SmartSearch research has suggested regulated businesses are “wasting” hours processing physical documents for ID checks.
Its survey of 500 regulated firms in the UK found 30% of regulated businesses claimed it takes up to a week to process hard copy documents, with a further 21% saying it takes more than a week.
These findings form part of SmartSearch’s Electronic Verification Uncovered campaign which is calling for all regulated businesses to switch to electronic verification in order to speed up digital onboarding.
28% of regulated businesses claimed that using hard copy documents was a more reliable method for establishing ID, which SmartSearch says is concerning as fraudulent documents are also more frequently being produced. The research found that 48% of respondents had reported a rise in financial crime attempts in the past 12 months.
John Dobson (pictured), CEO of SmartSearch, said moving to electronic verification should be a priority.
He said: “The process for reviewing a physical document is incredibly inefficient. Particularly when working remotely. Requesting a photo of the document., a selfie from the client, waiting for them to send these over. Then checking the two match and reviewing the legitimacy. All this is time that could be better spent.
“Electronic verification works by using credit reference data, combined with other reliable sources, creating a unique ‘composite digital identity’ which is virtually impossible to fake. The best systems can complete a check in just two seconds.
“The Financial Conduct Authority has endorsed the use of electronic verification, and those looking to make the switch should not hesitate. Not only will businesses save time, they will also be contributing to the fight against money laundering.”
