The pandemic is speeding up the process of digitalisation, with consumers increasingly worried about visiting the high street in the current climate, while recognising the convenience of shopping online. This requires brands to improve engagement with their customers across all digital channels.
Importantly, there’s an urgent need for marketers to not only put in place procedures to deliver a fast and efficient purchasing journey online, but ensure that they are dealing with the customer they think they are, particularly when it comes to the sale of high value goods. This is vital with research highlighting that ecommerce merchants are set to lose in excess of $25 billion to online fraud by 2024, up from $17 billion in 2020.
At the same time global regulations, while proliferating in more heavily regulated sectors, such as financial services, are starting to have an impact across other industries.
Therefore, brands need to not only optimise the digital journey for customers, but increasingly verify online customers’ identities in real time. This necessitates embracing electronic identity verification (eIDV).
eIDV critical for speedy, secure real time purchases
The answer for effective eIDV involves gathering all relevant consumer information online and running cross-checks against the data they have provided in real time. This means matching someone’s name, address, email or phone number against reputable data streams, like government agency, credit agency and utility records. It’s vital all the information matches up properly; for example, the name matches the address in public documents. As well as preventing fraud by ensuring data accuracy this process also enriches the data – fills in any gaps – to help deliver a 360-degree customer view.
To do this effectively you need access to billions of global records in real time to ensure the customer experience isn’t compromised.
Artificial intelligence (AI) and eIDV
One standout form of AI, semantic technology — which has already proven its worth in the healthcare and pharmaceutical industries — is set to play an important role across other industry sectors. Semantic technology, or semtech, associates words with meanings and recognises the relationships between them. This makes it possible to apply context and make inferences with data, ensuring properly validated identities as well as broader data quality and integrity.
One of the most important parts of semtech is the machine reasoning and automated pattern recognition it provides, in real time, to identify possible fraudulent purchases. This means as part of the eIDV process semtech can support a more seamless buying experience, helping to deliver a clear competitive advantage.
Time for eIDV
With transactions increasingly online the cost of embedding eIDV solutions into your platform is tiny compared to the risk associated with fraud. Also, not fully embracing eIDV could possibly lead to losing customers to your competitors who are using a faster or more secure technological solution that you perhaps haven’t chosen just yet.
The pandemic has underlined the need for quicker, slicker and more effective digital identity verification solutions. Those brands with the best chance of making it through the pandemic will be the ones that put eIDV services at the heart of their business, and also look ahead at what AI can bring to further improve eIDV.