What Has Trusted Vouching Got To Do With Source of Funds?

What is trusted vouching, how does it work, and when would you need to offer it for Source of Funds or Source of Wealth?

What is Trusted Vouching?

One-size-fits-all identity systems are not fit for purpose for consumer-facing services. Many of these services require Source of Funds checks that include KYC and EDD.  Trusted Vouching offers organizations requiring SOF a way to extend their demographic coverage by using it as an alternative pathway for those who cannot be easily verified.

When to use trusted Vouching during Source of Funds

Citizens who don’t have a digital footprint, prefer not to interact online, or lack a smartphone or internet access, can have their identity verified using Vouching. Vouching offers these people an alternative way to prove their identity and to interact safely with services that require KYC checks.

Vouching is a valuable addition to an online identity service, as it broadens the service to include those who are not easily verified online.

Reputation and Vouching

Reputation is an intrinsic aspect of human society; human behavior has evolved to encourage group interactions that benefit the entire group. For example, cooperation depends on behaviors such as reputation, moral expectations, social pressures, kinship, and strategic positioning. Through these mechanisms, individuals recognize each other and act accordingly. Similarly, Trusted Vouching uses reputation as a mechanism to assure that someone is who they say they are. As such, the Voucher must have a high enough reputation to underpin the system. Law firms and banks are ideal candidates. However, any entity could potentially be co-opted into the system if it can offer evidence of a good reputation.

How this reputation is established is just one part of a more complex system of Trusted Vouching. ‘Orchestration and Decisioning’ is an essential part of this system. It provides the connectivity to pull all the system’s moving parts together: the Voucher must be verified; individuals or organizations who act as a Trusted Voucher must themselves go through an identity or business verification process before being established to provide Trusted Vouching services. This verification chain must then be expressed in a service accessible by the consumer requiring a Source of Funds or Source of Wealth check.

Reputation as a vouching entity sits in an apex position; once established, this entity then has the right to vouch.

Vouching  as a channel for Source of Funds and KYC

Reputational evidence to establish the right to vouch is one side of the vouching equation. The other side is vouching for the vouchee, i.e., the party requiring the SOF checks. Once a Trusted Voucher is established, it will be co-opted into the broader digital Source of Funds service. The Trusted Voucher will have access to a Voucher portal. The portal acts like an automated pipeline to process a Source of Funds request; at each step, the Voucher will be requested to supply the relevant documentation or data to establish the SOF or SOW for the individual in question.

This video of the Source of Funds vouching process shows the process from the request made to the voucher, providing a Trusted Vouch.

Trusted Vouching for Source of Funds video.

Vouching is truly a multi-level system that requires deep design thinking before development begins. However, using the right technology makes Trusted Vouching for Source of Funds achievable. Identity Orchestration and Decisioning provides the framework to utilize the protocols, verification services, and channels to ensure that secure vouching works for all.

Avoco is working with respected third parties to deliver vouching.

Talk to Avoco about how your organization can benefit from Trusted Vouching for Source of Funds.