With the explosion of digital and online sales of goods and services, the way companies enter into a relationship with their customers has changed considerably. Customer onboarding, which consists of accompanying a customer in the creation of an account or the subscription to a service, now takes place remotely and is intended to be instantaneous, intuitive and easy to use.
But how can we ensure that the user is really the one who claims to be behind the screen? How do you create a relationship of trust on both the customer and the business side? And how do you create a smooth and pleasant customer experience?
Well, it’s simple, thanks to a service that allows you to verify the identity of your customers in a fully automated and secure way. Properly integrated into a KYC (Know Your Customer) process, it allows you to ensure that the user who wants to subscribe to your goods and services is who they say they are. All without impacting the customer experience, as a good automated verification service takes only a few minutes!
Discover 4 reasons to verify the identity of your customers remotely, and the different benefits it can bring to your business.
Verify your customer’s identity to fight fraud and identity theft
Online fraud, and more specifically identity theft, has become a real scourge in the digital age in all types of industries.
It costs the global economy billions of dollars every year, despite the security techniques put in place by governments. But it does not stop there, the human cost for the victims can also be enormous. Indeed, beyond the financial cost, identity theft can have serious psychological consequences and require a lot of energy and time from the victims.
Companies must therefore be vigilant, protect themselves and their customers against identity fraud. Integrating an identity verification service provides this double protection for both parts.
Checking user’s identity to verify their age
An identity verification solution consists of an identity document verification service and a facial recognition identity check service. Together, these services ensure that the users are who they say they are when they subscribe remotely.
By attesting to the authenticity of an identity document, the solution makes it possible to verify the age of the document holder. It therefore ensures that the user is of the right age to benefit from the good or service to which he or she wishes to subscribe. This may concern services intended for people of legal age, or reserved exclusively for specific age groups.
Checking the identity of your customers to comply with regulations
The KYC process originated in the financial sector, and more specifically the banking sector. Indeed, to prevent banks from being involved in money laundering or illegal financial activities, it became necessary to put in place processes to control the identity of customers and the use of their money.
To meet this need, the AML/CFT Directive (Anti-Money Laundering and Combating the Financing of Terrorism) was created. It defines regulatory measures around the financial sector, and obliges its actors to integrate a know-your-customer process in the subscription to their goods and services. Banks, financial institutions, fintechs and insurance companies must now comply with these measures.
But the financial sector is no longer the only one to be concerned, the practices now extend to a multitude of diverse players such as online gaming operators or telecoms players.
Verifying identity to create a relationship of trust with your users
The KYC process can also be deployed to secure exchanges between players and thus create a relationship of trust when entering into a remote relationship. This is particularly true in the collaborative economy sector, which brings together individuals to exchange goods or services, and for which it is therefore necessary to secure the various relationships.
By securing exchanges, it makes it possible to create a relationship of trust between the players. This issue concerns services between individuals, but it also concerns companies that want to know who they are dealing with on the user side. This applies to customers of course, but not only, as KYC can be deployed to create trust in all types of relationships.
Indeed, by responding to new challenges, the KYC process is now addressing new actors in all types of sectors of activity. It is thus diversifying by taking on new variants: KYB (Know Your Business) to refer to the verification of information relating to legal entities, KYP (Know Your Patient) which applies to the medical sector, or KYS (Know You Supplier) to verify the identity of suppliers.
As you can see, verifying the identity of your customers remotely has many benefits for both the company and the user. Whether it is to comply with regulations, to fight against fraud or simply to create a relationship of trust, KYC has become an essential step for companies. In order to remain competitive and to build customer loyalty, it is important to think about fluid, immediate and secure digital journeys, and this starts with the customer’s entry stage: the KYC process.