As a modern business, online customers are more valuable to you than offline customers. That is why it is so important that you have a smooth process to help existing offline customers and new online customers join your online platform or app. But the online sphere also poses a number of threats, both to your business (e.g. new types of fraud, technical challenges) and to the customer (data breaches, phishing, etc.). To protect your customers and your business against identity fraud, you need to reliably verify the identity of the person signing up. This can be done in various ways. In the past, companies often sent letters with personalized codes to the customer’s home address. However, this took an average of 7 business days and cost a whopping €2 per letter. With large customer bases, these costs can rack up! Not to mention that the conversion rates for this method are very low: less than 30% of these letters actually result in successful onboarding of the customer. As you can imagine, some customers then ended up calling the contact center for assistance with their online account, driving up the cost of onboarding even further.
Another way to verify identity is by asking people to send you a scanned copy or picture of their passport or ID card. This is not only an obstacle for the customer, but also presents privacy-related issues. For example, under the GDPR in the EU companies can only store personal data if they can justify why they need this information. Physical identity documents typically include much more information than you can justifiably store in the eyes of the law.
Since this problem is shared by many different parties in both the public and the private sector, various solutions have also been introduced. Some examples of digital identity solutions include:
Due to the nature of their business, most digital identity solutions are geographically limited. As each solution has its own unique technological requirements, this can present a challenge for businesses with international operations. Onegini’s CIAM solution Onegini Connect offers plug-and-play integrations with various onboarding services in a range of countries, giving you the chance to offer the same level of security and identity verification across borders.
Onegini has extensive experience creating effective onboarding processes, and we love to share our insights with our clients. Using data analytics, journey configuration, and onboarding learning, our dedicated team can help you make sure your customers get onboarded without a hitch. Want to find out more? Get in touch today. We’d be happy to discuss how we can help you achieve your onboarding goals.