A recent whitepaper by Juniper Research indicates that traditional identity verification methods – Know Your Customer (KYC) and Know Your Business (KYB) – are no longer adequate. The report identifies a significant shift in the fintech landscape. It now includes continuous, agent-level governance in identity verification, extending beyond the initial customer and merchant onboarding.
This change mirrors the increasing complexity and dynamism of the fintech sector. It underlines the need for more comprehensive, ongoing verification processes, not just during the initial stages of customer or merchant interaction. With the rise in digital banking and online transactions, the importance of robust identity verification is more pronounced than ever.
The report emphasizes that the current KYC and KYB processes are incomplete. They focus mainly on the early stages of customer or merchant onboarding and lack continuous governance. This gap in the system could potentially expose businesses to fraud and risks from unverified identities.
Continuous, Agent-Level Governance: The Future of Identity Verification
The solution, as suggested by the report, is continuous, agent-level governance. This method ensures that the customer or merchant’s identity is consistently verified throughout their relationship with the business. In other words, verification is an ongoing process, not just a one-time event at the relationship’s beginning.
This approach not only minimizes risks from unverified identities but also builds trust within the digital ecosystem. Businesses that implement this level of identity verification are likely to gain more trust from customers and partners, potentially leading to increased business opportunities and growth.
Research Analyst Shane O’Sullivan’s whitepaper provides a detailed analysis of the evolution of fintech sector identity verification. The findings suggest that businesses need to adapt their verification processes to keep pace with the industry’s changing landscape. Failure to adapt could result in potential vulnerabilities and missed opportunities.
As fintech continues to evolve and innovate, the demand for advanced identity verification will only grow. The Juniper Research report serves as a valuable resource for businesses aiming to stay ahead of the curve and maintain the security and integrity of their operations.
