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Identity verification: Balancing security and customer conversions during onboarding

For many industries, from financial services and telco’s to various age-restricted products and services, identity verification is a legal obligation. For others, as with the sharing economy and e-retailers, it’s simply a good idea in order to protect their business and customers from ever increasing levels of identity fraud. In both cases, marketeers face the same challenges to attract new customers and rightly obsess over their onboarding and registration process with the goal of maximizing conversions. In today’s world of insta-everything, these processes need to be fast and friction free, and are the crucial first contact between customer and service provider.

Security checks therefore seem to fly in the face of customer onboarding common sense, and certainly not something for fickle, impatient, online shoppers. It’s no surprise then that many online business owners hesitate before implementing identity verification measures. However, with identity fraud at all-time highs, now is not the time to cut security. Onboarding processes which focus solely on conversions at the expense of security expose the business to malicious online fraudsters. The delicate balancing act between security and conversions is a valid concern, but with a few smart integration strategies and new tech solutions, identity verification doesn’t need to be a conversion killer.

Timing in life is everything

We all know the importance of making a good first impression, the same is true of any brand or business. Asking for proof of identity in step one, before convincing customers of the value you deliver, could result in a false start. Instead, use all your marketing savvy to create that perfect introduction; engage, excite, convince. Once they are legitimately engaged with your product or service and wish to transact or interact with your platform, or have even gone as far as payment, ask them to verify their identity.

Rewards & incentives

Everyone likes free stuff. Using a small incentive to get them over a slight bump in an otherwise smooth onboarding process can be an easy win. A small jump in conversions can deliver huge financial returns over a customer’s lifetime value and so a small gesture upfront wouldn’t be money down the drain. But the rewards need not only be financial. Perhaps its access to certain features, or a special accreditation on their profile, there are numerous way to pull rather than push your customer through this stage of onboarding.

Educate & inform

Identity fraud has become so pervasive that most people are well aware of the subject. Business can use this awareness to their benefit by acting as a guardian, rather than a bouncer, and in doing so earn brownie points and build brand trust. Instead of asking for identity credentials without qualification, explain why. In an age where companies are being publicly exposed for breaches of trust, an opportunity to be seen as the protector presents itself. Showing that you are acting in their best interest can turn a new customer into a fan.

Use the latest digital identity verification solutions

Digital identity verification has matured from a functional, technical capability, to a holistic user oriented experience. Service providers know that onboarding is a sensitive subject for their clients and so package powerful tech into user-centric software solutions. Scanning identity documents with mobile or desktop cameras, followed by a video selfie in order to ensure that the ID belongs to the user, is done in seconds through intuitive identity verification platforms such as Daego by PXL Vision. If you are serious about low friction onboarding, opt for solutions which include functionalities such as zero-interaction liveness checks and automatic ID document detection, emphasizing automation and intuitiveness. By using specialized services as opposed to cumbersome in-house developments the business can focus on what is does best.