Banks, brokerages, and financial institutions that open new customer accounts must meet their own internal identity policies and worldwide Know Your Customer (KYC)/Anti-Money Laundering (AML) regulations.
At a minimum, the applicant’s identity must be verified against an unexpired government-issued ID, and the identifying numbers from that ID document must be retained by the bank, regardless of whether the account is opened.
Bank employees are continuously trained in both fraudulent document inspection and identity verification. As banks search for technology to perform these services as well, the accuracy requirements may be selective. The mDL provides the opportunity to fulfill both of these functions in a convenient mobile package that the bank can accept in person or online. Automating these functions may result in some banks selecting a high-risk level for account opening or adjusting risk sensitivity based on external factors.
Some banks have a policy of photocopying ID documents and filing them. There is inherent insecurity in allowing an ID card to be photocopied, and the mDL can mitigate the risks of paper trails and unlocked file cabinets.
Banking & Credit Union Adopted Uses
- At Teller – Existing DL/Photo-ID Required Uses Cases
- Account Opening, Check Cashing, Withdrawal, Balance Inquire, Cashier Checks
- At Manager/Sr. Staff – Investment & Financial Transactions
- Personal Loans & Line of Credit
- Retirement Portfolio Account Lifecycle
- Commercial Account Opening, Loans; Line of Credit
- Notarial Acts – Identity Verification
- In-Person mDL Verification