Online operations grow by the minute and with them the need to verify in a secure way who is on the other side of your screen. You’ve probably heard the old adage “On the internet, nobody knows you’re a dog”. Well, now you can! And what’s more, it’s easier than you think. Integrating a strong identity verification service can help you find out exactly who your customers are.
You’re probably thinking, hey, won’t asking my customers to verify themselves hurt my onboarding experience? The short answer is no. Customers only get frustrated when they see unnecessary friction. If your user sees value in completing the verification process, they’ll be satisfied. Sometimes adding what you think might be “an obstacle” is the price you pay for quality leads over quantity.
What’s that, you still believe the shorter the funnel, the more customers that will onboard? In theory, you might have a point. However, in some industries such as fintech, lending, and marketplace, regulations demand an extra step known as Know-Your-Customer and Anti-Money-Laundering (KYC/AML) Compliance, and therefore skipping identity verification is non-optional.
Additional benefit? KYC and AML checks help financial services and other regulated firms prevent themselves against fraud, money laundering, and corruption. These are all issues that can affect any business – and that’s especially true for Fintechs. This is where an identity verification service can step in and undertake due diligence of new customers to identify and carefully revise that they are, in fact, who they claim to be.
Let’s assume, for the sake of the argument, that you saw the value of properly verifying your users. Now what? Here are a few tips that might be useful to you.
Tip1: It’s 2020, time to forget about manual identity verifications
When it comes to identity verification, you are faced with 2 options: manual verifications vs. automated. The differences between these two are simple; manual verifications are done internally by an employee or a contractor, who will likely have to:
- 1. Validate manually that the documents submitted are matching;
- 2. Check the authenticity of said document;
- 3. Depending on your local regulations/industry, corroborate with government databases and watchlists to make sure that a) your user officially exists, and b) the user is not a criminal or someone totally unexpected (unless your platform is Twitter, I don’t think Donald Trump will register for your Neobank);
- 4. Conduct a due diligence process if something seems off.
Depending on the efficiency of your team, manual processes will take approximately 5 hours, meaning that your user has to wait around for those 5 hours before fully accessing your service. Not to mention the cost of building an in-house team (around $200,000 USD a year, according to cloudtask).
So, how do automated verifications differ from manual? Well, that’s simple: automation skips the first 3 steps of this painful process with a higher degree of certainty & fewer mistakes, which means that it would take around 1 to 3 minutes max for your users to be verified. One of the biggest reasons potential customers drop out while onboarding is the time of onboarding. By reducing the time in the “waiting room” you reduce possible churn.
Perhaps you still believe manual might be more cost-efficient, but are you willing to have your users be dependent on the availability of the operator? Yes, manual WILL DEFINITELY affect your conversion rates. How so? Take a look at this specific case of Bien para Bien. Clearly, manual isn’t the way to go, especially on today’s on-demand market. “Impatience is a virtue”, and you need to hop on the train. If you deal with a large volume of users every month, it’s probably time you integrate an automated ID verification.
Tip 2: When choosing a user verification solution think about these three important aspects: design, design, and design!
Okay, let’s try a simple exercise; think back to a memorable experience when using an app, or navigating the web, when you found exactly what you were looking for. This might be hard to do, now try this for a negative experience, one where you were left feeling frustrated. Those might pop up into mind a little easier. The point is User Experience matters. A potential customer will be more likely to finish the verification process if the service you implement has a seamless flow and premium design. One that is not difficult to navigate, and actually leaves your user with a pleasant aftertaste. At Mati, this is one of our top priorities since the beginning: providing an elegant, fully customizable flow that is up to the standards of your brand.
Tip 3: Education matters too
Do not forget to build trust wherever you can, display your company logo, customize with your company colors. Make potential clients feel secure. Continue to update the users on doubts they might have throughout the process; this will guarantee the completion of onboarding.
Wondering where to start? Don’t worry, we’re here to help! With Mati 94% of end-users usually complete the verification process in under 15 seconds. Want to see for yourself? Book a free demo now!