Traditional businesses are taking their operations digital, and it’s becoming more important than ever to securely verify who is actually using the service. Here are the benefits of digital identity verification for business…
The digital revolution is transforming every industry, particularly banking and regulated industries. There is a lot of pressure in banking around digital transformation. They must verify new customers, as well as existing customers, avoid online fraud and comply with the different regulations that govern them, while they are under pressure to acquire new customers in digital channels.
Most consumers today will be signing banking forms or applications through mobile phones, computers and tablets. So, there is a need to introduce a fully digital customer journey. This means that every touchpoint (from signing documents to verifying the user) should be digitized. Digital identity verification is something that has to be fulfilled in order to digitize onboarding (getting a customer to sign up for a bank account, for example, entirely online).
Customers value speed and convenience, but also expect to be kept safe: where access is gained without the hassle of using different passwords and data is exchanged only with consent. Digital identity verification provides faster onboarding times, but also provides consumers with the convenience and control they want as part of a seamless user experience.
Digital identity verification is quicker and easier than its manual equivalents. It’s very time-efficient for businesses that need to facilitate interactions with people – such as banks, insurance companies, car hire services, or trust-based platforms such as Airbnb – but find it difficult to meet every customer face-to-face.
Instead of spending time checking IDs in person when getting contracts signed, your business can trust that the user is who they say they are with digital identity verification. This is key to building trust in online channels, where trust has been challenging to establish.
In most European countries, there are electronic identities (eIDs), which are already verified digital identities, and methods consumers are used to using when signing up for new services. eIDs are so called reusable identities, which means you can use the same digital ID method across various services and industries.
As well as time savings, digital identity verification could result in significant cost savings. According to a report by McKinsey Global Institute (MGI), by using digital ID-enabled processes, this could reduce the customer onboarding costs by approximately 90%. Streamlined digital identity verification is vital to the adoption of new products or services. It can also help to remove friction from the onboarding process and help to gain new streams of revenue.
Digital identity verification can help businesses to rapidly expand into new geographic markets, which can open new business opportunities. Companies don’t miss out on the possibility of new potential customers from different areas coming into their establishment to sign up with IDs or documents of proof. Everything can be verified online.
With digital identity verification, the business will have the customer’s ‘data attributes’, such as ID number and other information that proves this is the person they say they are. This allows businesses to recognize safe transactions and avoid risky ones, regardless of where the customer is based.
eIDAS, which stands for electronic Identification (eID), Authentication and Trust Services, is the European regulation designed to ensure that electronic interactions between businesses and consumers are safer, faster and more efficient, no matter the European country they take place in. The model defines the standards for how trust service providers (TSPs) are to perform their services of authentication and non-repudiation. To gain trust from customers, businesses should use a leading provider of trusted identity verification solutions. A trusted list of service providers can be found on ec.europa.eu/digital-single-market/en/eu-trusted-lists-trust-service-providers.
Solutions Marketing Manager at Signicat
June 29 2020