Notifications
The online economy is revolutionizing our lives, creating exciting opportunities for both consumers and businesses. However, these same techniques are also increasingly enabling scammers and online criminals. Businesses need to make sure their remote identity verification procedures can reliably tell good actors from bad ones and safeguard all the sensitive personal data that customers provide them.
According to Experian, in 2022, financial losses as a result of fraud jumped 77% from the previous year (2021), to more than $6.1 billion. What’s more to consider is the fact that in 2022, the global cost of cybercrime was estimated at about 8.4 trillion dollars, according to Statista. By 2023, the cost of incidents brought on by illegal online activity is predicted to surpass the 11 trillion U.S. dollar mark. In addition, privacy regulations like the GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act) have increased the cost of compliance and operating a business. Companies that make wise investments in their onboarding procedures can keep costs under control, maximize customer acquisition, and put themselves in a position to take advantage of emerging market, technology, and risk prevention possibilities.
Nowadays, a number of companies are looking to data to help them make more strategic decisions concerning identity verification. Identity verification has changed in recent years from being viewed as a tactical compliance effort to becoming a key strategic driver of customer and corporate value, a shift that has been amplified by the pandemic. Businesses in all sectors, from those making their first digital move to those with a long history of operating online, now prioritize identity verification as a top priority.
In an effort to be the best in their field, gain customers’ trust, improve the customer experience, and gain a competitive edge, many businesses are now actively pursuing identity verification. After all, 80% of customers said they would be more willing to interact with a business online if it had strong identity verification methods in place, according to the 2022 Jumio Global Consumer Research report centered on digital identification.
There are some questions, though. How do companies evaluate the success or returns of the money they spend on identification services and technology? What are the Customer Due Diligence KPIs and significant metrics that they are overseeing? How does customer identification and verification measurement need to change in order to support and strengthen its new strategic significance?
Here are five essential steps that can help your company create best practices for your identity verification procedures:
Today’s progressive companies are approaching identity verification more strategically, realizing its significance goes beyond fraud prevention and legal compliance. Optimized identity verification and onboarding, which take place at the beginning of the customer journey, set the atmosphere of the whole experience and can increase customer loyalty and decrease abandonment. These are some questions you should ask in order to get the most out of your investment in identity verification.
In order to get the most out of your investment in identity verification, you should consider the following questions.
Your company could employ a more strategic approach to onboarding new customers by taking these questions into account and implementing a layered strategy for identity verification that fosters brand loyalty and boosts revenue. At FTx Identity, we are devoted to ensuring your business is a success while keeping your customers’ information safe and secure. We take pride in providing you with the peace of mind that comes from knowing all data will be truly protected. Ready to take the next step? Give us a call today to set up a consultation and demo with one of our specialists today!
