Make or Buy Decision When Selecting an Identity Document Verification Solution
Introduction to Make or Buy Decision
A make or buy decision is a strategic choice organizations face when determining whether to produce goods or services internally (“make”) or to purchase them from an external supplier (“buy”). This decision can significantly impact an organization’s operational efficiency, cost structure, and competitive advantage. In the context of identity document verification solutions, this decision becomes crucial as organizations strive to balance security, cost, and efficiency in verifying identity documents, especially with the increasing use of chip-based verification solutions.
The Growing Demand for Chip Verification Solutions
The demand for chip verification solutions is on the rise, driven by the need for enhanced security and accuracy in identity verification processes. Chip-based identity documents, such as ePassport’s and smart ID cards, contain embedded microchips that store biometric data and other personal information. Verifying these chips ensures the authenticity of the document and protects against fraud.
The importance of secure, effective, and robust chip verification solutions cannot be overstated. With the rise in digital interactions and the need for secure identification, organizations must adopt advanced identity document verification technologies to prevent fraud, enhance security, ensure compliance with regulatory requirements, and improve efficiency. Reliable verification systems can detect counterfeit or tampered documents, ensuring that only genuine identity documents are accepted. Secure verification methods protect sensitive personal information from unauthorized access and misuse, while effective chip verification helps organizations comply with stringent KYC (Know Your Customer) processes. Automated and reliable verification processes also reduce the time and effort required for manual checks, speeding up the onboarding process for customers.
Make or Buy Decision in Identity Document Verification Solutions
When it comes to implementing an identity document verification solution, organizations have several options: developing the solution in-house, outsourcing the entire KYC process, or adopting a hybrid approach where they purchase individual parts of the technology.
Make (In-House Development)
Developing a solution in-house provides full control over the development process, allowing for tailored solutions to specific needs and the potential for proprietary technology advantages. However, this approach also involves high initial development costs, ongoing maintenance, and updates, and requires specialized expertise, which can result in a long time to deploy.
Buy (Outsource the Entire KYC Process)
Outsourcing the entire KYC process, on the other hand, offers quick deployment, access to advanced and proven technologies, lower upfront investment, and scalability. Yet, this approach may lead to less control over customization, dependency on the vendor, potential data privacy concerns, and ongoing subscription or licensing costs.
Hybrid Approach (Buy Individual Parts of the Technology)
A hybrid approach combines the benefits of both in-house development and outsourcing. This method allows for customization and control over critical components while leveraging the expertise and advanced technologies of multiple vendors, potentially resulting in lower costs than full outsourcing. However, it requires integration efforts, managing multiple vendors can be complex, and there may be compatibility issues between different technologies.
If you would like to find out more about what you should consider when choosing an Identity Document Verification solution, read on here.
OVD Kinegram
OVD Kinegram is a leading provider of security technologies for verifying identity documents. Organizations can choose to integrate specific components of OVD Kinegram’s technology into their verification systems, adopting a hybrid approach. For example, an organization might buy the MOBILE CHIP SDK from OVD Kinegram to ensure the authenticity of embedded microchips while developing custom software in-house to manage and analyze the verification data.
This hybrid approach allows organizations to leverage the expertise and advanced technologies of OVD Kinegram while maintaining control over their overall verification strategy and processes. It combines the best of both worlds: the reliability and security of a proven technology and the flexibility and control of in-house customization.
Advantages of Buying an Identity Document Verification Solution
When it comes to identity document verification, purchasing a ready-made solution offers numerous advantages over developing an in-house system. The key benefits of opting for a purchased solution include cost efficiency, scalability, access to expert knowledge, enhanced security, the ability to focus on core competencies, flexible data storage options, and robust compliance with regulatory standards.
1.Cost Efficiency
Cost efficiency is a significant advantage of buying an identity document verification solution. Developing an in-house system requires substantial investment in time, money, and resources. This includes hiring specialized staff, conducting extensive development and testing, and ongoing maintenance and updates. By purchasing a solution, organizations can save on these costs and deploy the system more quickly. The vendor absorbs the development and maintenance expenses, allowing the organization to benefit from an advanced verification system without the associated financial burden.
2.Scalability
Scalability is another critical benefit of a purchased solution. As a business grows, its identity verification needs will also expand. A purchased solution is designed to scale efficiently with the business, accommodating increased transaction volumes and additional verification requirements without compromising performance. This scalability ensures that the system can handle future demands, providing a seamless experience as the business evolves.
3.Expertise
Access to experts with years of experience is a considerable advantage of buying an identity document verification solution. Vendors specializing in these systems have already navigated the challenges and pitfalls associated with identity document verification. Their products are refined through extensive testing and real-world application. By leveraging their expertise, organizations can avoid common mistakes and benefit from a highly effective solution right away. This eliminates the learning curve and ensures that the organization can implement a robust verification process immediately.
4.Increased Security
Increased security in fraud detection and prevention is another compelling reason to purchase a solution. Vendors have extensive experience in secure identity document verification. Their solutions incorporate the latest security technologies and protocols, offering a higher level of protection than what might be achieved with an in-house system. This expertise significantly reduces the risk of fraud and enhances the overall security of the identity verification process.
