In today’s digitized world, a person’s digital identity gives them access to a range of products and services that are either only available or easily accessible online. Most businesses online require users to open an account on their platform to access the products or services they offer. The user, in most cases, has to undergo an identity verification process which ties the user’s identity to activities on their account. This is recommended by relevant regulatory bodies as it aids the fight against money laundering and other kinds of fraud.
Though digital identity verification comes with potential vulnerability (like a data breach leading to the person’s private information getting into the hands of fraudsters), it is here to stay. Hence, protecting the user’s identity through strong security and user identity verification methods is a non-negotiable strategy for platforms who want to gain users’ trust.
It’s worthy to note that security should not be the only priority, as a good user experience also helps improve users’ trust in your business. It is important to find a balance between security and good user experience to ensure customers signing up for the first time do not abandon your identity verification process. Identity verification is crucial for businesses with high risk, such as Virtual Asset Service Providers (VASPs), casinos and gambling platforms, online gaming, age restricted product and service providers, airlines, accommodations & ticketing agents. These industries are required to carry out KYC processes to be compliant with Anti-Money Laundering (AML) regulations. Therefore, the process should be made interesting for customers to mitigate the rate of abandonment.
A recent study found that the average attention span of humans has dropped from 12 seconds to eight seconds in recent years. This suggests that online businesses have to develop ways to keep users engaged during an ID verification process and at the shortest duration possible. In sum, there is a delicate balance needed for security and user experience, that not only protects companies but also ensures users complete the verification process with little or no friction. But how can you make your ID verification process interesting at sign up? Here are some helpful tips.
Making your ID verification process interesting
Since many companies can no longer risk running their online business without identity verification, it is important to consider ways to avoid user drop off, build trust and increase conversion and retention rate by a reasonable margin. Here are ways to make your identity verification process interesting for users at sign up:
1). Reduce the number of clicks and stages: User abandonment can be reduced to a large extent when you provide users with fewer forms to fill, stages to scale through and fewer clicks. For instance, statistics show that almost 30% of people abandon a process if the forms to be filled are too long. There are also those who cite security concerns as their reason for not filling such forms. Hence, it’s imperative to narrow down the data needed from participants for processing, to the most relevant. It means that users are more willing to engage with your platform when they feel it’s less taxing and they have fewer clicks to make. Since some users already feel like ID verification processes intrude on their privacy, the less information it appears they have to provide, the better. It also saves the customer and your company time, as a swift process may make them feel less apprehensive.
2). Unique biometrics: As a customer creates an account on your platform and sets up a password, also offers the option of subsequent sign-ins with biometrics. Fingerprint and facial recognition are always interesting options for users.Though customers see it as an interesting feature, it also gives them a certain level of trust in the security of your platform.
3). Make the navigation process less challenging: Making your platform responsive and easy for customers to navigate can help boost conversion. During onboarding, customers would like to easily find, access and use the tools or features necessary for their verification. As you reduce the number of clicks, the number of pages or stages needed to be navigated should also be minimized to prevent sign up fatigue.
4). Provide assistance: When a user is unable to complete an ID verification process, it is important to provide a helpful explanation why, and subsequently provide assistance for when they try again. Lack of feedback may discourage the user from attempting the process a second time. For example, Linus, a Passbase client, provides a breadcrumb when users are onboarding. Components on the dashboard direct you on necessary steps, and with a link to complete identity verification. Their chat system also detects when a customer is sitting on a page for longer than a specific amount of time and prompts them with a message. If the user’s identity verification is rejected, they also have a response team that offers speedy assistance, in real time. You can implement this use of on-app or email prompts and breadcrumbs, to help improve the user’s experience.
5). Create an interesting waiting time: While a user waits for the next stage of their verification process or the approval of their documents, you could offer them visual interest or the ability to explore certain features and pages of your website. This helps keep them engaged and could also reduce abandonment.
Conclusion
A good KYC process offers you an opportunity to know your customers better and improve your relationship with them. For product managers, compliance managers and developers, a seamless customer onboarding experience allows you to focus on your company’s core product. Identity verification should indeed meet AML regulations and security protocols but also be made interesting for the users being verified.
Partnering with identity verification providers like Passbase can ensure that organizations maintain a balance in terms of security and fraud prevention, while providing good user experience for customers. Passbase provides a convenient way for businesses to perform KYC and AML checks through identity verification. You can integrate Passbase into your platform via the Passbase API or with SDKs for iOS, Android, and web. To see how identity verification can work for your business today, book a demo.