companies and organizations in any sector to extend their reach throughout Europe.
Download here for free our complete guide on AML5 and eIDAS, the standard regulations to implement Digital ID.
Benefits, opportunities and development of Digital ID
Digital identification represents a key boost for online and remote business development. It has promoted the digitization of physical locations and allows actions previously unthinkable.
Some of the many opportunities and benefits of Digital ID are:
- An exponential increase in customer acquisition.
- Increase in conversion ratios.
- Costs reduction.
- Increased productivity.
- Process simplification.
- Possibility of global expansion.
Check here a wide variety of Digital ID use cases associated with the implementation of Digital ID solutions in companies and organizations.
How to choose the best Digital ID solution
Beyond the basic and essential issues such as security, compliance with the most demanding regulations and guarantees, when considering a Digital ID system, it is important to bear in mind other crucial aspects that will make the difference between a quality Digital ID solution and one that will not add value or reliability.
Relying on a trusted and consolidated RegTech partner to integrate a Digital ID comprehensive system into the organization is essential to ensure the basic issues previously discussed. Beyond that, it is important that the solution provider takes care of essential elements such as user experience during the process and its interface, in such a way that potential clients do not leave in their attempt.
The solution must be multi-channel, universal and must be able to be integrated into all the company’s channels, from its website, mobile apps, hardware in physical locations or any type of remote access that the user holds in order to access the company online.
This way, it will be granted that the digital identification systems we are choosing works rightly, easily integrates into our systems and helps the organization or company grow while improving the onboarding experience for customers.
Contact eID here and request a call with one of our experts in digital identification solutions.