Digital identity verification is the process to validate the identity of a person electronically. There are a plethora of benefits associated with digital identity verification. The future of this technology would be in creating verified identities that are not only accurate but also secure.
The number of verification and authentication methods is increasing exponentially due to the benefits it provides. The increased demand for digital identity verification has created a plethora of avenues that can provide verified identities both online and offline. The primary purpose of digital identity verification is to prevent users from creating multiple accounts for different purposes such as insurance, loans, etc.One person should be able to have a single verified identity that can be used in order to avail benefits from different places instead of creating multiple identities.one of the best examples are Cox Communications which uses same technology for their Cox customer support services.
Many companies, both small and large are making use of digital identification verification in their business models due to the increase in the benefits that it provides. There are several additional advantages apart from why organizations make use of digital identification verification, which include:
- Digital identification verification helps in reducing costs.
- It is highly efficient and secure.
- Easy to use, less time-consuming, and hassle-free process for users.
As per the record of World Economic Forum stated in its report that by 2020 about $1 Trillion would be saved by the revolution in the Identity Verification project. In addition to it, World Economic Forum also predicts that total investment through blockchain technology would be about $1 Trillion by 2025 which is a huge amount for relatively new technology. And also identified several applications in order to support this prediction including digital identity verification, data management, and user experience, etc.You may also like this how Big is Tamriel?
World Bank also predicts that from 2017 to 2020 around 860 million people would be able to escape from extreme poverty through financial services and digital identity verification. In addition, it has been recognized as a key enabler for inclusive finance by the World Bank Group. Apart from this, micro-insurance penetration is going to be increased with digital identity verification projects. In a nutshell, it can be said that digital identity verification provides a number of benefits which is why it is being widely adopted by various organizations.
Benefits of Digital Identity Verification
Digital identity verification (DIR) has many benefits. They include the following:
- The ability for a user to securely provide their personal information through an identity verification service to any other entity, such as a bank, utility company, telecommunications provider, employer, etc.,
- Consumers can receive better offers and promotions from entities based on their preferences and interests, which is possible because of the digital footprint left by these interactions
- Digital identity verification service providers can establish trust with all consumers
- These services are cost-effective
- With the increasing incidence of cybercrimes, these services have helped in tackling crime.
Identifying your customer’s needs and providing personalized service is the key to success in any business. With digital identity verification, that process becomes even easier because you can gather information about their interests without ever meeting them face-to-face or speaking on the phone. This type of technology has numerous benefits including reduced costs, increased efficiency, ease of use for customers, and more. It may not be a new concept but with all these advantages it will certainly become a primary focus in years to come.