In an effort to balance customer experience and reduce identity fraud, digital identity verification has proven to be at the center of it all. Businesses across various industries strive to enhance customer experience while ensuring stringent security measures.
Digital identity verification is a powerful tool that can authenticate and verify a user profile. This has allowed businesses to provide a safe and secure customer experience, without sacrificing a positive user experience.
There are many ways advanced ID verification platforms are making this possible. They’re improving speed and accuracy. For example, leveraging advanced technologies and AI-driven solutions allows, companies to streamline their onboarding processes, verify customer identities swiftly, and foster trust and reliability.
Additionally, digital identity verification empowers businesses to deliver seamless experiences, helping to bridge the gap between offline and online experiences.
What’s the best way to use these tools? How do they create a win-win scenario for both customers and organizations, that improves customer experience and security? Let’s take a closer look.
Digital Verification Is Becoming More Widely Used
A recent report by Grand View Research stated an expected 16.7% growth in the global digital identity market from 2022 to 2030. This graph includes all the ID verification methods, such as AI and automation, biometrics, machine learning, and more. Clearly, we’re using them more than ever.
The report also exhibits how online identity verification methods are used in various industries. With a market size of $8.5 billion in 2021, the BFSI (banking, financial services, insurance) industry dominates with roughly 25% of total market share.
What Problems Do Businesses Face?
Effective digital verification methods can touch every aspect of the customer experience and help to alleviate common problems that businesses are facing. These problems include:
1. Cart Abandonment
In the first quarter of 2023, the United States saw an average cart abandonment rate of 77%. Today, 86% of shoppers use computers and mobile phones to shop. Identity verification helps businesses understand user behavior. The artificial intelligence and machine learning features in these platforms allow companies to understand the buyer’s journey and provide a personalized shopping experience.
For example, J C Penney witnessed an 18% drop in cart abandonments with the help of AI.
2. Customer Acquisition
Identity verification improves the acquisition process, and leads to a smoother and more secure customer experience. Here’s how:
It streamlines the onboarding process, thus, saving time and resources Aids in the customer conversion process, acting as a liaison between acquisition and walk-ins AI and biometric customer verification help establish authentication Eradicates manual checks, thus, reducing human error while conducting the verification.3. Identity Theft and Fraud
According to a recent report, most identity fraud complaints in 2022 were due to credit card fraud and government benefits/documents.
Most identity verification methods can help to stop this and ensure a person is who they claim to be. A few of the most common methods to reduce theft and fraud include:
Two-factor authentication Biometric verification Data extraction AI-based identity verification4. Personalized Promotions
Identity verification can help target audiences with the same preferences. For example, adults between the ages of 32-45 are frequent shoppers of household items. Thus, an online ID verification tool can help map these customers, and then businesses can provide a personalized offer.
So, the big question is:
‘How does digital ID verification help with the above-mentioned problems?’
Take a look!
5 Ways Digital Identity Verification Can Improve Customer Experience
Identity verification has the potential to solve all of those problems and make businesses more efficient. Here’s an overview of the most effective ID verification solutions:
Verify Customers with Accurate Document Verification Perform Video and Live Selfie KYC Detect Risk Profiles with AI Verification Quick ID Scans with Better Results AML and Government Compliant Profile AnalysisLet’s take a closer look at each of these.
1. Verify Customers with Accurate Document Verification
Through identity verification methods, it becomes easier to verify and authenticate documents. This process ensures that individuals' identities are confirmed, enhancing customer experience and reducing the risk of fraudulent activities.
By scrutinizing official documents, such as IDs or passports, the identity verification system validates the information customers provide. This enhances security, establishes trust, and safeguards businesses against potential threats, creating a safe and reliable environment for transactions and interactions.
2. Perform Video and Live Selfie KYC
Offer customers a convenient onboarding process with video and live selfie KYC. This advanced approach enhances the overall customer experience by eliminating the need for physical visits to verify identities.
Video or live selfie verification provides convenience, saving time and effort. The streamlined KYC process fosters trust and satisfaction, and this makes it easier for customers to access services while maintaining robust security measures for businesses.
3. Detect Risk Profiles with AI Verification
Leveraging AI verification, businesses can effectively detect risk profiles with greater accuracy. Advanced algorithms analyze datasets and behavioral patterns to identify potential threats and suspicious activities.
By swiftly pinpointing high-risk individuals or transactions, companies can implement targeted security measures and mitigate risks promptly. AI-powered risk detection enhances fraud prevention, reduces financial losses, and fortifies overall security, ensuring a safer environment for businesses and their customers.
4. Quick ID Scans with Better Results
Efficient ID scans enable swift validation of customer identities, reducing waiting times and enhancing user experience. Businesses can accurately verify official documents and prevent fraudulent activities.
These efficient ID scans have been extremely useful in data-sensitive sectors, enhancing privacy and compliance. Also, age-sensitive industries, such as alcohol or gambling, can ensure legal compliance with rapid age verification.
This approach fosters trust, security, and regulatory adherence, making it a crucial asset in these industries.
5. AML and Government Compliant Profile Analysis
This robust analysis ensures adherence to anti-money laundering regulations and government requirements, safeguarding against financial crimes. Companies can provide a secure and trustworthy environment by verifying customer identities and scrutinizing transactional behavior.
Customers benefit from enhanced protection, reduced fraud risks, and smoother interactions. AML and government-compliant policies and profile analysis foster confidence, reliability, long-term customer satisfaction, and loyalty.
What Is Next?
Digital identity verification proves to be a game-changer in today’s customer-centric world. By embracing this innovative solution, businesses can offer their clientele a smooth, efficient, and secure onboarding process. Customers benefit from reduced friction during interactions, while companies gain confidence knowing they deal with legitimate individuals.