FIGURE 2: GOOGLE TRENDS: IPHONE FACIAL RECOGNITION WITH MASK
Facial recognition is increasingly common during onboarding flows across financial services, insurance and telco. Deployed in a friction-right journey, alongside other identity verification solutions, it can help accelerate the application process, deter fraudsters and support brand positioning efforts. However, whilst we’re living in the age of the selfie, asking consumers to capture themselves (static image or video) is high effort. The wrong solution (used in a poorly designed onboarding experience) could lead to conversion attrition and increased fraud risks, and put a drag on overall performance.
Putting the use case for biometric solutions under the spotlight
Research in 2020 pointed to the influential role biometrics (fingerprint, facial or voice recognition) would have, with 85% of executives believing they’d be used to authenticate the majority of payments in the next 10 years.1
From the consumer’s perspective, TransUnion research found the majority are in favour of advanced identity verification, such as one-time passcodes or facial recognition, in their financial services relationships (Table 1). The implication is that consumers increasingly expect businesses to bake in robust security checks into aspirational and intuitive customer experiences (CX). An additional benefit of embedding these solutions into onboarding flows is they can act as a deterrent to fraudsters, moving them away from your ecosystem before they do damage.
In which situations would you want to be asked for advanced identity verification, such as facial recognition or one-time passcodes delivered via email or text? (Select all that apply)
Applying for a financial product online
Creating an online account at a financial services company
Logging in to an existing online account at a financial services company
Changing account information at a financial services company
None of the above
With the pandemic moving more consumers online and putting pressure on businesses to deliver outstanding digital onboarding experiences, it’s clear in the 2020s, the biometric evolution will offer new ways to secure and accelerate processes.
Achieving the best outcomes from biometric solutions
With competition fierce — TransUnion research indicates one in three consumers globally are planning to apply for new credit or refinance existing credit (e.g., mortgage, auto loan/lease, credit card, personal loan, student loan) within the next year — optimizing the onboarding flow is a top priority. Businesses need to fully interrogate biometric solutions and their potential to complement a hybrid approach to identity verification while supporting overarching CX and compliance goals.
For example, facial verification can reduce the trade-off between fraud and security, and support efforts to look and feel like a leading technology brand. It’s crucial, however, that a facial recognition solution:
- Makes onboarding convenient and doesn’t create too much friction
- Is inclusive
- Prevents fraud — deterring fraudsters and more accurately detecting fraud by being built to robust security and compliance specifications
The right technology working with other solutions can help successfully corroborate identity. Document verification is a great example of how layered identity verification solutions can shorten the application process. By more securely, quickly and accurately validating consumer-provided identity documents against trusted data sources, you can reduce identity fraud risks while offering a convenient, digital customer experience.
As adoption of biometrics increases, it’s crucial businesses explore available options, and ensure integration into the onboarding flow matches or exceeds customer expectations and supports commercial objectives. Don’t get left behind — a proactive approach now can better position your business to keep pace with this evolving technology… that seems to be here to stay.
Make streamlined experiences and happy customers a reality
Do you want to unlock the potential your onboarding flow and make your first impression count? We help businesses transform their onboarding flow through innovative data solutions and analytics. Work with us to realize your customer experience ambitions, improve fraud capture rates, and discover new ways to drive improvements that benefit teams across your business.
To learn more about the benefits of optimizing your customer onboarding experience, download our new insight guide, Digital Onboarding: A Guide to Unlocking Growth.
1 New Dimensions of Change: Building trust in a digital consumer landscape, The Economist Intelligence Unit Limited, 2020