5 advantages of a digital identity wallet
Photo by Firmbee.com on Unsplash
With data security and fraud prevention such important topics for individuals, institutions and corporations working in all manner of regulated industries, it’s imperative that you implement robust protocols on your website. For many industries, like financials services, crypto or gambling this includes complying with all the latest Know Your Customer (KYC) and anti-money laundering (AML) legislation at both national and international levels.
Fortunately, help is at hand. By incorporating a digital ID wallet into your website, you can streamline the customer onboarding process, grant your consumers instant access to your products and services and furnish them with the ability to create electronic (and legally binding) signatures faster than ever before. Here’s a deeper delve into the reasons why digital identity wallets are the most convenient form of verification and authentication of tomorrow, today.
Effortless onboarding
Instead of requiring your users to upload multiple documents or undergo onerous verifications over and over, you can sidestep all of that hassle by leveraging their existing identities from other services, stored in the identity wallet. By allowing them to choose authentication processes that they are familiar with and already favor – such as biometrics, for example – you can make the whole process as smooth and stress-free as possible.
Improved conversion rates
Did you know that websites which offer financial services suffer from the highest abandonment rates (83%) during the onboarding process? While businesses operating in other industries might not be so negatively affected, it’s inevitable that any friction experienced while attempting to onboard is going to discourage consumers from choosing you over your competitors. As such, deploying a digital identity wallet to streamline ID verification can boost your conversion rates.
Legal compliance
Depending on the country in which you operate, the rules and regulations surrounding data security, KYC and AML can differ – but the penalties incurred by falling afoul of them are invariably high. Indeed, the highest-profile cases have seen fines climb into the billions! While your company isn’t likely to suffer the same extortionate fate, it can ill-afford any unnecessary expenses. A digital ID wallet will preclude that possibility entirely be keeping you compliant.
Cost-effectiveness
Because there are fewer hurdles to overcome in the onboarding process, there are reduced overheads incurred on the way. Utilizing a digital identity wallet means you will only ever need to verify a customer’s credentials once – and if you rely on pre-existing verifications, you don’t even need to bother with it all. This keeps your costs at a minimum and makes your balance sheet leaner, which is conducive to maximizing those profit margins.
Integration and compatibility
Digital ID wallets have been specifically designed to work with other third-party apps, platforms and services. This ensures seamless integration across your entire operation, as well as allowing you access to a digital identity ecosystem which can significantly enrich the data at your disposal. All of this adds up to heightened capabilities, better services and happier customers as a result.
Although still a relatively novel tool, digital identity wallets look set to dominate the future of ID verification, identity proofing and even authentication in the years ahead. Stay one step in front of your competitors by leveraging the awesome advantages of this technology now.
