Speed will always be a critical factor during account creation, but consumers today, facing constant fraud threats, have become more cautious when engaging online. People value security and understand how identity verification serves as a crucial line of defence.
Consumers see safety and speed as hand in hand during digital transactions. According to a recent Trulioo industry report, 73% of online payments customers say online security is a bigger consideration than it was three years ago, and 52% report being less trusting of online brands.
That shouldn’t come as a big surprise as more people adopt digital transactions and cybercriminals follow closely behind. Consumers reported losing more than USD 5.8 billion to fraud in 2021, and their growing expectations for heightened online security are influencing the identity verification landscape.
Fewer consumers view security requirements as an inconvenience. In the same Trulioo report, 58% of online payment service customers say they have become more tolerant of identity verification during the past three years, while 78% are comfortable with identity verification taking longer or involving more steps.
But consumers still expect fast verification. Finding the right balance between speed and security is the key to building customer trust.
Of course, striking that balance is easier said than done. Many companies hastily blended multiple verification methods and APIs with legacy solutions in a rush to go digital. That often created disjointed processes that widened the gap between onboarding reality and customer expectations.
Too much friction during verification can lead to account abandonment. Too little friction isn’t necessarily better because customers can doubt the validity of the verification process.
A survey of financial service leaders revealed a direct link between verification speed and the likelihood of customers continuing with onboarding. When verification took fewer than two minutes, there was a 19.5% drop-off rate, but it rose to 32.2% when the identity check took 11 to 15 minutes.
Many companies have yet to achieve the perfect balance. Among payment service providers in the research from Trulioo, 57% say they added more identity verification steps to counter security risks, while 40% removed identity verification steps to simplify and accelerate onboarding.
That highlights the lack of consistency in creating a balanced approach to identity verification. Organisations that can find and maintain the verification sweet spot can enhance customer satisfaction, increase retention, and set themselves up for success in a rapidly changing market.
An agile, global identity verification platform can help organisations keep pace in evolving markets, adapt to changing business needs, and defend against emerging fraud attack vectors. Flexible identity platforms enable organisations to customise verification workflows to suit regulatory shifts and use cases in minutes.
Taking a risk-based approach to verification ensures companies apply the appropriate friction at every step, eliminating bottlenecks, and helping streamline onboarding. With nimble verification capabilities, businesses have an opportunity to rebuild the digital trust that online fraud and identity theft have eroded.
Trust and security form the foundation of digital payment services. Safe transactions meet consumer expectations and encourage business growth.
Payment service providers that embrace agile identity verification can improve performance and gain a competitive edge. By creating robust and balanced identity verification processes to meet evolving market conditions and regulatory requirements, companies can protect their customers and gain their confidence with every transaction.
Michael has more than 20 years of experience in the strategic execution of product strategies, particularly for the business-to-business technology industry. At Trulioo, he oversees the launch of new digital identity verification solutions and services.
Trulioo is dedicated to verifying the identity of anyone and any business. Its identity platform drives global growth for organisations by helping them navigate the challenges of compliance and providing real-time verification of more than 5 billion people and 300 million businesses worldwide. By leveraging world-class technology designed to make identity verification faster and more efficient, Trulioo is opening the door to the digital economy for everyone on the planet.
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