Digital ID Verification – Why is it Critical for Customer Experience?
Last year was all about lockdown and pandemic disrupting business operations to the very core. This brought about several inconveniences for enterprises to acquire customers. Ultimately, companies with traditional customer onboarding systems had to bear a lot of financial loss. Customers nowadays demand instant services, be it the customer support division that has to speed up the response rate or the sales department that must employ solutions to onboard customers. With constantly evolving technology, there are a million ways that are helping businesses in getting the right customers onboard. One of the strongest solutions is digital identity verification. Being a regulatory requirement, firms cannot skip the ID verification stage but they can speed up the process through digitisation.
There are several points that make digital identity verification critical for customer experience. Let’s start discussing the topic in detail, shall we?
What is Digital Identity Verification?
Digital identity verification is a mechanism that allows companies to steer clear of fraudsters. With the rate of identity fraud increasing rapidly, enterprises need a solution that can help them identify fraudsters in time and onboard legitimate customers only. Digital ID verification is so far the best way of achieving the goal.
Vitality of Digital ID Verification and Customer Experience
Here are the top three reasons that make digital identity verification critical for customer experience.
Compliance is Important, Isn’t It?
Businesses have several regulations to comply with and non-compliance results in hefty penalties. The record-breaking fines of 2020 have encouraged regulatory authorities to impose more rigid laws and so, compliance is a challenge for companies these days.
Have you ever wondered about the impact of KYC compliance on customer experience? As weird as it sounds, being a KYC/AML compliant business can improve your brand image. Customers will trust you which can help you get a competitive edge.
Remote Onboarding = Enhanced Customer Experience
According to Microsoft, 96% of consumers consider the onboarding process for brand choice and loyalty. So, enhancing the customer experience depends upon your firm’s onboarding process. Is it easy to understand? Can your customers effortlessly pass the verification stage? You must have the answers to all the questions beforehand.
Since it is all about remote working now, remote onboarding can be of great use for enhancing your customers’ experience. Digital identity verification can help you onboard legitimate customers within seconds. The real-time authentication system can significantly enhance customer experience.
Lower Abandonment Rate
Poor customer service and onboarding programs result in a high abandonment rate. Approximately 50% of the customers will switch to your competitors if you have a comprehensive process for onboarding customers. Moreover, acquiring customers is five times more complicated than retaining customers. Why would you increase challenges with a time-consuming onboarding stage?
Your customers will only wait for less than a minute and if you fail to onboard them in the meantime, you have a higher abandonment rate. So, what can you do? The simple answer is a digital onboarding process that welcomes new customers within a few seconds.
How to Enhance Your Customers’ Experience through Digital ID Verification
The digitally equipped customers demand instant solutions from you and without a frictionless onboarding process, this seems like a vague aim. We are offering some ways that can help you provide the end-users with a fantastic onboarding experience along with verifying identities and complying with the KYC and AML regulations. Here are three of them:
Biometric identity verification is the first method to enhance your customers’ experience. With liveness detection checks, all your customers have to do is nod their head a little and ensure remote presence.
Did you know that identity fraud doubled in 2020 as compared to 2019? Liveness detection is one of the best ways to combat spoof attacks. It greatly helps businesses to answer the question “Is it a real person?” Video playbacks, face masks and replay attacks are no longer successful if businesses employ liveness detection.
Apart from fraud prevention, it is capable of reducing the ID verification time to a few seconds making the entire process seamless. All in all, improving customer experience is no longer a problem.
Mobile ID Verification
Bearing in mind that more than half of the world population is using smartphones, mobile identity verification is another way of improving your customers’ experience. Also known as NFC verification, identity validation has become an effortless procedure. NFC-based identity verification has some simple steps to make customer acquisition easier for businesses.
- First, the end-user uploads an NFC-enabled ID document
- The end-users taps the phone on the document
- Data from the document’s chip is cross-matched against the printed information
- Verification is complete and results are delivered
Video KYC became trending in 2020 when the pandemic emerged. It is a remote identity validation system in which the KYC expert gets in touch with the customer on a live video call. In a minute or so, the identity is verified and the results are shared. You can decide whether to onboard the consumer or not, whereas your customers stay happy because the process was hassle-free.
In a Nutshell…
In wake of the pandemic, digital onboarding solutions have become the need of the hour. As of today, the majority of the corporate world is dependent on remote customer onboarding and digital means of acquiring consumers. But what about the identity verification phase of consumer acquisition? Thanks to advanced technology, digital identity verification has made it simpler for firms to onboard legitimate customers in real-time. Moreover, businesses can employ video KYC for a state of the art identity verification system. All in all, digital identity verification is critical for improving customer experience.
To learn more about digital customer onboarding solutions, you can talk to our experts.