How banks are using new identity verification methods to boost conversions and keep their customers loyal

ArchiveJun 13, 2018

2 min read

The strict verification standards that banks are held to have led them to create onboarding and login processes that are painful for clients. Plus, the verification methods they use to remain compliant can actually end up putting customers' personal data at risk. This leaves banks with dented customer satisfaction, as well as security breaches and legal costs.
Several factors are now pushing banks to attempt to remedy the situation, including a tougher regulatory environment and increasing competition from agile startups and tech giants like Google, Amazon, and Facebook, where speedy onboarding and intuitive service is a given.
The trick is to streamline verification for clients without compromising accuracy, something several emerging technologies promise to deliver, including biometrics, optical character recognition (OCR) technology, cryptography, secure video links, and blockchain and distributed ledger technology (DLT).
The long-term opportunity such innovation presents is even bigger. Banks are already experts in vouching for people's identities, so if they were to figure out how to successfully digitize customer identification, this could help them secure a valued place, and relevance, in a modernizing economy.
Looks at why identity verification is so integral to banking, and why it's becoming a problem for banks.
Outlines the biggest drivers pushing banks to revamp their verification methods.
Gives an overview of the technologies, both new and established but repurposed, that are enabling banks to bring their verification methods into the digital age.
Discusses what next steps have to happen to bring about meaningful change in the identity verification space, and how banks can capitalize on their existing strengths to make such shifts happen.

Published June 13, 2018