As businesses strive to comply with stringent regulatory requirements and safeguard against fraud, the need for innovative solutions like phone number verification becomes paramount. This method offers a low-friction, highly accessible way to authenticate identities, which is especially crucial in a country where the unbanked population still constitutes a significant percentage.
With mobile penetration surpassing an impressive 90% in Tanzania as of 2023, according to the Tanzania Communications Regulatory Authority, leveraging phone number verification for KYC onboarding is not just a convenience but a necessity.
What is Phone Number Verification?
Phone number verification is a crucial process that confirms the validity and ownership of a phone number. It involves checking whether the phone number is active and correctly associated with the individual claiming it. This method is particularly effective in regions with high mobile usage but low digital inclusion such as Tanzania, where it helps businesses verify users' identity for quick onboarding to minimise fraud, enhance security, and comply with regulatory requirements.
Benefits of Phone Number Verification
Some of the benefits of phone number verification solution include:
a. Strengthened Security
Phone number verification significantly reduces the risk of fraud and identity theft by ensuring only legitimate customers are onboarded. This added layer of security protects both the business and its customers.
b. Enhanced Customer Experience
Leveraging mobile technology for verification creates a seamless and efficient process, allowing customers to verify their identities quickly without extensive documentation. This improves the overall customer experience by making the onboarding process faster and more convenient.
c. Regulatory Compliance
Phone number verification helps businesses comply with stringent KYC regulations, ensuring that customer identities are accurately verified. This compliance is crucial for avoiding legal issues and maintaining a good reputation in the market.
d. Financial Inclusion
For the unbanked population, phone number verification provides a straightforward way to verify identities and access financial services. This inclusivity is essential for fostering economic growth and financial stability in Tanzania.
Importance of Phone Number Verification for KYC Onboarding in Tanzania
Phone number verification plays a vital role in KYC onboarding in Tanzania for several reasons:
- Regulatory Adherence: Ensuring compliance with local and international regulations is critical for avoiding legal penalties and maintaining a reputable business standing.
- Fraud Mitigation: By verifying phone numbers, businesses can significantly reduce the risk of identity theft and fraudulent activities.
- Customer Accessibility: Utilizing phone numbers for verification makes the process more accessible, particularly for individuals who may not have traditional identification documents.
- Inclusive Financial Services: Phone number verification opens doors for the unbanked population to access financial services, promoting greater financial inclusion.
How to Perform Phone Number Verification in Tanzania
Follow the steps below to verify a phone number using Smile ID’s solution:
Step 1: Collect User Details
Collect the customer's phone number and optional fields such as name, gender, and personal identity number through your onboarding form.
Step 2: Submit Information via API
Submit information to our Identity Verification API to query the government database using only the phone number.
Step 3: Get Real-time Results
Results will return a value of no match, partial match, or exact match, along with detailed data from specific fields that match.
Book a free demo today to learn more.
If a phone number is not listed or entered incorrectly, the system will return a "record not found" result. Furthermore, the service can identify if the entered phone number is invalid for the selected country, allowing for immediate adjustments and ensuring the accuracy of the information.
Verifying User's Phone Number for KYC Onboarding with Smile ID
Smile ID's Phone Number Verification solution is designed to be a comprehensive, low-friction service that facilitates KYC onboarding in Tanzania. Covering over 67 million phone number records across Tanzania, this service ensures accurate and efficient verification.
Key Features
- ID Number Matching: Ensures that the provided ID number matches the one associated with the phone number.
- Name Matching: Verifies that the first and last names match those linked to the phone number.
- Real-Time Verification: Provides instant results, allowing businesses to quickly proceed with the onboarding process.
- Error Detection: Identifies invalid phone numbers and provides feedback for corrections.
Bottom Line
Phone number verification is a needed solution for KYC onboarding in Tanzania, offering a secure, efficient, and inclusive method for verifying customer identities. Given the high mobile penetration and the need for stringent KYC compliance, this verification method is invaluable for businesses.
Smile ID's Phone Number Verification product provides a robust and reliable service that enhances security, improves customer experience, and ensures regulatory compliance. By adopting this technology, businesses in Tanzania can streamline their onboarding processes and contribute to greater financial inclusion.
Book a free demo today to learn more.
