Streamline the Customer Experience With Online Identity Verification

Ma-Keba Frye  |  August 12, 2020   |  ID Verification  


The sharp increase in online customer interactions during COVID-19 has forced the banking and lending industry to accelerate digitization across its operations. But financial services providers are still a top target for cybercriminals, and account openings are an especially vulnerable area. According to a 2019 KPMG Global Banking Fraud Survey, over half of the respondents recover less than 25 percent of fraud losses  – the need for tighter online identity verification and improved fraud protection is clear.

Customer experience has been a key differentiator in the financial services industry, especially given competitive pressure from fintechs. Banks and lenders are increasingly looking to improve the customer experience online, which means a seamless and mobile-centric onboarding experience. As a result, leaders are demanding solutions that enable them to balance streamlined customer experiences with mitigated risk. This predicament presents an ideal opportunity for loan origination software providers and identity verification software companies that support the lending industry.

Traditional identity verification methods are no longer sufficient

A recent TransUnion analysis found that since early March, the percentage of risky transactions have increased by 11 percent. Under current circumstances, Aite Group projections show that fraud losses could increase by 10-15 percent. As identification technology advances, so do identity thieves’ tactics. With the threat of synthetic fraud and identity theft on the rise, banks and lenders need new approaches to protect themselves and their customers.

The only way to combat new account fraud is with a holistic, multi-layered approach that seamlessly integrates with existing processes.

Relying on customer service agents to detect whether a new applicant has fraudulent intentions is not the answer, as new account fraud continues to increase year-over-year. Onboarding systems are being tested under the current climate, prompting the need to incorporate secure online identity verification solutions. The only way to combat new account fraud is with a holistic, multi-layered approach that seamlessly integrates with existing processes.

Multiple layers of protection better support current market needs

Performing accurate, efficient, and customer-friendly verifications is central to the successful conversion of valid customers. A frequently used method of asking applicants to collect documents, scan them, or take and upload pictures introduces excessive friction. 


Learn how to access customer utility bills for identity verification with a seamless process


But with fully automated online identity verification solutions, there’s no interruption. Loan origination software providers that offer multiple digital-first options for online identity verification can help lenders mitigate risk without compromising the onboarding experience. 

Reduce risk by leveraging online identity verification and alternative data

Identity verification and loan origination systems that incorporate additional data sources into the identity verification process can significantly improve both security and customer experience for banks and lenders. By offering a solution that allows the end user to digitally connect their utility account for verification, software providers can offer an uninterrupted online experience. Leveraging alternative data also enables banks and lenders to reduce risk and expand their customer base.

Interested in learning more about the latest alternative data innovations? Join us at our virtual event: Driving Growth in Financial Services with Consumer-Permissioned Utility Data





If you like what you’re reading, why not subscribe?

About Ma-Keba Frye

Ma-Keba Frye is a Content Marketing Associate at Urjanet, assisting with content development and execution. When she's not writing, she enjoys reading, listening to music, and volunteering.

Tags   Alternative Data   |   FinTech   |   Identity & Fraud   |   Identity Verification   |   Online Lending   |   Urjanet   |   Utility Data   |