Globally, facial recognition is increasingly common during onboarding across financial services, insurance and telcos. As part of a friction-right journey, alongside other identity verification solutions, it can help accelerate the application process, deter fraudsters and support brand positioning efforts. However, requiring a static image or video can also present an arduous task for reluctant consumers. Any obstacle in a poorly designed onboarding flow could lead to conversion attrition, increased fraud risks and an impaired experience. But, there are approaches to help you effectively overcome these challenges.
Independent research showed 85% of global executives believed biometrics would authenticate most payments in the next 10 years1. A TransUnion survey found most Canadian consumers actually support advanced identity verification in their financial services relationships2. When asked in which scenarios they’d like to use advanced identity verification (such as facial recognition or onetime passcodes), consumers relayed:
TransUnion research indicates 3 one in three consumers globally plan to apply for new or refinance existing credit within the next year. That means competition will be fierce, so optimizing the onboarding flow will be critical for lenders. As more consumers increase pressure on businesses to deliver outstanding online experiences with built-in, friction-right security protocols, biometric solutions could offer new ways to secure and speed up processes — but there are caveats.
Businesses need to thoroughly investigate the potential of biometric solutions to produce a hybrid approach to identity verification while supporting CX and compliance goals. For example, whereas facial verification can reduce the trade-off between streamlining and security, it must also be inclusive, make onboarding measurably more convenient, and help detect and deter fraud in line with robust security and compliance specifications. A variety of aspects should be considered when developing a plan most appropriate to your business’s (and customers’) needs.
As the adoption of biometrics increases worldwide, Canadian businesses must explore solutions that promote friction-right onboarding to exceed customer expectations and support commercial objectives — but these may not always be biometric solutions. The right data-based technology working in tandem with enhanced solutions can help quickly and securely corroborate identities. Document verification is one example of how layered identity verification solutions can shorten the process of validating consumer-provided identity documents against trusted data sources.
While TransUnion Canada does not currently offer biometric products, our innovative data solutions and enhanced analytics can help businesses reduce identity fraud risks while providing a convenient, digital customer experience. Contact TransUnion today to learn more.
1 New Dimensions of Change: Building trust in a digital consumer landscape, The Economist Intelligence Unit Limited, 2020
2,3 TransUnion Consumer Pulse.