Financial services sector supports digital ID to prevent financial crime

Eighty-one per cent of industry figures across the financial services sector believe the concept of digital ID would improve the effectiveness of financial crime prevention, a new study has found.

The survey, released by Duff & Phelps, A Kroll Business, polled professionals working within financial services and indicated that financial crime is currently the primary driver behind the adoption of digital ID services.

Duff & Phelps revealed that 34% of its survey’s respondents cited more effective Know Your Customer (KYC) processes as the greatest potential benefit to their company.

Other advantages cited were lower operational costs (20%), efficient ID verification (20%) and more robust verification processes (14%).

The data was collected from a survey conducted at the Duff & Phelps Digital ID webinar which took place virtually on 11 February, and had 40 respondents comprised of financial services professionals.

Duff & Phelps managing director, compliance and regulatory consulting, Mark Turner, suggested the need for a comprehensive digital ID service is “only growing more urgent”, as fraudsters increasingly target identity to deceive businesses.

“Companies are aware of the threat and our survey respondents cited the effectiveness of KYC processes as the primary reason for adopting digital ID,” Turner said. “Digitising this check helps businesses protect themselves, by building a clear picture of their customers and the level of risk they pose.

“As well as tackling financial crime, digitising ID verification will also save companies significant resources in terms of efficiency, resilience and costs. Digital ID is growing in acceptance and will underpin many initiatives as more firms implement digital verification schemes.

“Both businesses and customers will feel the benefits in almost all financial transactions, from buying their first home to accessing their pension.”

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