Challenges to Identity Verification: Customer Experience, Cost, and Compliance

As part of a sound account opening process, identity verification is a crucial part of evaluating new customers to comply with Know Your Customer (KYC) regulations. It can be time consuming, costly, and produce a negative customer experience when manual intervention is required.

While manual reviews and document requests help with assessing tough-to-verify applicants, consumers are increasingly demanding a low-friction customer experience, and the operational costs associated with manual screenings continue to climb.

One of the challenges of effective identity verification is staying in compliance with KYC regulations while ensuring a smooth customer experience.

Data is the Differentiator in Identity Verification

Consumers are intolerant of any extra steps during account opening and may abandon the process if it becomes too cumbersome. Organizations recognize this pain point, but non-compliance with identity verification can lead to extensive fines and penalties.

KYC processes require an efficient and affordable assessment of identities to ensure your organization is complying with regulations while keeping customers happy and managing your bottom line.

Tackling this challenge requires detailed data with a broad, cross-industry perspective of U.S. identities.

A Better Way to Achieve Identity Verification

The most effective identity verification process is one that is fast and frictionless; one that your customer doesn’t even know has happened.

Visibility into markets such as telecommunications and online lending can help to more efficiently clear or remediate most individuals, allowing consumers to proceed through an onboarding process.

Using a near real-time, automated identity verification process helps organizations:

  • Reduce friction by accessing the critical insights needed to verify a high percentage of identities without manual intervention
  • Remediate tough-to-verify identities with unique, cross-industry data not captured by traditional credit bureaus and public records
  • Improve operational efficiencies by providing element-specific verification flags needed to enable more customized strategies and efficient manual reviews

ID Analytics has the identity verification insights needed to address your KYC compliance needs while preserving a positive customer experience.