Trading and brokerage firms must embrace identity verification (IDV) tools to combat the threat from fraud and other forms of crime. IDV might seem like an onerous extra process step for customers, but the right approach can actually improve the onboarding experience.
Onboarding is a crucial process for trading and brokerage firms, enabling you to introduce new customers to your platform and giving them their first taste of your service. However, it brings with it some well-known challenges.
The right IDV should deploy an AI-powered approach, making it quick, simple and safe for customers to join your platform, while reducing the potential for fraud, money laundering and other crimes. This has clear benefits from a security perspective.
However, it also addresses some broader challenges in the onboarding process:
If you choose the wrong IDV solution, it could quickly grow into one of your problems, not a solution. For example, you may rely on a manual approach, using human analysts alone. That could take days – even weeks - to verify new users. In the meantime, your potential customer could well have taken their business elsewhere.
At Veriff, we offer a hybrid approach to IDV, combining manual validation (with a selfie) and AI algorithms. With this approach, you can make the onboarding process relatively painless, while keeping bad actors at bay.
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