When talking about the positive sides of the identity verification process, we often focus on the advantages that companies and institutions can experience. Compliance with regulations, a growing sense of security, adaptation to technological changes and increasing reputation are just some of the benefits felt by companies using the identity verification service. The process itself becomes more popular and profitable from year to year. According to statistics, global spending on identity verification by 2026 will amount to $ 16.7 billion. In 2021, the number of identity verifications performed doubled (from 45 billion to 92 billion). Taking all this into account, it is worth considering the advantages of this process for customers. What do they expect from companies? Why should companies not be afraid of losing customers when carrying out the verification process? How can identity verification improve your customer service experience?
Positive customer experiences play a key role in businesses today. The main aspect of a customer’s relationship with the company is trust. Good relationships cannot be built without a sense of security and certainty that the company has a transparent information policy and properly manages customer data. If the customer’s needs are not met in that place, or they are not satisfied with the service, they will try to find another solution. Information about further data leaks or cybersecurity gaps attacking us from all sides contributes to greater customer awareness. The 2021 Javelin Strategy and Research report found that identity fraud generated losses of $ 56 billion and affected 49 million consumers. According to a study by Experian, 45% of customers are willing to provide more personal information when registering if it is related to identity verification and security measures. Although 95% of companies declare that they can identify the customer correctly, 55% of customers disagreed with this statement.
The cited reports puts in question the relationship between the company and the customer, which should be based on trust. This value is a key element in community building, especially in e-commerce area such as marketplaces. Most of them are based on a sharing economy model and the community consists of buyers and third-party sellers. Therefore, it is up to marketplaces’ operators to build trust and prevent fraudsters from entering their platforms. Identity verification brings in advantages for customers by increasing their sense of security and level of trust, which have to be the basis of e-commerce. An identity verification service for marketplaces is the subject of our article that can be found here.
Deficiencies in security, hacker attacks, or partially completed procedures also affect the client. First of all, their data is vulnerable to leakage and can be used in frauds such as creating synthetic identities. In addition, regulations in many companies do not force the return of the stolen money, which leaves the customer alone with the problem. Inside the online world, customers want to feel safe and place their trust in the companies that care about them.
Consumers, in the research on the advantages of verification, mention convenience, speed, and accessibility. The verification process must be intuitive and easy for the customer. Often, remote identity verification is something completely new, so it is good if the system is comfortable and answers customer questions before they ask. The process must be carried out efficiently and quickly. Our opinion about verification often results from outdated banking procedures that could have extended up to several weeks. Identity verification right now is following the technological spirit and improving all the time. Verification should also be characterized by high availability – performing it only in the institutional building is no longer satisfactory for the customer. Settling matters remotely from home increases satisfaction. It is worth paying attention to the possibility of using verification on many devices, especially mobile. The customer’s expectation that they can get things done from the phone, like most of the activities they do, has already become a basic requirement for increased convenience and satisfaction.
Remote identity verification is very intuitive and allows customers to easily complete the requirements for the client. The client can verify themselves from anywhere in the world – from a tropical island on vacation to the privacy of their own home. Various factors influence the speed of the process and customer satisfaction. A stable internet connection, phone, or computer with a good quality camera (recommended mobile devices), or having all documents before starting the process will significantly speed it up and allow you to complete all steps in a few minutes. Often, after meeting all the conditions, customers themselves are shocked at how intuitive and friendly the process is. Identity verification is carried out by qualified operators. Despite being backed by artificial intelligence the customer has contact with a person who runs the case. Specialists also control the verifications made by users without the operator’s help. Consumers expect companies to be oriented to their needs, and the impressions that remain with them after the completed process allow them to break down barriers and make them become the company’s advocates later.
75% of businesses would like customer authentication methods that will not affect their customer experience. More and more regulations and their strictness mean that companies have to decide on identity verification and implement this process to not lose their customers. A good example of this is the cryptocurrency industry, which has to adapt to increasingly strict requirements and meet customer expectations in the cybersecurity field. The latest hacking attack on PolyNetwork shows how important it is to protect customers. Even though the industry is associated with high risk, it is not certain that the resources stolen by hackers will be returned to customers. The CEO of the Binance exchange also commented on the matter and asked for understanding, due to legal restrictions and no guarantee that anything could be done about it. In such cases, identity verification of customers, better cybersecurity, and the regulation of the use of crypto resources would certainly limit the scale of the attack and would not be so painful for customers. Estonia is a good example of society’s adaptation to new technologies and digitization. Remote verification processes, e-IDs, e-voting, and e-signatures are part of the daily routine. Older people also are operating well in this system, and almost 92% of the community use the Internet in Estonia regularly. The country is an example of people’s high adaptation skills and the creation of a safe space where they can quickly and easily complete requirements and verify their identity.
Another branch of business that can gain from identity verification is digital banking. Neobanks can increase their customer’s trust by implementing secure methods of onboarding new clients. One of the biggest advantages of challenger banks is their accessibility and remote identity verification is the right way to keep the highest level of security and customer satisfaction. Our article on the KYC process in digital banking focuses more on that subject.
The identity verification process is a natural response to the customer’s need to increase security. Guaranteeing a fast, intuitive, and convenient process, customer experience in handling and completing formalities only keeps getting better. Using new technologies (biometric methods such as face verification) and adapting to various operational situations does not confuse customers, but rather increases their interest and sense of security. Customers expect technological changes and do not want to stand still. Adapting to the requirements of the modern world is a natural part of the process for everyone.
Fully-Verified was created as answer to its founders collectively losing over $150 000 to various types of fraud in their eCommerce businesses.