June 4th 2020
Before and after the pandemic
— The payments industry is actively fighting against money laundering and financing of terrorism. During the Covid-19 pandemic, the external circumstances have changed, but the goal of AML is still the same -to make sure that the client is not blacklisted. We have to thoroughly check compliance with legal regulations and be confident that the merchant has the right to provide the declared services. For instance, merchants must have the appropriate license or permission, act in accordance with the requirements of VISA and MasterCard and their transactions must exclusively comply with the declared activity.
Before the pandemic, the whole world used a common procedure for opening an account in a bank or payment system. You had to visit the office with the pack of documents in your hands. It allowed the bank to identify you, check the legitimacy and authenticity of your documents, copy and notarize them. During self-isolation, it became no longer possible, so the companies are switching to online identification.
Before the introduction of social distancing, electronic identification represented approximately 40% of the total number of applications. Now it’s the only way to work with clients
Smile for the camera
Now, especially during the quarantine period, E-commerce offers a huge advantage. While all the travel is banned, the Internet is the only way to stay afloat, the only opportunity to save business. It was the technology of electronic identification that allowed us to retain all the clients during a difficult period of Covid-19 pandemic.
The future is here
In my opinion, the only correct way of electronic identification’s development in the future is the creation of a global base of human faces linked with electronic documents. China is one step ahead in it: customers there are to use
goBox smart vending machines, where face recognition verifies identity even without your smartphone, so you can show your face, open the door to select the product, and then close it to complete the purchase.
In a short while, all the necessary information will be stored in smartphones. A complete departure from paper is ahead. This is great, as it will guarantee that only the exact person can use his or her data as the access to documents and other important information will be denied without face recognition. Eliminating the possibility of bribery is another advantage of electronic identification. A few years ago it was possible in some countries to get a loan using another person’s passport copy – do you remember that? Electronic identification wouldn’t allow this to happen. In my opinion, a 90% transition to this technology will take place in the nearest 5 years.
How do you feel about this scenario? Let me know below.