Proving identity, protecting trust: Why digital verification is becoming essential for today’s advisers

Continuing professional development (CPD) is more than anything about keeping pace with change. For advisers, one area evolving quickly is identity verification.

Driven by shifts in how people buy and interact online - and what regulators expect - ID verification (IDV) is no longer a niche technicality. It’s becoming a central part of building trust, preventing fraud, and ensuring every client interaction stands up to scrutiny.
 
Distance-based advice: Convenience with caution

The rise of remote advice brings clear benefits - speed, flexibility, and convenience for clients. But it also presents new risks. Without in-person meetings, it’s harder to confirm who someone is, or spot red flags that might come up when sitting face-to-face.

As the Financial Conduct Authority (FCA) puts it, advisers must ensure they have “reasonable belief” in a client’s identity. That doesn’t change just because the process happens online. Verifying identity securely, digitally, and in line with regulation is now a must-have - not a nice-to-have - for firms offering distance-based advice.
 
What is IDV - and why does it matter?

Identity verification is the process of confirming that a person is who they claim to be. For mortgage and financial advisers, IDV plays a critical role in:

● Complying with AML regulations,
● Reducing the risk of fraud or impersonation,
● Creating a clear audit trail for compliance,
● Building confidence - for both firm and client.

As guidance from GOV.UK and Companies House makes clear, firms are expected to meet high standards. That includes verifying identity through biometric checks (like liveness and selfie verification), secure document scanning, and screening against known fraud and sanctions lists.
 
Tech in practice: IDV and SmartSearch integration

Advisers using SmartSearch will already be familiar with its AML tools, which run checks against watchlists using data from partners like Experian and Equifax. But what’s new - and coming soon to platforms like Twenty7Tec - is the next step: integrated identity verification.

This means advisers can complete full checks without switching systems. ID documents are scanned, liveness tests completed, and results passed directly into the adviser’s CRM. It confirms identity, flags risk, and records the whole process - all in one go.

It’s the kind of behind-the-scenes process that ensures compliance doesn’t slow down advice. For the adviser, it’s fast, simple, and secure. For the client, it’s a seamless way to get started.
 
A practical example: Digital-first advice, delivered securely

Imagine an adviser onboarding a client who lives in another part of the country. There’s no chance to meet in person. But the adviser still needs to complete full AML and ID checks.

With integrated IDV, the client uploads their passport, completes a selfie check on their phone, and submits everything securely. The adviser receives confirmation, documentation is stored in the CRM, and the advice process can begin.

There’s no delay, no awkward back-and-forth, and no compliance corners cut.
 
Striking the balance: Compliance that doesn’t jar

Clients don’t want to feel like they’re being interrogated. But they do want reassurance that their data is safe, and their adviser is acting responsibly. The key is embedding IDV as a seamless part of onboarding - not an awkward bolt-on.

Done well, digital verification reinforces trust, rather than eroding it. It helps protect clients from identity theft, and helps advisers demonstrate professionalism and care.
 
Looking forward: What’s next for IDV?

Digital identity checks are evolving fast. From AI-powered document analysis to near-instant verification services, tech is making compliance simpler and more accurate. Expect to see:

● Greater use of automation to flag inconsistencies,
● AI-enhanced liveness checks,
● More providers offering fully integrated solutions,
● Increased regulatory pressure for clear audit trails.

Advisers who understand how these tools work - and how to use them well - will be better equipped to offer fast, secure and compliant service as expectations grow.
 
Conclusion: Stay informed, stay protected

Client trust is built on clarity, consistency, and care. Identity verification might feel like a background process - but it plays a crucial role in all three.

As the advice world continues to shift towards remote and digital-first journeys, IDV must be part of every adviser’s toolkit. And as with all areas of compliance, staying informed is the best way to stay protected.