Consumers do not like waiting to access their accounts. According to PYMNTS’ research, nearly half of consumers have concerns about waiting a long time during identification processes, demonstrating how customers want frictionless and streamlined experiences when logging in to their accounts. Advanced digital ID tools are gaining wider acceptance, with 29% of consumers very or extremely interested in such technologies.
Consumers cite difficulties with select aspects of their online accounts: 31% are concerned about keeping track of login credentials, 25% worry about memorizing username and password combinations, 21% have doubts about the safety of credentials stored in their browsers and another 21% are concerned about the safety of money or payment methods stored in their browsers. The advanced ID verification solutions that eliminate the need to memorize credentials and improve security hold the most promise.
Companies that remove identity verification friction stand to gain revenue
Leveraging advanced digital ID technologies makes eliminating friction from outdated security systems possible for more businesses than ever. Those that can modernize their verification in meaningful ways are poised to create easier and more secure customer journeys that will increase market share.
Removing friction during the onboarding process is most important, with 69% of consumers believing the speed and ease of their customer experience during sign-up for financial products is somewhat or very important, such as for credit cards, checking or cryptocurrency accounts. Fifty-one percent of U.S. consumers said they would switch brands due to slow identity verification processes. Organizations that can deliver the right experience can win the kind of customers that remain loyal and boost revenue.
FinTech solutions and omnichannel strategies can help FIs meet digital demands
Customer interactions will dictate how FIs approach establishing the right communications at each step of the customer journey. Research showed that 9 in 10 consumers think it is important for brands to reach them on their preferred channels such as text messaging, social or other communication apps. When it comes to quick questions or confirmations like two-factor authentication (2FA), 46% preferred text messages over email. Consumers also demand speed in their verification: 58% would want to receive a 2FA text message immediately, and 41% would consider abandoning their purchase if they had to wait to receive one.
Multimodal biometrics among innovations that mitigate friction without sacrificing security
The primary challenge of digital ID verification for FIs is mitigating friction while adding layers of security to the process, since security adds complexity by its very nature. This is especially crucial during onboarding, and the race is on to win customers with a truly frictionless experience.
Reducing false positives — instances when a legitimate account holder is flagged as suspicious — is a key goal for many FIs in their onboarding process, and innovative new models are emerging. Multimodal biometrics, which combines behavioral analytics and biometrics, is improving authentication in smart city environments, and its performance-boosting fuzzy genetic algorithm is better at spoofing resistance. Implementing multimodal biometrics can bring added security and accuracy to FI authentication systems.