Electronic identification is a useful tool for financial institutions that help prevent fraud and money laundering. It screens telephone numbers against multiple federal and international watch lists and has a low monthly fee, no minimums, and can be easily integrated into existing systems. IdentiFlo is 100% New Zealand-based and uses multiple data sources to validate client details. This helps ensure accuracy, reduce risk, and support customer relationship building. Its flexible and reliable process is used by many businesses of all sizes.

While firms have been experimenting with electronic identification, there is still a lack of standardization in practice. As firms consider their risks and responsibilities, they may be hesitant to adopt it. There are many factors to consider, including the potential costs and risks associated with using external providers. Some firms may not be able to afford to change their processes to implement electronic identification, such as the need to implement biometrics. Some other barriers may also discourage a firm from implementing electronic identification.

How does electronic identification work?

As more firms adopt electronic identification, it is important to understand how these new systems work and how to implement them. While many firms have adapted these solutions to improve due diligence processes, they still need to conduct due diligence. While electronic verification is relatively easy to implement, some firms are still hesitant to do so. Despite its ease, it may require significant changes to existing processes. These changes will be difficult to make, so the time to make the transition now will be well spent.

Besides, electronic identification is the fastest way of ensuring the authenticity of a customer. By analyzing a customer’s identity data, a business can identify the legitimacy of an applicant. The process also helps businesses reduce costs associated with impersonation. Various factors contribute to the security of a company’s identity, including fraud.