Financial institutions are increasingly doing business online — whether that entails opening a new checking account or originating a $10,000 line of credit — and accordingly, they’re unable to rely on the type of identity verification that’s possible when face to face with a customer.
Complicating matters further in this competitive space are customers who demand quick and easy online interactions. This drives financial institutions to try to create ever-smoother digital onboarding experiences — making the balance between consumer friction and fraud detection even more difficult to master.
The digital identity verification methods of yesterday, that rely on static identity elements vulnerable to compromise, are no longer good enough in the age of synthetic identity fraud — in which bad actors create false digital identities using legitimate, but stolen, identity elements. Meanwhile, today’s customers demand immediate gratification from all digital interactions, including with their financial institutions. If they can’t open a new account within minutes, these customers won’t hesitate to apply for an account with another financial provider.