Thanks to the Covid-19 pandemic, identity verification is no longer just a security protocol, but a linchpin for profile vetting. Without identity verification, digital onboarding processes cease to exist. This is why modern businesses are investing and exploring various ways to incorporate identity verification.
And what’s more? Identity verification accelerates and streamlines your KYC compliance and CIP procedures and eliminates manual intervention to a huge extent, making way for hassle-free business processes and informed business decisions.
While identity verification is a fairly established concept for businesses in the BFSI industries, emerging industries like the gig economy, cryptocurrency, e-commerce, and more are still finding their way around it, enabling them to digitize their onboarding operations.
Due to the inherent nature of digitized operations, identity verification quickly gels with your activities, giving you the bandwidth to scale up as much as you need.
The following will discuss in detail the role of identity verification in the gig economy and how this identity-first approach is changing the gig economy for the better.
Streamlining Vendor Onboarding Operations
Businesses in the gig economy deal with vendors all the time. However, paying attention to the vendor onboarding process alone can make all the difference.
When you verify the vendor and validate their tax and social security details, you are able to assess the risk, giving you the confidence to establish and conduct a compliant business relationship with all your vendors.
You are validating the identities of a vendor across a variety of authorized data lists, which help you check the real-time legal status of your vendor, allowing you to make informed, fact-based decisions for your business.
Establishing KYC Compliance
KYC compliance applies to vendor onboarding processes as well since businesses are hiring remote resources for temporary or term projects. This makes way for validating the vendor profiles to check if the profiles are as credible and reliable as they claim to be.
With TIN Matching, Sanction checks, OFAC watch list checks, and ATF (Anti-Terrorism Financing) checks; you can easily assess the risk and conclude the viability of a vendor for your business arrangement.
Improving Approval Rates
Identity verification not only allows you to check the vendor from a business perspective, but from civil, financial, and tax compliance perspectives, which collectively help you assess the risk of a profile. While TIN Matching is a necessary check, sanction checks, OFAC checks, and other federal checks from identity verification solutions like TIN Verify will help you avoid non-compliant profiles.
Further, identity verification will reduce the hassle of onboarding tax-evading freelancers or vendors that do not want to disclose their tax information, giving you the power to retain quality profiles and maintain regulatory and tax compliance at all times.
Accelerating Tax Compliance
Assessing the real-time tax compliance status of your vendor through a TIN Lookup process will help you check if the vendor is in good standing with the IRS. Further, a simple TIN match will enable you to validate the tax details of the vendor per the official records of the IRS accurately, giving you the sense of clarity your processes long for.
Due diligence will also help you check if the vendor is repeatedly hit with tax evasion citations or penalty assessments, allowing you to evaluate your business arrangements.
The bottom line is that risk is everywhere and it is especially the highest in the gig economy wherein the ecosystem is still in its infancy and needs a collective streamlined approach for sustainability and consistency. Identity verification will enable businesses in the gig economy to avoid non-compliant practices with its simplistic adaptation.
