In today’s fiercely competitive market, personalization has become the key to customer satisfaction. With pioneers like Amazon and Netflix paving the way, customers now expect and want customized experiences. Businesses now have the power to delight their customers through personalization technologies that provide a significant boost in customer loyalty. Take Spotify, for example, which creates custom playlists for its users based on their favorite songs. A recent survey from Epsilon and GBH Insights revealed that a whopping 80% of consumers crave personalization from retailers.
Certain sectors have been slower in adapting to changes than others. Financial service providers have lagged in providing personalized experiences. Numerous enterprises are currently in the process of transitioning to digital platforms to deliver their products and services.
Most people who are open to or actively looking to change their bank would consider doing their banking with a tech business like Amazon, Facebook, or Google, according to the Boston Consulting Group, if the option were presented.
As the banking sector changes to meet consumer demand for more personalized customer experiences, more entry points for fraudsters to exploit the system become available. Identity verification then becomes relevant as a key element in safeguarding the safety of both customers and businesses.
Fast-changing digital consumer dynamics, stronger compliance regulations, and a level of criminal inventiveness not seen in other industries are all exerting significant pressure on banks and credit unions. Consumer demand for intriguing, personalized experiences is another issue.
Financial service providers can gain ground and establish themselves as strong competitors in the personalized experience market by implementing cutting-edge identity verification technologies that interact with current systems.
Fintech identity verification should be approached more strategically as one piece of a broader, interconnected puzzle that includes frictionless onboarding, fraud deterrence, and regulation. This will help institutions deliver personalization, optimize benefits, and create competitive differentiation.
What Exactly Does a Personalized Banking Experience Look Like?
Traditional marketing approaches used by banks included direct mail campaigns to attract specific customers. However, the integration of data from various customer engagement channels, transaction touchpoints, and account profiles is what allows banking institutions to personalize their services to meet the unique needs of each customer. This approach enables the creation of customized, meaningful experiences that drive customer satisfaction and loyalty.
Achieving a harmonious equilibrium between safeguarding your business against potential security threats and providing uninterrupted digital banking experiences for customers to carry out their objectives is critical to delivering customized banking services to customers of financial institutions.
In this scenario, the utilization of identity verification and biometrics proves beneficial. Employed correctly, they can become an asset for companies striving to provide superior customer service. These technologies empower customers to customize financial products and services to cater to their unique requirements, thus allowing them to take authority over their online interactions.
Utilizing Biometrics and Identity Verification for Personalized Experiences
Organizations have access to a versatile and multifunctional toolset through identity verification and biometrics that allows them to tailor the identity check experience based on the nature of the transaction and the amount of risk involved.
Higher levels of identity verification are used, for instance, when a transaction involves the transfer of a significant amount of money versus when a customer makes a low-risk transaction, such as changing their contact information in their account profile. Identity checks are conducted in a targeted manner in accordance with the risk level.
To effectively control fraud and risk connected with banking features, identity verification and biometric technologies should be incorporated. Through targeted, efficient, and seamless identity verification based on the risk posed by the customer or the transaction they’re trying to complete, this can improve synthetic identity fraud detection and prevention, the automation of previously manual identity verification workflows, and the client experience. When it comes to trade-offs between user experience and the cost of fraud, identity verification shifts the efficient frontier, allowing us to invest more in growth.
Every Individual Benefits from Personalized Experiences
Of course, there’s nothing more satisfying than getting a fresh array of recommended films delivered by Netflix that were curated with your taste in mind—whether those be nature documentaries or 1980s comedies.
…and financial institutions and their customers can most certainly experience great satisfaction as well.
Consumers gain from this new kind of digital experience, but financial service providers also gain access to a wealth of anonymized customer data that can be used to boost operational effectiveness, offer insight into opportunities for future product and service development, and assist teams in making more data-driven business decisions.
Consumers have a plethora of financial service options at their disposal. Fortunately, the onboarding process has witnessed significant improvement with the advent of pioneering, digital-first competitors who’ve shaken the market. Businesses can now enhance their competitive edge and experience customer retention and attraction by implementing identity verification and biometric technologies within their digital experience.
With our age verification system, your business can be confident in the security of its operations. Our solution assures you that your customer data is well protected. Let us help you ensure that your business is in safe and responsible hands today by setting you up with a consultation and giving you the chance to experience a demo to learn the ropes of FTx Identity.