Confidence 2.0: Authentication in the Now Economy
Identity Verification
Rupert Spiegelberg, CEO of IDnow, explains how video identification is helping fintech companies gain customer confidence in the Now Economy.
In a world where data breaches are so commonplace they barely make the news, persuading a customer to share their personal and financial details online requires two important things: trust in the institution and a positive user experience. Fail on either of these levels and the customer will likely terminate any transaction before signing on the dotted line.
This is particularly true for the financial sector, which experiences the highest number of failed sign-ups – known as 'leakage' in the industry – mainly due to stringent legal requirements for identity verification. Ultimately this makes for a long-drawn-out process for the customer. While transactions within this sector have to remain understandably airtight, they nevertheless need to factor in convenience for customers. This, after all, is why they've chosen to sign-up online in the first place, rather than visit a traditional institution.
In the Now Economy of instant interaction and gratification, buying, selling, booking, renting, applying, publishing and account opening are all possible while on the move, or from the comfort of a customer's home. Banks who can win customers over with their online offering and maintain their confidence to the end of the sign-up process will be rewarded with a closed deal and a happy customer. However, online banking is governed by special regulations, such as the Know Your Customer (KYC) standards set out in the EU's Third Anti-Money Laundering Directive. This means that handling online transaction processes in the financial sector is considerably more challenging, than it is for example in retail.
Read the full article on The Fintech Times