Global push to strengthen ID verification with selfie biometrics gains momentum
Selfie biometrics are being mandated for financial institutions in another jurisdiction, while SmartSearch has announced a new version of its KYC platform, new implementations have been announced by Shufti Pro and Mastercard, and a new set of resources released by Veriff. Meanwhile, consumers are most motivated to update their authentication methods by security concerns, according to Entersekt.
KYC policy changes in Pakistan, Philippines
The State Bank of Pakistan (SBP) has directed all financial institutions to adopt face biometrics to secure digital banking. The SBP wants implementation completed by December 31.
Banks and other financial institutions will have to implement selfie authentication services for customers who conduct digital transactions.
The SBP also reported that the number of users of instant and cost-effective Raast payment systems had grown 72 percent in the last six months of calendar-2022, while internet and mobile phone banking users had increased by 21 percent (10.1 million users) and 22 percent (15 million users), respectively.
The report also found that the use of digital payment systems, including mobile banking and e-commerce, is growing in Pakistan.
In an effort to simplify how financial institutions (FIs) in the Philippines comply with anti-money laundering and terrorism financing (AML/CFT) regulations, authorities have updated their policy guidelines for electronic know-your-customer (eKYC) practices.
The new guidelines stipulate that FIs must scan digital IDs, use anti-fraud and cyber security processes to authenticate those IDs, and ensure that all digital KYC practices comply with data sharing and privacy protection laws.
Multi-factor authentication is required, and automated KYC tools must have a false acceptance rate (FAR) of 5 percent or lower.
SmartSearch promises better compliance on new platform
An update to SmartSearch’s platform introduces an improved user interface and enhancements in a range of different areas, the company says.
Through the introduction of triple bureau data and “perpetual KYC,” as well as enhanced configurability, automation and integration, SmartSearch executives say they will give clients a high match-and-pass rate. The update, they say, streamlines single-source compliance to help buyers meet their AML requirements more efficiently.
Entersekt survey: Secure mobile authentication in Europe needed
Consumers favor financial institutions that offer modern authentication methods to secure their data and transactions, according to an Entersekt consumer survey. The survey of 5,000 respondents in the UK, Norway, Hungary and Germany found that customers prefer security over convenience. Fifty percent of the respondents expressed a willingness to switch to a different bank depending on their perception of account security.
According to the survey, after logging in and completing a transaction in their banking apps, 25 percent of the respondents reported having to authenticate the transaction by scanning their fingerprints. In comparison, 21 percent were required to enter a text one-time password. The next most common method was scanning their face, reported by 19 percent. Finally, 12 percent reported responding to a message within the banking app.
Shufti Pro, Mastercard, Veriff strengthen ID verification and KYC compliance
Amaramba Capital Dealer, a Mozambique company licensed as the first independent stockbroker by the nation’s central bank, has hired Shufti Pro to integrate KYC solutions for the identity verification of its clients.
According to Shufti, this will help its risk and compliance department analyze any potential instances of ID theft or fraud while complying with global KYC and AML regulations. Shufti Pro says its selfie biometrics and KYC technologies verify customers in real time, helping businesses tackle fraud by preventing identity theft.
MasterCard says UNIBank Skopje is a new client of the U.S. consumer credit firm’s ID Operated by Evrotrust service. This will provide businesses in North Macedona, where the service is based, with a secure digital capability for remote customer identification and e-signing, enabling customers to access banking services faster with reduced fraud risk, the companies say.
Meanwhile, Veriff has launched a KYC education center, which provides businesses with access to resources and guidance on anti-money laundering (AML) and counter-terrorist financing (CTF) compliance. The company says it features a comprehensive library of articles on identity verification and proof of address and a optimal design accessible to businesses of any size.