Virtual verification of identity (VOI) for online mortgage applications became a reality with the launch of e4’s new VOI app for mortgage providers and consumers.
HashChing, an Australian online marketplace for home loans, has been beta testing e4’s VOI and claims that it significantly reduces the “fall over” when an online customer must break out of digital and physically go to a bank or post office to verify their identity.
The company says the digital verification of identity system significantly reduces the costs of establishing identity and can lead to increased conversion rates for mortgage brokers.
Founded in 2000, the South African-based e4 is well known as a supplier to banking and finance of property transfers, debt recovery, document automation and regulatory compliance solutions. More than 2500 law firms use it for legal and conveyancing matters. It has offices in seven locations, employs more than 400 staff and has 20,000+ global users.
{loadposition ray}
Stuart Hosford, managing director of e4 Australia, said, “We developed this for two reasons. First, to make it as easy as possible for consumers to do a 100% online application, and secondly, for mortgage providers to have the proof of identity needed to satisfy Australian Money Laundering (AML) and counter-terrorism financing (CTF) (legislation). By all reports, we have exceeded those requirements.”
Hosford led e4’s financial services practice in South Africa and has come to Australia to launch its business here.
“We are all, at one time, consumers of financial products and the highest pain point for modern consumers is having to leave the digital process, gather up your 100 points of identity proof and head off to the bank or post office.
"Our solution uses mobile or Web apps to capture your image and photos of relevant documents and compare it to validation sources like the Attorney General’s document verification service (driver's licence and passport), domestic/international watch lists, credit bureaus and Foreign National Identity services and wrap all that up in a VOI report,” he said.
The service is delivered from the Microsoft Azure Cloud as an API and can be integrated into existing CRM or other solutions or use the interface provided. It costs approximately 30% of what comparable identity systems, that require a physical presentation of proof, cost.
Once a customer is verified, the app produces a report containing audio and video recordings for governance.
“We offer a very practical opportunity for businesses to improve their customer onboarding experience at reduced risk and cost. This is a unique proposition given that customer convenience and regulatory compliance are most often not complementary in their objectives. What is currently a convoluted and lengthy process will become a seamless digital experience that can be completed in five minutes or less from anywhere with an Internet connection,” adds Hosford.
Hosford says VOI can be used for so many more applications and e4 will explore these as demand warrants. It could be used in the sharing economy for verification of the user, for other banking/finance services, electronic conveyancing and many more where one needs to easily prove one's identity.