New Reality

Protecting public health has become a matter of the utmost importance in connection with the spread of coronavirus. All sectors of the economy are suffering the effects of restrictions imposed by the government, prohibiting movement, and closing many retail outlets. Financial institutions, in particular banks, found themselves in an unprecedented situation. Even though these banks are necessary in our lives, according to the Credit Information Bureau, the closing of branches has significantly reduced customer interest in financial services. On the other hand, there are companies that, in the absence of liquidity, are forced to take out loans to stay on the market. In the face of a potential crisis, only well-prepared institutions will be able to provide their customers with security and service at the current level, while maintaining all security measures against a pandemic.

The new reality forced companies to find a way out of the situation where the client is no longer able to physically appear at the facility. Institutions that want to stay on the market are forced to look for modern solutions and answer the question of how to safely verify a customer applying for a loan or wanting to set up a bank account. More and more financial institutions offer the possibility of creating an account during a video call. However, not all solutions are equally safe and comply with the regulations that have been set by the Polish Financial Supervision Authority.

Considering this, digital banks are gaining popularity. Neobank is an institution that can offer banking services online, which so far were only available at a bank branch. Most banks offer also online services, but digital banks are entirely electronic. This is what makes challenger banks a growing market. Every level of banking has been digitalized and made available online, from the creation of an account to wire transfers and loans as well as personalized money management services. What is important, also onboarding new clients is done entirely online. That’s why implementing a proper KYC process for digital banks is so important.

Some financial institutions offer contact with clients through widely available applications such as Skype, Zoom or WhatsApp. Identification and verification of identity as well as signing a contract takes place during a video call. However, such a solution may lead to various legal and operational problems. During these conversations, personal data and identification documents are shown. Normal commercial messengers are not recommended by industry experts because they are not completely secure. They rely only on the employee of the financial institution who confirms the identity of the potential customer.

Video verification must meet appropriate standards. According to the regulation of the PFSA, institutions should use encrypted connections to ensure the highest possible security for users. They should carry out a risk analysis that takes into account the video verification model, applicable technologies and control mechanisms that will ensure an adequate level of security. Client-side hardware requirements are another important aspect, including minimum requirements such as camera resolution. Another necessity is to archive video records.

There are many verification technologies available on the market today. They are based on biometric verification, voice, fingerprints, facial features and blood vessel system. However, they lack a human factor that is better suited to detect attempts of forgery and extortion. Sometimes cheating on these solutions is as simple as scanning a photo printout, using a recorded movie or wearing a special mask.

A reasonable option is to use dedicated online identity verification services such as Fully-Verified. Tools of this type are specially designed for identity verification, which is supported by the latest technology such as biometric face recognition, automatic recognition and verification of documents, artificial intelligence and machine learning. The application also meets the highest standards regarding identity verification, including Regulation of the European Parliament and of the Council of the EU No. 910/2014 of July 23, 2014, and the Regulation of the Polish Financial Supervision Authority as well as the more restrictive European regulations of the German BaFin and the Swiss FINMA.

The Fully-Verified app takes the best in technology and uses it in the background, allowing the verification specialist to decide the final result during the video call. This is a process during which ownership of documents is verified live, that eliminates the problem of people using fake or stolen documents. The data on the document, MRZ and check numbers are verified. The document is compared to a template and checked for forgery, holograms, and document edges as well as customer behavior are verified. The entire process is registered and saved. Video from each process is available to watch and can serve as irrefutable evidence for the future. And the whole process lasts about 7 minutes.

Digitization of the environment and the move to online services has been accelerated by a virus pandemic, but this was unavoidable. Regardless of whether social isolation would take place, most companies planned to transfer their services also to the internet platform. It is the perfect time to present the company as innovative and keeping up with the latest trends. Technologies now being introduced as innovations will soon be a standard in every company. Carrying out strong and secure authentication will now result in customer trust and a competitive advantage in the market.

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Fully-Verified was created as answer to its founders collectively losing over $150 000 to various types of fraud in their eCommerce businesses.