As long as there’s been money, there’s been banking innovation. From the abacus to the ATM, fintechs represent the latest banking technology to emerge to meet new demands. And as younger generations’ skepticism of traditional financial institutions persists, the fintech market is in a prime position to support these cultural and behavioral shifts by transforming how people save, borrow, invest, and more.
Fintech offerings are especially attractive to digitally native Gen Z and millennial consumers. But along with their business, these internet- and mobile-savvy generations bring immense expectations around their technology experience. Customer-friendly identity verification at onboarding is a tremendous growth-enabler for today’s hyper-charged fintechs—and a key competitive differentiator for your customers, who expect seamless, instant digital onboarding.
Letting in the Goods While Keeping out the Bads
Many of today’s consumers have almost zero patience for friction—even if that friction used to be considered the norm in the physical world. For fintechs’ identity verification and fraud prevention strategies, this means that any minor performance delay, extra clicks, or manual reviews can be the difference between gaining or losing a good customer.
A seamless approach to identity verification at onboarding is more than a nice-to-have. It’s a key component of scalable growth. The equation is simple, even as the challenge is difficult: a frictionless identity verification experience leads to more onboarded customers, which leads to more revenue.
But as fintechs improve the customer approval process, that doesn’t mean compromising on fraudster defense. Meeting customers’ expectations for a seamless UX is a significant double-edged sword. Or perhaps, a double open door is a better metaphor: How do you open the door to good customers without having it swing open equally in the opposite direction?
Purpose-Built for Fintechs and Their Customers
Fintechs that choose Socure as their identity verification and fraud solution don’t need to trade more risk for more business. In fact, Socure’s customers have seen an average of 30-60% increase in auto-approvals, achieving overall rates of up to 97%, as well as a 10x improvement in false positive fraud reduction. They’ve also seen up to 85% reductions in fraud across all ages and demographics, with up to 400% reductions in fraud for the riskiest populations. Best of all, they achieve these fraud prevention results without increasing unnecessary friction or manual tasks for internal teams.
Legacy identity and fraud verification systems rely on credit data—which often leads to false rejections or friction for many legitimate Gen Z, new-to-country, and other credit-invisible and hard-to-identify consumers. Socure applies in-depth data science, analytics, and proven machine learning models to hundreds of online and offline data sources. Then we analyze the entire lifecycle of a consumer’s identity, from origination through every subsequent transaction, while also looking at all dimensions of risk related to the identity and transaction: name, email, phone, address, date of birth, Social Security number, geolocation, device, velocity, behavioral, transaction information, merchant details, historical purchase behavior, and network intelligence.
Socure’s 360-degree view gives customers the most instantaneous onboarding possible, solving for both false positives and false negatives in milliseconds. The result is seamless onboarding for a seamlessly scalable prospect-to-customer conversion. Legacy vendors—with an approach focused on only new account risk or individual pieces of an identity, such as email, phone, address, and device—simply can’t match Socure’s speed or accuracy.
Just as today’s digital-savvy customers expect more from their banking, you should expect more from your identity verification and fraud platform. When you choose the Socure solution, you’ll open those auto-acceptance possibilities wide without inadvertently letting the fraudsters and other bad actors sneak in behind the good customers. Schedule a call with our fintech experts to see how you can optimize your customer onboarding while minimizing risk today.
Anthony is VP and Head of Product Marketing at Socure. Previously, he was at Raise, the world's largest marketplace for retail currency. Prior to that, Anthony was a co-founder at Slide, a gift card wallet app on iOS and Android, that was acquired by Raise in 2016. Before becoming an entrepreneur, Anthony worked in business and product development at American Express.
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