We live in a competitive world where customers are one of the most important stakeholders in your company’s success. They have significant power to either promote or discredit your company. As a result, ensuring that all of your customers’ needs are met goes a long way toward boosting your company’s growth. This goes beyond simply making your customers happy to ensuring their loyalty to your company.

Digital identity verification has quickly become a vital component of the customer experience in recent years. With so many social media channels, websites, and apps now available to the average user, businesses must implement security measures to protect their brand and customers. Keeping up with the digital age is difficult for companies of all sizes. Nowadays, providing your customers with quick, secure onboarding processes is critical to give them peace of mind and confidence in your company. Customer trust is essential if you want them to return for more.

This blog post summarizes how digital identity verification solutions can help you build trust with your customers during onboarding by verifying their identities. It also discusses the risks of not using identity verification technology and the need for an integrated solution rather than standalone software. Continue reading to find out more!

What is Digital Identity Verification?

Simply put, digital identity verification is a process that allows businesses to verify their customers’ identities online. This can include using government-issued identifiers to verify a customer’s address, social security number, name, and other personal data or leveraging AI-powered technology like facial recognition or biometrics. Businesses’ ultimate goal is to prevent fraud, protect their companies and employees, and provide a streamlined customer experience.

There are numerous types of digital identity verification solutions available. However, biometric authentication, document verification, knowledge-based authentication, and social media authentication are the most commonly used. Let’s look more closely at each of these options.

• Biometric authentication: uses a customer’s unique physical characteristics to verify their identities, like scanning their finger, palm, or iris. This is presently one of the most secure forms of digital identity verification as it uses an individual’s unique physical and behavioural features.
• Document verification uses scanned or digital documents, like a utility bill, driver’s license, or voter’s card, to verify a customer’s identity. This is a more traditional method of identity verification and can be beneficial for businesses with existing customer data.
• Knowledge-based authentication — uses a process of questions and answers to verify a customer’s identity. This can be used to confirm a customer’s identity or to verify that the person is the rightful owner of an account.
• Risk-based authentication — analyzes a combination of a customer’s ID and device data to verify their identity. This method looks at multiple pieces of information to confirm a customer’s identity, making it a more advanced solution.
• Social media authentication — allows businesses to confirm a customer’s account through their social media profile. This solution is helpful for businesses that rely on social media for sales and marketing.

Benefits of digital identity verification to Customers

There are numerous advantages to implementing digital identity solutions. The primary goal for businesses is to reduce fraud and increase customer engagement. Businesses can use digital identity solutions to verify their customers’ identities without requiring additional information. This shortens the transaction process, making customers happier because they can get what they want faster. Customers benefit from digital identity solutions because they provide greater peace of mind, better protection against identity theft, and greater control over their data. Customers can also anticipate a more streamlined customer experience, with fewer fields to fill out and less personal information requested. Here are some possible ways that digital ID verification can increase customer satisfaction:

1. Guarantees your business security: Using digital identity verification products such as Identitypass endpoints can help ensure your business becomes more secure on its own. Using AI-powered and compliant products reduces the risk associated with online fraud trends. It quickly detects any impersonator who attempts to sign up for your platform right from the start. This way, you can prevent bad actors from entering your platform in real time while protecting your customers from identity theft and ensuring their trust in your company.
2. Increases customer confidence: Your company’s growth depends on the number of customers you can keep. Customer retention is also influenced by your customer’s trust in your goods or services. Integrating with digital identity platforms like Identitypass gives your customers even more confidence that you have their back and that their data is safe with you.
3. Ensures a Convenient Customer Experience: Customers’ interactions with other businesses online have been facilitated in some ways by the rise of digital inclination. Customers now prioritize transaction ease over all other business aspects from the moment they sign up; according to research, 6 out of 10 customers will abandon a long and complicated onboarding process. By incorporating a digital identity verification process, such as Identitypass, your customers will avoid having to provide copies of their identification during signup; this means you can automate your onboarding process and quickly confirm and onboard a customer. This way, your customers will prefer your platform to other competitors and will have a higher probability of staying loyal to your brand.

What identity verification service is Most Suitable for my business?

Your company’s best identity verification service is determined by its specific business type. It’s best to understand how each method works and what they rely on before making this decision. Each method requires vastly different information to complete its verification process. This is why there is no single best answer; instead, ask yourself a few questions before making a decision. However, remember that leveraging a comprehensive verification solution, such as Identitypass endpoints, always helps because it simplifies the process.

The following are important questions: What are the risk assessment factors? What are the requirements for compliance? What are the industry-specific identification requirements? Are there plans for domestic or international expansion, and how can I ensure that the identity service can accommodate them?

Answering these questions thoroughly will allow you to make an informed decision. However, verification service providers such as Identitypass use more than one type of identity verification to meet the needs of businesses with varying requirements.

In summary:

While digital identity verification is often seen as more beneficial to businesses, on the flip side, customers can also take advantage of these solutions to protect their own identities. Digital identity verification has become increasingly popular as a security measure for online banking and other financial services. Many banks now allow customers to use digital identity verification methods, like biometric authentication, to access their accounts. Digital identity verification solutions, therefore, benefit customers concerned about protecting their financial data and help improve their experience with digital platforms.

Schedule a demo today to see how Identitypass can help automate your company’s KYC Due Diligence! Please contact us if you have any questions.