Capturing the Millennial Market with Identity Verification
August 27, 2020
From a business perspective, capturing millennial business and future tech-focused generations is vital. At least 54% of their purchases are online and they exercise significant purchasing power: there are roughly 80 million Millennials in the U.S. and in 2020 are expected to represent 30% of total retail sales spending $1.4 trillion annually.
With the digital shift that we see in everything from banking to grocery shopping, businesses that embrace online channels need to feel confident that their customers are truly who they say they are – how do they manage increasingly sophisticated fraud and appropriately address their level of risk?
Identity verification technology can provide a simple answer to gain trust and loyalty. The question is what solution is right for your business that has the right balance of security, meeting compliance needs and providing a good user experience. The wrong balance can mean being targeted by fraudsters, being subject to regulatory fines or losing customers.
What Does Not Work
KBA (knowledge-based authentication) and passwords are ineffective and outdated on their own. With KBA, having to answer personal questions about one’s pet, place of birth or previous addresses is not only cumbersome but also not secure. Much of this information is available in public records or on the dark web for easy access for fraudsters. Passwords are also very easy to hack and leave business and consumers very vulnerable. Gartner predicts that by 2022, 60% of large businesses and almost all medium-sized companies will have cut their dependence on passwords by half.
We also know that Millennials are hyper focused on experiences. They want to have a high tech and streamlined process that caters to their on demand, digital lifestyle. Neither of the above do that which is why Apple has had much success with fingerprint and facial recognition technology to unlock phones and replace older verification methods. And we are seeing this trend of adopting biometrics everywhere. Add to this that millennials want to feel valued as customers and recognized (don’t we all?), and it becomes clear that too many verification steps can be a deterrent. While the goal is to deter fraudsters, businesses still need to be able to show trusted users that you recognize them, value them and show them the fast lane.
A Simple Solution
Depending on your level of risk and compliance regulations you must meet (age verification, KYC/AML, GDPR, etc.), you will always need to verify and trust who is on the other end of a transaction to some degree. This often requires customers to submit some form of identity verification. Efficient and tech savvy onboarding processes will have less abandonment. How can this be both simple and secure?
Acuant’s AI powered Trusted Identity Platform provides robust and user friendly identity verification based on your level of risk. We do this by establishing a trust anchor via authenticating an ID or using facial recognition match (among other ways) and can provide secure multi-factor verification in seconds. It can be as simple as snapping a photo of your ID then taking a selfie. Our solutions are omnichannel and allow cross-device methods when you need to go from desktop to mobile so that consumers are free to transact when, how and where they wish.
Acuant Verify and Acuant Compliance automated solutions reduce the steps customers have to take. Data gathered from IDs auto populates fields and companies can store images and data in one step. While we make it easy for business to collect data, Acuant is privacy minded and encrypts all workflows to and from the cloud never storing PII (personal identifying information) data or images. And we integrate right into your existing workflows to get you up and running quickly.
Contact us to learn how we enable you to verify customers in seconds with a high degree of accuracy, while ensuring that the customer experience is a good one.