How to overcome identity verification challenges in a digital economy
By Michael Ramsbacker, Chief Product Officer at Trulioo
Businesses operating in the worldwide digital economy rely on identity verification as the first line of defense against online fraud and as the foundation of relationships with customers. Identity is at the heart of every digital interaction and transaction. It’s a powerful currency that must be protected. Accomplishing that goal isn’t as easy as customers might assume. Identity verification is a complex science that requires mastery in many fields.
These include data and document authentication, Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance around the world, ongoing customer due diligence, and watchlist and sanction screening. Businesses manage all these elements while adapting to ever-changing economic and regulatory environments worldwide.
The question is: How can businesses achieve that identity verification mastery and still meet customer expectations for speed and convenience?
Top four strategies for streamlined identity verification
Ensuring data is genuine, giving careful attention to the customer onboarding experience, safeguarding information, updating regulatory requirements, blocking bad actors, and avoiding businesses with economic sanctions are just a few challenges companies face. Missteps in those areas could lead to fraud, a damaged business reputation, or loss of customer trust.
Here are four strategies businesses can adopt to develop robust, efficient identity verification.
1. Avoid Multiple Point Solutions
Managing the complexities of identity verification requires technological precision that not many companies possess.
As businesses adapt to new and changing regulatory requirements and fraud vectors, many take a “tack-on” approach, adopting point solutions to respond to their immediate needs. Often, though, they’re left with a complex maze of disparate products. Those disconnected technologies, vendors and tools can create chaos for internal teams and security gaps that invite fraud or unauthorized access.
People want digital security, but they also expect speed and convenience. Companies can strike that balance by streamlining their identity verification solutions to improve accuracy, reduce friction and enhance security.
2. Accelerate verification to reduce onboarding abandonment
Consumers have a low threshold for complexity in their digital experiences. When they encounter complex onboarding, the risk of abandonment rises.
A 2022 report from Signicat found that financial institutions lose more than €5 billion euro to onboarding abandonment. The same report found an abandonment rate increase from 40 percent to 68 percent for retail banks between 2016 and 2022.
That increase, according to the report, stems from long application processes, requirements for more personal information, and a lack of fully digital options.
To avoid onboarding abandonment, businesses can:
- Automate and accelerate due diligence
- Create fast, convenient, and accurate identity verification experiences
- Provide consistent AML and KYC checks and reporting
Onboarding abandonment can be a major problem. The answer lies in finding the right identity verification capabilities.
3. Avoid reputational risk with real-time analytics and insights
Customers expect digital security, and when companies fall short, they put their reputation with customers on the line. Identity verification is a key element in maintaining customer trust and safety in every interaction.
When a company experiences a breach, negative media coverage and potential legal action can erode faith in the brand. It also can drain company resources and leave them behind the competition.
It’s impossible to eliminate all risks, but comprehensive, customized identity and business verification can help strengthen a company’s defenses. When those capabilities are paired with integrated artificial intelligence-driven insights and analysis, businesses position themselves to continuously optimize verification and, by extension, protect their reputation.
4. Leverage identity verification that ensures regulatory compliance
Regulatory compliance around the world poses a significant challenge. Companies in regulated industries, such as financial services, face the often daunting task of ensuring KYC and AML compliance in an evolving regulatory environment that varies around the world.
That task likely won’t get easier. Research from Thomson Reuters found that, among global corporate compliance officers, 78 percent said they expect reporting requirements to increase.
That only increases the need for regulated businesses to ensure their identity and business verification capabilities can meet regulatory requirements in today’s global environment. An integrated identity verification platform can give companies the agility to achieve compliance around the world today and adjust quickly as regulations evolve.
Expand confidently with streamlined identity verification
Businesses can leverage a comprehensive identity platform to successfully overcome the most notorious verification challenges and foster trust across their customer base.
When that platform provides customized, automated verification workflows, companies can confidently shift their focus to expanding their global footprint and realizing their growth potential.
About the author
Michael Ramsbacker has over 20 years of experience in the strategic execution of product strategies, particularly in the B2B technology industry. At Trulioo, Ramsbacker sets product strategy and oversees the launch of new digital identity verification solutions and services. With prior leadership experience in the identity industry, Ramsbacker drove global product strategy and roadmap development for the company’s digital identity portfolio, including biometric authentication and document verification. In this high-impact role, he rebuilt the product management organization and instituted model processes for customer risk management compliance. Prior to this, he served as Vice President of Product Management at Epsilon, overseeing the development, launch, and complete product life cycle of multiple automotive services. Previous roles also included leadership positions with Ares Inc. and Mitchell International.
DISCLAIMER: Biometric Update’s Industry Insights are submitted content. The views expressed in this post are that of the author, and don’t necessarily reflect the views of Biometric Update.
biometrics | digital economy | identity verification | onboarding | Trulioo