The opinions expressed here are those of the authors. They do not necessarily reflect the views or positions of UK Finance or its members.

While matching a name to an address has traditionally been and remains an integral part of the ID verification process when onboarding new customers, it’s clear that mobile ID verification - matching a name to a mobile number - is something that needs to be embraced. Particularly as the proliferation of smartphones continues with an estimated 6.1 billion people expected to have access to such a device by 2029, while four billion people worldwide have a recognised postal address.

The value of mobile ID verification in the identity verification process is enormous, because unlike traditional methods that depend on semi-static data, mobile verification utilises real-time data from mobile network operators (MNOs) to authenticate an individual's identity with a high degree of accuracy.

SIM registration requires individuals to register their name, address, date of birth and, in some cases, a government-issued document or national ID. As a result, mobile numbers are increasingly becoming primary identifiers and digital identities. In regions like the EU, India, and parts of Asia, a valid mobile number is not only required for basic communications but also for critical activities such as opening a bank account, registering for online services, or renting property. 

It’s possible to source easy to integrate API software that can match the name and mobile number provided to the name and number on the SIM, for additional reassurance. This is particularly important if an existing customer is looking to change their mobile number, to help prevent SIM swap.

Additionally, mobile ID verification can be more cost effective compared to identity verification performed against regulated data sources, such as credit bureaus and government bodies.

All this means that mobile ID verification provides a reliable and efficient way to authenticate users, prevent fraud, and comply with regulatory requirements. 

Cross reference a range of customer contact data

Remember that mobile ID verification is one piece of the identity verification jigsaw. With fraud on the increase it’s always best practice for KYC and AML to additionally cross reference a name with a physical address, landline telephone or email, where possible, to make sure that the prospective customer is who they say they are. A good option is to source an electronic ID verification (eIDV) service with access to a global dataset of billions of records containing data from trusted country specific reference sources, such as credit agencies, government agencies, utility companies, as well as mobile network operators. 

Monitor IP address 

As part of the identity verification process don’t forget the importance of the IP address. It’s possible to check if the IP address of a person looking to take out a loan or open a bank account matches or is near the verified physical address they have provided. For example, if someone is attempting to take out a loan in a different country from their registered address undertaking an additional verification procedure would be wise prior it being approved.

As the proliferation of smartphones increases mobile ID verification is set to play an increasingly vital role in the ID verification process for those financial institutions looking to grow into new markets. However, for best practice identity verification and to help prevent fraud financial institutions should, along with mobile phone number data, cross reference other sources of contact data to make sure the person is who they claim to be.