By Reinhard Hochrieser, Director of Product Management at Jumio
It’s no secret that online banking is fast becoming the norm for consumers today.
But while 71 percent of adults used internet banking in 2017 according to IT Pro, the application process remains a barrier between the bank and customer for many.
Particularly so for millenials, with 38 percent of online bank account applications abandoned by this age group due to long or complicated enrollment processes, according to a survey by Javelin Strategy & Research and Jumio.
More than ever before, banks are striving to increase new account enrollments through faster, easier and lower-cost digital channels. Yet, the current regulatory and cybersecurity landscape creates a layer of complexity. Consumers want the convenience of signing up online without having to go into a branch office, but financial institutions must comply with anti-money laundering (AML), Know Your Customer (KYC) and GDPR regulations that have historically driven new customers out of their preferred digital channel.
It’s therefore vital that the online verification stage isn’t the hurdle standing in the way of you and your potential next customer. In order to ensure you’re providing a slick and seamless application and verification process, here are the top five considerations you should be thinking about.
Ensure global capability with a local touch
The ability to cover multiple markets is only going to extend your reach and potential customer base. But if you can’t address that user base in a regional way, you’ll soon see your conversion rates drop. Start with the basics—make sure your authentication and verification processes are in the right languages. According to independent research firm Common Sense Advisory, 60 percent of foreign language speakers never even look at a site if it’s in English. This clearly demonstrates the importance of local languages.
The next consideration for servicing multiple markets when it comes to verification is the need to accept a variety of different ID types. You simply cannot expect that a passport or driving licence are the go-to ID types in every country. For example, in countries like Germany, ID cards are commonplace. In India, the Aadhaar Card is used widely. Being able to automatically capture and verify a wide range of ID types is important in maintaining and boosting conversion rates.
Make it easy
Simplicity works. Modern identity verification solutions enable banks and financial institutions to modify the look and feel of the screens so they mirror your brand, including the colours, the text, the buttons and even the number of screens included in the user journey. This goes a long way in making the verification process feel as though it’s another step in the journey, as opposed to a completely different one. In addition, ‘quick wins’ like pre-populating forms where possible will add to the ease of use for the customer. By shortening the identity verification process to just three screens, some customers have seen a 15-percent increase in conversion rates.
Offer a truly omnichannel solution
Importantly, browsing habits of consumers have changed and your onboarding process needs to mimic that. More and more traffic is moving towards mobile web, especially in developing countries where everyone has just a phone and no desktop computer. This means it’s important to offer truly omnichannel solutions, and to ensure all steps of the onboarding process can be done seamlessly whether on web, mobile or tablet.
Many ID verification solutions only support smartphone image capture and exclude other channels such as desktop webcams. By excluding webcams, these vendors are excluding large market segments who are more comfortable on their desktop and laptop computers.
Being omnichannel also means supporting API-based, mobile web and native mobile implementations. For companies looking to cast the widest possible net, including some older people who may not be comfortable with newer technology, it just makes sense to ensure that your identity verification solution offers the broadest number of channels to your users.
Feedback is essential
If a would-be customer is declined during the onboarding process without feedback, it’s a sure-fire way to ensure they won’t make a second attempt. But it could be that they have been declined for something easily rectifiable.
Better verification solutions will return additional information about why an ID was rejected— for example, if the photo taken was a photo of a computer screen, or a selfie was actually a photo cropped from the physical ID. These extra d
etails are exceedingly valuable for banks and financial service organisations to improve conversion rates and lessen the friction of its users.
With a simple “yes” or “no” solution, these good users would be rejected out of hand without being given the chance to course correct. Unfortunately, many online solutions return only a score, usually falling into the following: clearly good, clearly bad and a large middle-ground of grey transactions. If users can rectify the mistake during the session, you’re going to see a far higher conversion rate.
It may be a dry topic, but it’s incredibly important. You absolutely have to be able to support different compliance and regulation rules. From AML to KYC, you have to adhere. Particularly when it comes to providing feedback on why an application was denied—the recent GDPR stipulates that the organisation must be able to give a reason within 30 days of request. Importantly, you need to be aware of any local regulations too. For example, German authorities require masking particular data points (ID number and Access Number) on IDs to protect the end users. Quality online identity verification solutions mask these data points accordingly, which means the data points are not stored or returned to businesses, thus helping businesses remain compliant.
The onboarding process need not be the stage at which you see potential customers drop off—it should be the stage that proves your accessibility and ease of use. With a quality online identity verification solution in place, you stand to convert more customers while also offering a user-friendly onboarding experience that sets the tone for future interactions.