Enhancing success with KYC: Top 3 ways to improve business outcomes
The competitive business landscape demands smooth, seamless remote transactions. At the same time, volume and sophistication of fraud around remote, online transactions has increased. A well-thought-out KYC solution will drive improvement in consumer experiences, help decrease fraud, and support meeting your compliance obligations. 1. Improved customer experiences In many cases, the onboarding process is the first experience a consumer has with an online business. A poor experience can negatively impact the brand. By ensuring that customer data is quickly and accurately verified, KYC solutions streamline the onboarding process, reducing barriers to entry for new customers and leading to quicker conversions. Pre-filling application forms with verified identity data reduces consumer friction and increases conversion rates, and a smooth, hassle-free experience is vital for keeping customer interest and satisfaction high from the initial interaction. Additionally, a secure and robust KYC process reassures customers, fostering a sense of safety and trust when purchasing. This enhanced trust translates into higher conversion rates and increased customer loyalty, as customers are more likely to return to a platform that they perceive as secure and reliable. Customers expect a secure environment, especially in an era where data breaches and identity theft are rampant. Competent KYC practices encourage not only repeat business but also boosts brand reputation through positive word-of-mouth. 2. Reduced risk of fraud KYC plays a pivotal role in identifying and mitigating potential fraud, especially during high sales periods such as holiday seasons or sales events. Implementing right-sized KYC processes means a business can more accurately verify the identity of their customers and reduce the incidence of fraudulent transactions. This is crucial for maintaining the integrity of the sales process and safeguarding the business’s reputation and financial health. IDI’s coreIDENTITY solution delivers powerful tools to help with fraud mitigation, including: Companies employing rigorous KYC solutions may notice a significant reduction in fraud and chargeback rates. This is directly tied to the ability of KYC processes to filter out deceptive transactions before they can culminate in financial loss or disputes, thereby protecting the company’s bottom line and enhancing operational efficiency. 3. Improved business metrics A recent study by Juniper Research shows a marked increase in the percentage of businesses implementing KYC solutions and predicts continued growth through 2028.1 The strong adoption of these solutions underlines the confidence that industries have in their positive downstream impact on conversion rates. Additionally, businesses that ensure accurate customer verification have reported higher lifetime value from each customer. This is because KYC aids in building a more seamless customer relationship, encouraging repeat business and fostering loyalty. Incorporating KYC solutions into your business operations is not just about compliance; it’s about leveraging consumer data to understand your customers better, reduce risks, and enhance overall customer satisfaction. Businesses that recognize and harness the power of effective KYC are those that stand out in today’s competitive market, achieving greater sales and building a loyal customer base. In essence, robust KYC practices are not just beneficial—they are essential for a successful, sustainable business. Learn more about the trusted identity insights available from coreIDENTITY.