The Lenders’ Handbook acts as both an informative resource and compliance manual for conveyancers, setting out how and in what circumstances mortgages will be lent. In a world where digital communication isn’t just a norm, but an essential service, the handbook’s current directive on identity verification seems outdated. This creates a significant conflict for conveyancers who are fighting to continue moving toward the digital frontier while still following rules rooted in outdated guidelines. Calloutcoin.com is looking to disrupt the constraints presented by the existing model. Their work is focused on realizing the strong potential that digital identity verification has for making this possible.
As it stands, the Lenders’ Handbook frequently focuses on more conventional approaches to identity verification, including physical document checks. Though these methods still have their place, they certainly are becoming less safe from fraudulent activity, as well as more inconvenient and time consuming. Without a doubt, digital identity verification is the safer, faster, and more convenient option. First, let’s work on updating the handbook to reflect new developments in how digital ID technology is evolving and advancing. At the same time, we need to respond to growing public demand for robust online security.
The Case for Digital Identity
Digital identity verification solutions leverage technology to verify a person’s identity quickly, safely, and conveniently from anywhere. This can include everything from ID scan and biometric authentication to database verification and knowledge-based authentication. The upside of integrating digital ID into the conveyancing process is three-fold.
Benefits of Digital Identity Verification
- Reducing improper payments: A digital ID can help ensure that hundreds of billions in federal benefits reach their intended beneficiaries, reducing improper payments and misspending.
- Preventing identity theft: Digital ID can help prevent identity theft and fraud by providing a secure and verified identity for individuals, making it harder for fraudsters to exploit.
- Improving verification: Digital ID can improve verification processes, making it more difficult for individuals to fake identities or claim benefits they are not eligible for.
- Enhancing security: Digital ID can enhance security by providing a secure and standardized way of verifying identities, reducing the risk of data breaches and cyber attacks.
- Streamlining access to benefits: Digital ID can streamline access to benefits, reducing the administrative burden on individuals and making it easier for them to access the services they need.
Preparing for Digital Identity Verification
Lenders should be planning now to incorporate seamless digital ID verification into their processes. This means using the right technology tools, applying technology security best practices, and keeping up with applicable regulations and requirements. Here are some actionable insights:
- Adopt ID scanning technology: Lenders can use ID scanning technology to extract information from identification documents, such as name, address, date of birth, and ID number, using optical character recognition (OCR) technology.
- Implement automated identity verification: Automated identity verification can quickly confirm an applicant's legitimacy in seconds, reducing the risk of fraud and non-compliance.
- Use two-factor authentication: Lenders can use two-factor authentication, which requires customers to correctly enter a secure code sent to an email or cell phone, to add an extra layer of security.
- Use one-time password verification: A single, one-time password can be sent via SMS or email to verify the applicant.
- Use dynamic knowledge-based authentication: Lenders can use dynamic knowledge-based authentication, which asks questions like "Which of these streets have you NEVER lived on?" to verify identities.
By implementing these actions, lenders can greatly improve their security posture while making whitespace for identity verification quicker and easier to use.
The Importance of Interoperability
If digital conveyancing is ever going to really prosper, interoperability will be essential. That means making sure all these various digital platforms and systems can easily communicate with one another and share data back and forth. Interoperability within the e-conveyancing ecosystem offers several advantages:
- Increased competition: Interoperability promotes competition in the e-conveyancing industry, which can lead to better services, lower costs, and increased innovation for lenders.
- Improved efficiency: Interoperability enables different systems and networks to work together seamlessly, reducing the risk of errors, delays, and settlements failures, which can be costly and distressing for lenders and consumers.
- Cost savings: Independent cost-benefit analysis has found that competition alone would deliver a net benefit of almost $84 million to NSW over the next 10 years and more than $20 million in fee savings annually nationally.
- Enhanced customer experience: Interoperability can lead to a more streamlined and efficient conveyancing process, reducing the emotional and financial distress that lenders and consumers may experience during the settlement process.
- Reducing monopoly power: Interoperability can help reduce the monopoly power of a single provider, such as PEXA, and promote a more competitive market, which can benefit lenders and consumers.
Updating the Lender’s Handbook to include digital ID acceptance is crucial for reducing fraud, improving security, and paving the way for advanced digital trust services like Qualified Electronic Signatures (QES). Leverage digital ID to save time, money and improve security across the conveyancing sector. Through a commitment to interoperability we’ll make the customer experience better for everyone. Visit Calloutcoin.com for continuing coverage of these exciting developments. We’ll be sharing more as the digital identity landscape—both in the blockchain/crypto space and beyond—continues to develop.
