Orchestrate digital ID to simplify KYC process: Jumio
A streamlined know your customer (KYC) journey and digital ID orchestration through a single API will become the future of the anti-fraud market that will demand an ever smoother user experience and security, and polarize the sector into “orchestrators” and the “orchestrated,” according to a speaker from Jumio at the European Identity and Cloud Conference (EIC 2022).
Ingo Ernst, the general manager of Jumio’s platform division, gave a presentation titled ‘Why KYC Isn’t Enough,’ where he emphasized the “need to be on top of the details” with the KYC and AML (anti-money laundering) market to build a profile of the customer. With Jumio’s industry surveys showing a notable rise in fraud and with businesses anticipating levels of fraud to increase due to the COVID-19 pandemic, it also sees companies taking action against fraud with boosted investment. Eighty percent have already made changes to their anti-fraud programs.
The post-pandemic environment for KYC and AML that Ernst envisions will require customer digital identity lifecycle management without compromising the user experience, where onboarding, authentication, and ongoing monitoring of customers will be necessary. Yet Ernst says the key question for this process remains whether you can trust the person onboarding as who they say they are, and as part of an ongoing process.
But Jumio sees businesses struggling to maintain large quantities of data to mitigate the risk. With customers having to juggle multiple third-party APIs for data, Ernst says it leads into pain points like organizing multiple contracts and developer resources that affect the integration time and slow the time to launch. These feed problems into a fragmented view of risk from manual reporting and rules per API.
The solution, Ernst suggests, is a single API to solve data and risk management pain points. This would feed into having only one contract to manage and minimal developer resources, which leads to quick integration and a rapid time to market. Rather than a fragmented view of risk, this would create a centralized view.
“What you need is actually to have just one single integration and hopefully just one single contract. And this then actually allows you within that platform that you choose and within that single solution provider, to activate the data ongoingly that you need at the right time of the interaction with the client,” Ernst says.
This involves a certain workflow with the ability to activate data points and make them work in an intelligent way and integrate a new data source within days and not weeks or months, he says. This leads to a centralized view of risk that gives a “single source of truth” that grants awareness of risk from organization’s point of view or within an employee’s role as a compliance manager or other positions.
Citing a 2022 market research report from Gartner that suggests that by 2023, 75 percent of organizations will be using a single vendor with strong digital identity orchestration capabilities and connections to third parties for identity proofing and affirmation, Ernst remarks that, “you’re either going to be orchestrated or you’re going to become an orchestrator.” From this market movement, he says orchestration starts from data like identity verification, face biometric authentication, and various types of verification such as email, device, address, and phone. This will need healthy cooperation and competition with the big data sources, who see the value in collaboration, Ernst says.
AML | API | biometrics | digital identity | EIC 2022 | face biometrics | fraud prevention | identity orchestration | identity verification | Jumio | KYC | onboarding | user experience