As companies explore improvements to digital identity in the UK, financial services firms are exploring the benefits of bank assured identity, according to a report from OneID.
The UK-based identity technology developer has released a new report that uncovers the potential value a bank assured identity model could have within the finance and leasing sector.
Bank assured identity enables customers to corroborate their identity quickly and safely using bank grade information with a third-party. This is completed via a secure transaction that can be completed within seconds and does not require uploads of personal identity documents, such as passports.
OneID’s research involved BMW Financial Services, JCB Finance, NewDay and United Trust Bank. It explored the potential use of a bank assured identity model in several use cases, including card and asset finance, and mortgage and credit card applications.
Its findings suggest there are a range of suitable places to implement the technology. Its benefits include gathering accurate and authenticated customer information in a quick and secure manner. It also boasts being able to utilise bank verified data as a way of reducing fraud and identity impersonation across a variety of products and services.
The final benefit OneID highlighted was the opportunity to innovate current processes to be more efficient, safer, and more appealing to customers as they can be reassured by the level of security when corroborating their identity.
The report makes a range of recommendations which could further extend the already significant value of bank assured identity to customers. These include:
One was that banks should extend the data they share, because it is currently focused on identity data held about individual customers. However, if the information was widened, for example to include business customers, then the bank assured identity model holds significant potential to be extended.
Other recommendations are to ensure the bank assured identity model is aligned with current standards and increase the research into other use cases.
In a statement, United Trust Bank said, “UTB is a forward-thinking organisation committed to exploring ways in which technology can improve customer journeys as well as our financial crime controls.
“In the last few years, we have invested in and implemented cutting edge digital ID verification and secure messaging solutions which both accelerate loan application processing and reduce the opportunity for fraud.”
In other digital identity news. Earlier this week, Bahrain’s identity verification startup FACEKI closed its seed round on an undisclosed amount.
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