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Digital Identity Verification Heating Up In The Financial Services Arena: What We Can Expect

 

Recently we saw the announcement by Zumigo Corporation of their milestone of protecting 100 million consumers from bank account takeover fraud. Digital identity verification has taken a front seat on the agenda of many companies recently, thanks to the realization of its importance and the correspondence investment being made. By 2024, the global digital verification market is slated to hit $15 billion. More recently, Incode raised $10 million in seed funding for its biometric identity platform and tools. However, they are not the only ones pushing forward on identity verification development in the financial services area and in the coming months, the financial services industry can expect to see even more developments in the digital identity verification area.

IDnow's Identity Verification As A Service Cybersecurity Platform

Recent reports have revealed that German tech company IDnow has managed to secure $40 billion in equity investment funding from its new partner Corsair Air. The capital injection is intended to fund an expansion of both their geographical reach and their product range. The company has been known to its AI power digital verification platform and tools. In February, the company announced its intention of minimizing in-person verification and replacing it with video chat and facial recognition software for tasks that would require the in-person validation or long difficult online authentication processes. With 7 in 10 people in the UK now banking online and 70 percent of Americans utilizing digital or mobile banking, the banking industry in some of the major markets can be considered ripe for this step forward.

Jumio Go's Real-Time Verification 

Artifical technology provider Jumio has been in the news headlines multiple times this year with its launches and developments. In March, the company launched a selfie verification technology named Jumio Authentication. The development was meant to be a more detailed alternative to existing biometric authentication platforms and services, by creating a 3D identity map that minimizes the chances of identity replication/imitation. During the enrolment process, the user is asked to take a photograph of their government issues ID which is scanned with anti imitation technology. Later when the user wishes to log on, they are asked to do another video selfie where the 3D face map is completed. 

However, a more recent development has been the beta release of Jumio Go, a real-time automated identity verification solution. According to the company president, the software works uses big data and artificial intelligence to allow for instant online identification verification. This addresses the issue of a time delay that continues to be present in digital verification and reduces the opportunities for manipulation. Other companies are also looking into other real-time identity solutions including streaming. According to Joshua Baker, streaming can positively influence computationally intensive tasks for employees in the financial services sector. FaceBanx and X-Sight Marketplace customers can use live streaming biometric technology to the verification process to prevent fraudulent account openings. 

Dwolla & Onfido's Partnership For AI-Powered Identity Verification

Digital identification verification company Onfido announced its partnership with US-based fintech firm Dwolla earlier this month. The partnership has been formed to refer consumers both ways for identity verification and money movement, indicate the increasing use of industry and service collaboration we can expect to see much more of in the coming year. Onfido is also slated to present at Money 20/20 this year where it will showcase new opportunities for monitoring identity data capture quality, the introduction of a model that rechecks the system's work and decisions along with heat map-enabled decision logs aimed at improving auditability.

These are just a handful of what is to come. With the Money 20/20 Exhibition Event slated for October 27-30 this year, we can expect to see many more technology companies showing up to announce and securing funding and new additions to their suite of digital verification offerings. As the momentum in the fintech revolution continues, digital verification companies are taking advantage and capitalizing on the openings. The days of passwords and two-factor authentication are rapidly being left behind- as we pursue a more integrated and immediate solution to security in the financial services industry.

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Published Tuesday, October 29, 2019 7:10 AM by David Marshall
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