How Banks Can Build Data Diversity With ID Verification

Data is fuel for making comprehensive business decisions. Leading institutions see multi-layered points of verification as a top best practice for successfully locating, approving, and onboarding legitimate customers. A survey by CITE Research Dassault Systèmes showed consumers are willing to give personal data to get a personalized digital experience and will spend more.

So, how can financial institutions unlock more relevant data insights? A robust identity verification (IDV) program can provide FIs with secure access to identity data to deliver the digital banking experiences customers demand. This post shares how IDV can help banks with fast-tracking access for legitimate customers and apply friendly friction as needed for suspect identities.

Build a holistic view of consumer identities.  An effective IDV solution empowers banks to build a fuller picture of current customers with the data they collect to verify identities.

When implemented successfully, an identity verification solution empowers institutions to collect more data insights with less effort from the consumer. A flexible solution provides opportunities for ‘lighter touches’ throughout the consumer journey, especially during onboarding.

These lighter touches allow you to collect data you need, when you need it, without adding unnecessary friction. For example, a consumer could submit a single attribute, such as an email address, upon initial contact. This single attribute can be used to evaluate risk and build input submissions with additional non-personal identifiable information data.

Confidently verify more real customers. With a more complete picture of consumers, banks can confidently locate, verify, and approve more legitimate customers, especially those more hard to find individuals.

Millennials and Gen Z, for example, are now the largest generational demographics in the U.S. and have a growing influence on the industry.  However, these two groups are seen as difficult to verify due to not having a lengthy banking history.  So, having a tool that can

A solution that scours thousands of data sources containing billions of authoritative public and proprietary records offers the ability to instantly verify a consumer’s identity. With the depth and breadth of diverse data sources provided by a robust verification solution, banks can uniquely verify more “thin file” or hard-to-reach populations and grow their customer base.

Create seamless experiences consumers can trust. Collecting data and handling it securely helps build trust with consumers.

Our research found that 93 million Americans abandoned signing up for a new online account last year in part because the process did not seem trustworthy. Additionally, 70% of Americans suspect that companies collect data without their permission, and 59% don’t trust companies to safeguard their information. Consequently, excelling in today’s environment requires embedding identity verification that instills trust in the onboarding process.

With these findings in mind, it’s critical for banks to keep friction to a minimum. This is especially true when collecting data during the onboarding process. With consumers expecting trustworthy digital interaction, institutions should rely on lighter touch tools that don’t demand a lot of personal data.

A holistic consumer identity allows banks to onboard customers quickly while providing a personalized digital experience that consumers demand. The right identity verification tools will give potential customers a fast lane to your products and services.

Learn more about the role of identity verification in developing holistic consumer identities in, Curbing the Data Demand: Building Deep Data Diversity with Digital ID Verification, featured in BAI Banking Strategies Executive Report.

Filed Under: Blog

News & Events

Upcoming Events