Socure updates KYC solution, improves onboarding rates for Gen Z customers
Digital identity verification platform provider Socure has claimed it can verify the identities of over 70% of 18-year-olds opening their first accounts with its new KYC solution.
Socure claims that this success rate surpasses “any other provider in the market by at least 30%.”
Generation Z, those currently aged between 8 and 23, have traditionally been some of the hardest to verify for the purposes of KYC, this can be for reasons such as their lack of traditional credit history or housing history.
The firm claims its digital onboarding rates rise to 93% for slightly older Gen Z users, between 18-25 years old.
Socure claims to achieve these improved onboarding rates via its use of “alternative data sources and entity resolution”. Alternative data can mean using data from non-traditional sources such as social media for tasks such as KYC or credit checks.
The news comes as verifying the identity of young people online remains a pertinent issue globally.
For example in the UK tech bosses may soon face jail time if they fail to be able to accurately assess the age of younger visitors, allowing them to view unsuitable content in the process.
We’re seeing similar legislation on the horizon in the US as well. In April, a draft federal bill was unveiled, which imposed a minimum age of 13 on users of social media such as Twitter, Facebook, TikTok and Instagram.
Similar legislation already exists in certain U.S states, for example in Utah, those below the age of 18 require parental consent to use certain social media platforms, while similar legislation proposed in France would regulate those under 15.
“Based on feedback from almost all of our customers, we know that attracting Gen Z consumers in particular are key to the longevity and growth of their businesses. Yet ironically, they are the hardest to identify and will abandon an app the moment friction is applied, which is traditionally used to deter fraud,” said Johnny Ayers, founder and CEO of Socure. “The new accuracy and coverage we are achieving with our KYC solution, is not only industry-leading by a long-shot, but is allowing organizations in all industries to unlock new sources of revenue by adding more young consumers safely into the digital economy.”