Financial institutions must foster personalized digital experiences to stay competitive. A robust multi-layered identity verification process is an essential piece of the personalization process.
With each passing year, the competitive landscape becomes more challenging for financial institutions. In addition to maintaining compliance with changing industry regulations, they face growing competition from digital fintech challengers. At the same time, household names such as Amazon and Netflix have perfected the digital experience, essentially leading consumers to expect the same level of personalization from every brand they engage with, including financial institutions.
Recent research shows that rising above the noise and taking back market share will require financial institutions to meet consumer demand for personalized experiences that rival those offered by digital disruptors. With nearly endless choices, ninety-one percent of consumers said they would be more likely to shop with a brand that recognizes them and provides relevant offers.
However, consumers show discomfort over how their Personal Identifiable Information (PII) is collected and what companies do with that data. Our 4th Annual Consumer Digital Identity Study revealed that 70% of American consumers believe companies collect personal information without customer knowledge. Additionally, those surveyed are “extremely to very” concerned about companies collecting personal data without their permission. These findings show growing skepticism, if not distrust, and highlight the importance of personalized, transparent policies for collecting and using customer data.
While personalization offers the potential to forge a stronger connection, financial institutions can’t overlook consumer concerns about how organizations handle personal data. Balancing the need for data to support personalization with digital privacy concerns is a growing challenge. As a result, a robust digital identity verification process is essential for kicking off the personalization process, here’s why:
As consumers spend more time online, the expectations for seamless digital experiences skyrocket. Financial institutions must look at ways to create enhanced customer journeys that build trust. As trust deepens and the customer supplements the data in the financial institution’s possession, personalization becomes easier to deliver and more insightful.
Learn more about how IDology’s ExpectID digital identity verification platform can help your journey to personalization that rises above the noise and connects with customers on a deeper level in our latest whitepaper, Getting Personal: The Role of Identity Verification in Customer Personalization Programs.