Identity Verification And Its Importance To The Real Estate World
In the field of real estate, identity fraud is one common problem. The financial institutions are also having pressure with regards to following the mandates about how to prevent identity fraud and money laundering. They must follow without compromising the quality of their customer service as well as reaching the objectives of the business. However, the mandates can also provide opportunities to save and increase money. By adhering to the proper process of identity verification, any real estate or business will enjoy the advantages when it regards to customer service and productivity of the employee.
Identity verification is the process of using claimed of an individual to confirm who the individual is.
When it is about forming new relationship, identity verification in real estate is very important. The true identity verification is finding out the reality of the possible customers through screening the data in different sources and analyzing the information gathered to know if the relationship should be started. In this way, the agent will be able to know the customers. Identity verification can determine the success or failure of the real estate business.
The role of the financial institution when acquiring a house or any kind of property should not be undervalued especially that its number is increasing. The customers must understand that there should be an increase in security when doing business in any institution because it will benefit the public as well. There is a danger for banks when it comes to monetary loss. There is also a risk for damage to the financial institutions’ reputation due to the opening of accounts by the terrorist. This can bring lots of losses in confidence, sales, customers, and profit to the institution. Recovering may not be easy, and it will be a costly process. Non compliance to the mandate may impose penalty.
Any business or institution should prevent identity fraud in order for them to provide quality customer service by protecting the identity of the customers. The first step to this is through identity verification in order to reduce the opportunity for fraud. This will stop the bad people from opening an account and reduce the burden of the bank. When identity verification becomes a part of the defensive measure, knowing your customers can greatly help in reducing the risk. This will will prevent identity fraud.
The law will review the policies of the financial institution so that there will be an analysis of the risk. The frontline workers must research about the needed information quickly about their customers from multiple sources.
Lastly, this will benefit and enhance the customer service. It is the duty of the financial institution should protect the identity of the customers by using the identity verification. This will create positive experience. This will provide protection to the customers and financial institution.