PwC recently released their 2022 Customer Loyalty Survey, compiling insights from more than 4,000 U.S. participants on consumer behavior two years after the start of the COVID-19 pandemic. The pandemic drastically affected business operations and changed consumer needs, resulting in accelerated digital transformations in organizations and increased tech savviness in customers. PwC notes that technology created “unprecedented connectivity and access to goods and services.” However, PwC further concludes that “volatility in consumer behavior is at an all-time high.” Armed with readily accessible information, consumers are more willing to try new brands and walk away from ones they do not like.
“[O]rganizations that deploy DIV (digital identity verification) platforms and authentication measures experience friction from some end users who question the privacy controls and personal data protections of these systems.” (Frost & Sullivan executive brief, “The Next Phase of Digital Identity Verification and Authentication: Closing the Trust Gap to Transform the Customer Experience,” page 5.)
Can you imagine a vacation or a business trip where you can board a plane, check in and pay for hotel expenses, and rent a car just by looking at a smartphone? Have you thought about the convenience of making a payment or checking in at buildings, all without the need for a credit card or access card? What about arriving in another country without having to show your passport at immigration controls?
In July, Cheryl Chiodi wrote an article for the Bank Administration Institute (BAI) that addressed how banks can streamline chargeback representment, an important topic for the financial services industry. If you’re not familiar with “chargebacks” or “chargeback representment,” here are the definitions of these terms:
What does the phrase “progressive identity verification” mean, and why is it important?
We use the word “friction” in multiple contexts. In identity proofing, friction results when it takes significant effort for a person to prove who they are. If it takes a user too long to prove their identity, the user may become frustrated and give up. This hurts businesses that depend upon digital onboarding for their customers.
Are your users who they say they are? Robust online identity proofing protocols boost cybersecurity, prevent fraud, and ensure regulatory compliance. Here's what online identity proofing, including both identity verification and authentication, really means and how your organization can verify or authenticate a person's identity online.
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In the financial services industry and in other industries that depend upon financial transactions, “eKYC” stands for “Electronic Know Your Customer” or “Electronic Know Your Client.” It is an electronic type of “Know Your Customer” (KYC) implementation.
Leading government agencies are digitizing and streamlining traditional identity verification processes—from financial professional background checks to driver’s license renewals to entitlement applications. With digital processes, constituents do not need to carry their personal documents to application centers, travel to remote offices, or wait in line for a clerk to manually process their applications. This reduces staff burden, mitigates risk, and improves the constituent experience by providing services more quickly, conveniently, and securely than traditional in-person methods.
As Know Your Customer (KYC) guidelines have adapted to keep pace with technological advances, Application Programming Interfaces (APIs) have become critical tools to help organizations comply with KYC requirements at scAs the demand for self-service onboarding solutions continues to grow, companies in the financial and fintech industries must rely on technology to ensure they're prioritizing security and regulatory compliance without sacrificing customer experience.