• Victor Fredung, CEO at Shufti Pro


• 26.05.2021 07:45 am
#ID #Verification #AI

The financial institutions have seen significant changes with the onset of the CoronaVirus pandemic. To aid the online customer onboarding process, new technologies have been launched. However, only a few of them have captured the attention of financial organizations in the midst of tremendous growth in the ID authentication sector. 

One of these technologies is NFC which is revolutionizing the ID verification approaches for the financial institutions as we speak. NFC has already aided the technological society in numerous ways such as enabling swift and contactless mobile payments. Now, it is being incorporated in the field of remote identity verification to scan chip-based identification cards. So, let's take a glance at the NFC-based identity verification procedure.

NFC Technology: Availability is Key 

88% of customers say they won't return to a digital platform if they had a negative online experience.

It's critical that the technology used by financial institutions or their employed ID verification service provider is easily available to the general public. Right now, there are around 3.8 billion cell phone devices on the planet. Another statistic worth noticing is that around half of these smartphones support NFC technology. Keeping these facts in mind, it's only natural that mobile phones be used to verify the ID information of end-users.

Besides that, the ICAO 9303 standard, has established a requirement for nations to start issuing NFC-chip-based identity cards. The majority of governments have already begun issuing chip-based identification cards. When all of these aspects are considered, it is clear that digital ID verification should be carried out via NFC-enabled cellphones and ICAO 9303 compliant ID cards.

The Run-Through of NFC-Based ID Verification

In the NFC ID verification process, chip-based cards, for instance, an e-passport are used for online ID authentication. The end-user only needs a mobile device with NFC capability and a camera. Additionally, their identification card must comply with the ICAO 9303 standard meaning it should have an NFC readable chip. That is all there is to it. So, let's have a look at the NFC verification procedure from start to finish.

1. At the start, a picture of a chip-based ID card is uploaded by the end-user.

2. The system first validates the MRZ portion of the ID card.

3. The system retrieves textual information from the chip-based identity document.

4. The end-user then touches their smartphone against the identification card and the information encrypted in the identity card is easily scanned by the NFC reader.

5. Lastly, the ID document's textual data is compared to the information collected by the phone's NFC reader.

Features of Shufti Pro NFC Verification

• Its ID authentication procedure is fully contactless.

• AI-powered document verification via IOS or Android SDK integration.

• Option of adding an extra security layer with Shufti Pro face recognition service having an accuracy rate of 98.67%.

• With a digitally signed and encrypted NFC chip, replication and theft of data are practically impossible.

The Utility of NFC Verification

End-users are aware that security checks are crucial, and that their absence can lead to theft of their sensitive information. However, they are also not enthusiastic about the prospect of going through lengthy verification procedures. NFC-based ID verification, on the other hand, is a user-friendly and practical alternative. Among others, the most common benefits of employing this solution are increased conversion rates; regulatory compliance; lower abandonment ratio; contactless payment verification, and better user experience.

European Business Review reported that the digital ID authentication procedure is more likely to be abandoned by 70% of consumers due to its complexity.

In Consolidation

As the COVID-19 has limited the reach of organizations, they must adapt to new approaches that are suitable for the current environment. It is imperative if they want to provide their customers with the most robust and secure verification experience possible. Even financial institutions that use AI-based document verification and facial recognition services must integrate Shufti Pro’s NFC verification for enhanced protection from ID fraud.