The online economy is rapidly creating new consumer options and business opportunities. Unfortunately, these same systems are also enabling fraudsters and cybercriminals just as quickly. Organizations need to ensure their remote identity verification processes can effectively distinguish between good consumers and bad actors — and protect all the valuable personal information that consumers give them.
The costs of security and privacy are considerable. According to Aite Group, losses from identity theft cases rose 42% in 2020 to $712.4 billion in the U.S. alone. Various cybercrimes are estimated to cost $6 trillion in 2021. And privacy laws like GDPR and CCPA have increased compliance and operational costs for organizations.
However, those organizations that strategically invest in their onboarding processes can control costs, maximize customer acquisition and position themselves to adapt to new market, technology and risk-prevention opportunities quickly. As Trulioo COO, Zac Cohen, states:
Forward-thinking businesses are looking to data to help drive more strategic decision-making around identity verification. The shift in recent years — which has been accelerated by the pandemic — has been away from approaching identity verification as a tactical compliance exercise towards making it a core strategic driver of customer and business value.
Identity verification has become a critical factor for organizations in all sectors, from those moving to digital for the first time, through firmly established online brands.
Identity verification investment considerations
Trulioo research has shown that within financial services, as many as 70% of organizations are now taking a proactive approach to identity verification, driven by a desire to be best-in-class, build trust, enhance customer experience and drive competitive advantage.
But how are businesses assessing the effectiveness or returns of their investments in identity services and technology? What are the Customer Due Diligence KPIs and key metrics that they are monitoring? Perhaps most crucially, how does measurement within customer identification and verification need to evolve to justify and enhance its new strategic importance?
Of course, every organization is different, with unique cost structures, economic valuations and goals. Trulioo has worked with numerous companies in all regions, industries and use-cases to develop a framework to maximize return on investment in identity verification.
The Maximizing ROI in IDV Playbook provides five main steps to guide your organization in developing best practices for your identity verification processes:
- Define your goals
Understand the parameters in which the business is operating to develop a complete understanding of identity verification requirements.
- Define what success looks like
Develop a holistic and robust framework for measuring the success of identity verification processes and investments.
- Apply the right tools
Engage the best tools available. Ones that suit your requirements and that can be connected together to create a dynamic verification process to mitigate fraud and compliance risks and remove friction.
- Focus on optimization
Ensure your identity verification program is optimized for performance at every stage of the customer journey.
- Implement tiering
Tiering is a waterfall approach to identity verification that allows businesses to always use the best source to verify identity based on each individual case. It allows for dynamic routing, which drives performance, eliminates fraud and improves the customer experience.
Identity verification is mission-critical for trust and privacy
The Playbook draws on our extensive industry experience and outlines what businesses need to consider and what steps need to be taken to implement an effective, strategic and cost-effective identity verification program. It provides 55 questions to consider when developing strategies for global growth and changing regulations and technologies. Based on our comprehensive data, expertise and insights, we will also share with you the tools and technologies that Trulioo uses to ensure our customers have the best identity verification processes in place for their needs. To help organizations begin thinking strategically about identity verification, we’ve created the following infographic.