Is Your Privacy Consent Form
Up To Date?
Fintechs (including CFI Finance) are constantly looking for efficiencies and ways to improve speed and customer experience. One of the developments in recent years that has been adopted by many lenders is the real time checking of ID. You may have heard financiers refer to the ‘DVS’ (Document Verification Service). This service is particularly useful to lenders attempting to verify individuals as a part of their KYC processes.
The DVS is a secure, online system that allows lenders to obtain Identification from an individual, then with their consent, compare it to the original document that was issued by the relevant government agency. Examples of documents that can be verified by the DVS include passports and driver licences.
The outcome is that the identification provided by a borrower can be verified in a matter of seconds, improving the turnaround time on deals. However, (this is the bit you need to pay attention to) in order for lenders to use the DVS, they need to have received explicit consent enabling the verification of the information provided to them with the official record holder.
It is not uncommon for broker privacy consent forms to be missing this express consent and results in lenders having to issue the borrower with a copy of their own privacy consent form to be signed. This extra step can slow down the application process and remove the benefit of many of the efficiencies gained.
It is a good idea to review your privacy consent form and ensure that it complies with DVS requirements along with any other updates that may have occurred within the Privacy Act. Often it is only a minor adjustment that is required, which will make applying for finance a much smoother process for both your customer and the lender.
* CFI does not provide legal advice and this article is general in nature. Brokers should seek their own legal advice before making any changes to their documents.