Digital Identity Document Verification (DIDV) in Financial Services

May 7, 2020

2020's business imperative

Today, companies that are digital have an imperative way beyond providing a secure platform. It means delivering a service that is simple to access, easy to use for customers, and protected from cyber-risks. In the financial services sector alone, the percentage of banking products consumers can open through digital channels jumped from 43% to 76% since 2018 — and about 90% of these can be opened from mobile devices. Not only do businesses want assurance of “who is who” on their platforms, consumers and users are increasingly asking the same of their providers.1

The requirement to prove who a user is in the digital world is essential for access to an ever-expanding online universe. For businesses, how they ask for and verify proof of identity from current and potential customers is also a key factor in determining their ongoing success. 

Consumers are becoming more comfortable with digital identity verification.

As they become more digitally adept, consumers realize they are more vulnerable and tell us that “positive friction” indicates that the platform could be more secure (link to our Consumer Report here). Banks and financial institutions (FIs) therefore need to answer the following question… 

When is the best time to introduce DIDV? 

Digital identity verification involves authenticating an identity document along with biometrics (e.g. a selfie) to prove a user’s unique, real-world identity. But now you’ve added extra steps, a process that adds “friction” in the customer flow. 

When to introduce digital IDV is an important decision that requires a strategic approach. Is it more important to maximize new customer acquisition or reduce fraud? Once primary objectives are clear, FIs can balance implementation to cover:

  1. Friction tolerance
  2. Verification assurance
  3. Speed required

Friction isn’t always bad. Used correctly, it can be an effective tool in protecting your business and creating brand trust. Fortunately, most customers recognize these extra steps help establish good relationships with their financial institution. 72% of US customers have indicated they are willing to share more personal information if it means easier, secure access to accounts later. 2.

We can’t predict the future, but Mitek can help position your business for success in the growing shift to digital.

Download the Strategy Guide for Implementing Digital IDV in Financial Services to learn more about how to effectively implement and use an Identity Verification service on your platform.


Sources:

  1. Mitek, The Future of Identity, July 2019.
  2. 2020 Global Identity and Fraud Report, Experian Information Solutions, Inc.