The Importance of Identity Verification In Real Estate World
One of the most common problems in real estate is the identity fraud. Even financial institutions are having pressure to adhere to the mandates regarding the prevention of 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 following the proper process of identity verification, any real estate and business can benefit when it comes to customer service and employee productivity.
Identity verification is the process of using the personal attributes of the individuals to validate who the individual is.
When it is about forming new relationship, identity verification in real estate is very important. In identity verification, facts are gathered from different sources through proper screening and analyzing the data so that it will determine if a new relationship should begin. This will allow the agent to fully know the customers. With identity verification, the success or the failure of the real estate business can be determined.
The increase number of people who acquire property or house made the role of financial institution valued. The customers doing business in any institution should understand that increased in security will help the customers and the public. 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 lead to lost of confidence in the institution as well as lost of customers, sales, and profit. Recovering may not be easy, and it will be a costly process. When the mandate is not complied, penalty may be imposed.
Customers are protected because any business or institution should prevent identity fraud. The first step to prevent identity fraud is through identity verification. This will stop the bad people from opening an account and reduce the burden of the bank. If the identity verification is part of the defensive measures, knowing your customers can greatly help in lessening the risk. Thus, identity fraud can be eliminated.
The law will review the policies of the financial institution so that there will be an analysis of the risk. The frontline workers should do the research about the information of their customers from various sources as soon as possible.
Lastly, this will improve 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. It will protect both the customers and the institution.