Identity verification works through the creation and management of core digital identities, which are ranked during processing and receive a "score". Digital identities can be useful for proving customer identity, but they can also have limitations. To determine this, the digital identity can be given a level of assurance (LOA), as a result of the scoring process, which can help define services. For example, core digital identities with an LOA I can be understood as "approved". This means that all vital identity attributes have been approved by the authentication assessment algorithms. LOA II means that there is a "moderate risk" for the user's login attempt, which warns about a failed authentication, possibly due to human error. One step further, a LOA III confirms a "major risk", which signals that the system should request further procedures to authorise the identity at authentication. The highest warning sign is an LOA IV, which indicates a "major risk" that escalates the identity verification process and requires in-person authentication.
This range of services depends on the identity verification provider. Typically, however, where sensitive information elements are temporarily required to access financial services, a due diligence operator will undertake the assessment and provide access.
More technical info available on this link.