A while ago, security was something businesses took care of behind the scenes. Customers were not paying attention unless something happened.
Nowadays, however, the story is different. Data breaches, account takeovers, and identity theft sometimes dominate headlines, which makes consumers more cautious.
Businesses have to rethink their security approach. Rather than working in the background, they are turning it into a competitive advantage. Identity verification tools were treated as compliance obligations, but now such tools are being used to attract and reassure customers.
The Shifting Role of Security
Looking back at the early days, companies wanted onboarding and transactions to be smooth. It required robust checks. Now, though, customers are proactive in wanting to know how they are protected.
Research is not necessary to determine that data breaches and other security holes erode consumer loyalty. If anything, a simple security breach is enough for customers to abandon a brand.
Why Identity Verification Matters
Identity verification confirms that a person is actually who they claim to be. Modern identity verification platforms like iDenfy, Veriff, or Onfido have sophisticated ways to sort out real people from fake actors.
- Biometrics like facial recognition or fingerprints.
- Two-factor authentication and multi-factor authentication.
- Document verification to check government-issued IDs and other documents.
- Behavior analysis that detects patterns in purchases, logins, and other behavior.
Finance, e-commerce, healthcare, and travel are industries that stand out in leading the adoption of identity verification solutions. It’s ultimately not just about verifying identity and staying compliant. It’s also about safeguarding trust at every interaction.
Security as a Selling Point
The trend of businesses being upfront about security is a welcome change. Banks advertise biometric login as a feature, whereas online marketplaces promote secure onboarding to protect consumer data.
Consumers see these safety nets and feel secure, knowing they can trust an enterprise. In a way, it works a bit like a restaurant that displays a hygiene grade as a trust badge.
Benefits Beyond Risk Reduction
If a business still has doubts about investing in identity verification solutions, it should consider the other advantages these solutions offer.
- Investor and partner confidence. Companies that are proactive about security are bound to attract interest from investors and raise confidence among current partners.
- Improved customer experience: Security solutions minimize friction, streamlining the onboarding process by eliminating endless forms.
- Fraud reduction: Revenue is protected directly thanks to fewer chargebacks and account takeovers.
- Regulatory compliance: These security tools also help with KYC, AML, GDPR, and other regulatory compliance.
Challenges to Overcome
As expected, there are still some hurdles enterprises have to overcome. Smaller or even mid-sized organizations may find the implementation of advanced identity verification costly.
Another challenge is finding a fine line between adding protection and creating too much friction. A clunky system that makes customers unhappy will backfire.
Lastly, there’s the issue of fraud tactics evolving all the time. Security solutions are the ones reacting to emerging threats. Keeping up with the changes requires continuous upgrades to identity verification systems.
The Future and Its Trends
It shouldn’t come as a surprise that a new wave of identity verification is already taking shape and should be here soon.
First and foremost, stricter regulations will make robust identity checks an obvious expectation, which will benefit consumers.
AI-driven fraud detection should come in handy in spotting sophisticated attacks in real-time. Decentralized identity systems will enable users to control digital credentials.
There’s also more talk of government-issued eIDs to streamline verification not just locally, but also globally.
Over time, identity verification should evolve into a universal trust layer for digital commerce. Similar to how HTTPS has become the standard for secure web browsing. And the sooner that day comes, the better.
Conclusion
To sum everything up, the business case for identity verification has evolved. Forget about just meeting compliance requirements or minimizing losses from fraud.
Ensuring that an identity verification system is in place means more trust and safety for the consumers. It also signals a differentiating approach in competitive markets.
As soon as a business makes security visible, it transforms it from a hidden cost into a selling point. Those who invest in the idea and show it proudly are bound to benefit from safer transactions and stronger customer loyalty, as well as long-term growth.
