9 tips for Digital Identity Verification in financial services

1. Embrace automation with machine learning

Automating identity verification using machine learning can significantly reduce verification times and streamline operations. This allows a business’s internal compliance teams to focus on more complex cases, ensuring financial institutions meet regulatory requirements and enhance the customer experience.

2. Offer multilingual support

Financial institutions often serve a global customer base, and offering multilingual support during the verification process can help reduce friction. By accommodating various languages, you can improve accessibility and customer satisfaction, lowering the chances of abandonment.

3. Ensure a mobile-first experience

Mobile banking is on the rise, making it essential to prioritize a mobile-friendly identity verification process. A seamless, mobile-first experience meets customers where they are, reducing frustration and ensuring faster response times, ultimately decreasing the likelihood of dropouts.

4. Optimize data collection with user-centric design

Complicated data-entry forms can increase the risk of user abandonment. Simplify the verification process by designing user-friendly forms that minimize effort and maximize efficiency. This not only enhances the customer experience but also speeds up the onboarding process without sacrificing the integrity of KYC (Know Your Customer) protocols.

5. Reduce manual reviews with advanced document verification

Manual document reviews can be time-consuming and prone to error. Implement advanced AI-powered document verification tools to reduce the need for human intervention in routine cases, allowing teams to focus on high-risk cases. This helps improve efficiency while maintaining the accuracy and security that financial institutions require.

6. Incorporate Biometric Authentication for seamless verification

Biometric authentication methods offer fast and secure ways to verify customer identities. This ensures a higher level of security while making the process more convenient and efficient. This is critical for both enhancing customer trust and meeting stringent regulatory demands in the financial sector. Veriff’s Biometric Authentication solution uses AI and facial biometric analysis to swiftly and securely authenticate users, granting instant access to products and services. This fast and fully automated process can be integrated into any stage of the user journey, such as account access, high-risk activities, or account recovery.

7. Monitor abandonment rates in real-time

Tracking abandonment rates at every stage of the verification process helps identify points where customers are likely to drop off. By monitoring these metrics in real-time, financial institutions can make quick adjustments to reduce friction and optimize the onboarding experience.

8. Provide clear instructions to users

Clear and concise instructions during the verification process are essential for reducing errors and minimizing the need for re-verification. Providing step-by-step guidance ensures a smoother experience for customers, easing the workload on customer service teams who would otherwise have to resolve verification-related issues.

9. Offer flexible verification methods

Offering various methods of identity verification—such as document uploads, biometric scans, or live video—gives customers the flexibility to choose the option that best fits their needs. This adaptability can improve the customer experience and reduce friction during the onboarding process, especially for high-value clients who expect smooth, secure transactions.

By adopting these nine strategies, financial services providers can significantly reduce verification times, improve customer experience, and lower abandonment rates, all while maintaining compliance and trust.