5.Focus on Core Competency
Focusing on core competencies is essential for business success. By purchasing an identity document verification solution, organizations can concentrate on their primary business activities while leaving the verification process to experts. Vendors have made identity document verification their core competence, ensuring they offer the best possible solution. This allows the organization to allocate its resources and attention to areas where it excels, driving overall business growth and efficiency.
6.Data Storage
Data storage is a critical consideration when choosing an identity document verification solution. Purchased solutions often provide flexible options for data storage, including Software as a Service (SaaS) or on-premise solutions. SaaS solutions eliminate the need for organizations to maintain their own servers, reducing infrastructure costs and simplifying management. Additionally, vendors typically offer data storage options that comply with regional regulations, such as keeping data within the EU to adhere to GDPR requirements.
With the Identity Document Verification solution of OVD Kinegram, customers have the flexibility to process and store data on their own servers, ensuring full control and enhanced security of their information. This option supports organizations in maintaining compliance with data protection regulations and safeguarding sensitive identity information within their own IT infrastructure.
7.Data Handling
Data handling is crucial for compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. Vendors offering identity document verification solutions are well-versed in these regulations and ensure their systems comply with the latest standards. This compliance not only helps organizations meet legal requirements but also enhances customer trust and confidence in the verification process. Certifications from recognized bodies further validate the security and reliability of the solution, providing assurance that the system meets industry standards.
Why PXL Vision Chose the MOBILE CHIP SDK from OVD Kinegram
PXL Vision, a Swiss leader in digital identity verification services, selected the MOBILE CHIP SDK from OVD Kinegram to enhance their remote customer onboarding process. The decision was driven by several factors, primarily the need for a secure, reliable, and compliant solution for reading and verifying biometric data on NFC chips in e-passports. The MOBILE CHIP SDK stood out due to its ability to ensure the integrity and security of chip verification, provide a seamless user experience, and meet stringent regulatory requirements.
The integration of OVD Kinegram’s MOBILE CHIP SDK allowed PXL Vision to offer a highly secure and efficient document verification process. This solution’s flexibility and adherence to rigorous compliance standards made it a perfect fit for PXL Vision’s needs. By leveraging the expertise and advanced technology of OVD Kinegram, PXL Vision could quickly deploy a robust identity verification system without the pitfalls of in-house development.
This collaboration highlights the benefits of using an expert-developed solution, allowing PXL Vision to focus on its core competencies while ensuring top-notch identity verification for its customers. The MOBILE CHIP SDK also provided scalability, ensuring that the verification process could grow alongside PXL Vision’s expanding customer base. Additionally, the choice between SaaS and on-premise data storage options offered flexibility and control over data management, ensuring compliance with data sovereignty and GDPR requirements.
Overall, PXL Vision’s decision to buy the MOBILE CHIP SDK from OVD Kinegram exemplifies how leveraging specialized, expert solutions can enhance security, efficiency, and compliance in identity verification processes.
Advantages of Buying a Chip Verification Solution from OVD Kinegram – Conclusion and Outlook
Purchasing a chip verification solution offers several significant advantages over developing one in-house. One of the most compelling reasons is cost-effectiveness. Developing a proprietary chip verification solution requires substantial investment in research, development, testing, and ongoing maintenance. In contrast, buying a ready-made solution typically incurs lower upfront and operational costs, making it a financially prudent choice for many organizations.
Another major benefit is that purchasing a solution allows your employees to focus on your core products and services. Identity verification is a complex and specialized field. By outsourcing this function, your team can concentrate on what they do best, thereby enhancing productivity and innovation in your primary business areas. This strategic allocation of resources ensures that your organization remains competitive and agile in its main market.
Leading Organizations Choose the MOBILE CHIP SDK from OVD Kinegram
When considering specific products, the MOBILE CHIP SDK from OVD Kinegram stands out. This solution leverages extensive experience in the field of identity verification, ensuring a high level of reliability and performance. By choosing the MOBILE CHIP SDK, you gain access to a team of experts who can assist with further development and customization. This close relationship fosters continuous improvement and adaptation to evolving needs.
MOBILE CHIP SDK can be Flexibly Adapted to Your Needs
Moreover, the MOBILE CHIP SDK is designed to be adaptable, meeting the unique requirements of your organization. Whether you need to integrate it into existing systems or tailor its functionalities to specific use cases, this solution offers the flexibility you need. Additionally, it supports robust data protection measures, crucial for maintaining compliance with stringent data privacy regulations.
One of the standout features of the MOBILE CHIP SDK is its readiness for immediate use. Unlike developing a solution from scratch, which can be time-consuming and fraught with delays, the MOBILE CHIP SDK can be deployed easily and quickly, ensuring that your identity verification processes are up and running without unnecessary downtime. This rapid deployment can provide a significant competitive edge, allowing you to respond swiftly to market demands and regulatory changes.
In conclusion, purchasing a chip verification solution such as the MOBILE CHIP SDK from OVD Kinegram offers numerous advantages, including cost savings, freeing up internal resources, and benefiting from specialized expertise. This approach not only enhances operational efficiency but also ensures that your identity verification processes are secure, compliant, and adaptable to future needs. As the landscape of identity verification continues to evolve, investing in a robust, ready-made solution positions your organization for sustained success and agility.
