The banking industry faces the most challenging identity verification conditions of any industry. KYC, KYB, and AML have significant fines for non-compliance, as well as reputational risks. Banks bear substantial competition from other financial institutions and emerging fintechs, whose new approaches lead to rapidly evolving user expectations around streamlining the onboarding process.
Consumers also want to trust their banks, need to feel a genuine sense of security, and need to be regularly engaged with their customer journey. Then there is the ever-present threat of new account fraud that can cause massive financial losses, require high levels of resourcing to manage, and cause a significant risk to the brand.
This spotlight examines the banking industry's unique challenges around digital identity verification and our outlook for the sector's future.
Key learnings from this spotlight include:
- Why diverse, transparent data is central for effective digital identity verification.
- How identity verification solves for pain points specific to the banking sector.
- Why a multi-layered approach to identity verification is critical for financial institutions.
- How identity verification impacts a consumer's preference for financial institutions.