An online consumer identification system has been developed for the financial services sector whi...
An online consumer identification system has been developed for the financial services sector which is designed to deal the growing problems of money laundering in the UK.
Called "e-Identity", the new product from information solutions provider Experian removes the need for paper-based identification such as passports, driving licences or utility bills when opening a bank account and buying investment products.
Instead of handing over key paper information, anyone using the service can authenticate the identity of the consumer by using a real-time online scoring-based identification system which confirms that the person does exist and is who they claim to be.
Systems are based largely on an exiting model adopted by the retail sector, which has a 90% success rate for identifying fraudsters, and are compiled by pulling together public and proprietary data sources to 'score' the consumer's authenticity.
Products such as this not only allow providers to speed up genuine authentication through its online link, but it is also expected to meet new money-laundering guidelines requiring financial firms to adopt a "risk-based approach" to customer identification.
A series of European and UK legislative reviews are being conducted to ensure the financial services industry is taking proper measures to validate the identity of their customers and investigate unusual transactions.
Richard Fiddis, coo at Experian, says the new product should leave firms with more time to concentrate their efforts of the minority of suspicious cases.
"e-Identity as a solution for money-laundering provides financial organisations with a scientific-proven answer to the problem of consumer verification to enable them to quickly identify possible money-laundering attempts, while offering a fast track online approval service to their genuine customers."
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