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Transportation: 5 things to consider before choosing a digital KYC solution

Given the boom in digital technology and online reservations (carpooling, plane tickets, scooter rides, etc.), the "Know Your Customer" (KYC) process allows transportation companies to verify the identity of their customers. The purpose? To secure the relationship and fight against fraud, which is constantly increasing. How should transportation players choose a digital KYC solution?

Transport Choix Solution Kyc2

KYC is essential to check customers’ identity

Is your customer who they say they are? Integrating a KYC process into your online onboarding helps answer this question. The idea is to identify fraudsters without discouraging legitimate customers, via a smooth, instantaneous but also secure customer journey!

What is a remote identity verification solution?

It’s a solution that allows to fully digitize the customer journey, from the onboarding stage onwards, regardless of the device used (tablet, smartphone…). This process has evolved considerably: a few years ago, the customer had to go to a bank to provide the documents needed to confirm his account opening. Today, everything is done remotely. It’s not a simple matter of collecting documents but a global analysis, aiming to ensure the authenticity of the user’s profile.

KYC process: how useful is it in the transportation sector?

Although the mobility sector is not subject to regulatory obligations, the identity of customers must be verified in several situations: subscription to a train, bicycle, scooter, etc. The KYC process allows transport players to ensure that the person behind the screen is who they claim to be.

Like all other industries, transportation is facing an increasing digitalization of uses. Users are increasingly interested in instant mobile services. Take the example of the train: “72% of the audience of oui.sncf (now sncf-connect) is done on mobile”[1]. At the same time, the transport sector is facing an increase in fraud: it is said to exceed 15% in provincial urban transport.

A remote identity verification solution therefore meets this sector’s expectations, providing a secure and digitalized service:

  • Improving the customer experience decreases the abandonment rate and contributes to increase the conversion rate.
  • Secure processes increase trust and reduce fraud.
  • Process Digitization reduces back office processing time and costs.

How to choose the right KYC solution for your needs

Your future KYC solution must…

Improving the user experience on subscription journeys

Traveling and connected, the user seeks to subscribe (train, bike, scooter …) or rent a car quickly and easily, whether using a smartphone or his computer.

You must therefore choose a solution capable of offering a complete and autonomous digital, web or mobile. Digitization can even go as far as contractualization through electronic signature, for example for a vehicle rental contract.

In other words, your users must be guided through each step of the subscription process, with precise indications: what they should do, why, how… The whole process must be fluid and without interruption. As for the answer, it must be automated and instantaneous: the user doesn’t wait and his onboarding is not delayed. In short, the process is not perceived as a hassle!

Bringing immediacy

Users are constantly looking for a quick service. To meet their expectations, it’s in your best interest to choose a service able to deliver ever shorter response times. The outcome? Increased conversion rates! As users demand more and more responsiveness, real-time controls are becoming a must.

While some automated solutions give a verdict in a few seconds, others take several minutes to give an answer since they involve operators.

Limiting fraud due to digitalization

Choose a digital KYC solution that meets your needs for document types and geographic coverage.

Depending on the solution you choose, you will be able to check:

  • Identity documents.
  • Drivers licenses.
  • Various other documents, such as proof of address.

By opting for a KYC solution capable of biometric verification, you can ensure that the person behind the device is who they say they are. Such a solution allows you to cover the maximum number of fraud attempts. It automatically analyzes the documents provided and captures the user’s face to avoid deep fakes or stolen documents. Some solutions offer an additional manual review, performed by an operator.

Diminish back office processes and costs

Before choosing your KYC solution, take the time to look at the service commitments and response times of the service provider you will use. You will not only save time but also money!

Automation drastically reduces the risk of human error: the process becomes more compliant and traceable, allowing you to avoid potential penalties and fines. At the same time, your teams can focus on higher value-added tasks.

Bringing trust and security

With personal data breach increasing by 24% between 2019 and 2020[2] in France, it’s essential to choose a reliable and privacy-friendly digital KYC solution. Why? Reassure users, providing a sense of trust, and maintain your company’s good reputation!

ARIADNEXT is committed to ensuring that the processing of information (whether or not it’s biometric data) does not incur any risk of leakage by controlling the processed data and avoiding risks associated with the cloud. We are fully compliant with the General Data Protection Regulation (GDPR) and we process the data ourselves in our own infrastructures located in Europe.

Do you need to implement a digital KYC solution in your transportation company (rail transport, vehicle or scooter rental company…)? Make sure you turn a burden into an opportunity! Five aspects must be taken into account when choosing your KYC solution: user experience, immediacy, ability to fight fraud, cost reduction and data protection security.


[1] https://vous.sncf-connect.com/le-groupe/chiffres-cles

[2] Rapport d’activité CNIL – publié en 2021

https://www.cnil.fr/fr/la-cnil-publie-son-rapport-dactivite-2020

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