For unsecured lenders, the need to deliver an optimized customer experience must work alongside the demand to achieve compliance. How can your unsecured lending business prioritize customer experience and security at the same time?

Identity verification: The core of an innovative online security strategy

For unsecured lenders, the requirement to achieve compliance and the need to provide a seamless consumer experience must coexist. Discover how identity verification can help your business to accomplish both.

Customer Onboarding: Quick, Secure, and Profitable | Veriff.com

If you’re in charge of customer onboarding at your unsecured lending business, then your priorities are clear. Simply put, you want an effective and quick process for new customers, low levels of customer churn and drop-outs, and the best possible customer service that makes people feel welcome and valued.

You know the market is competitive, and that customers often have a broad range of choices, so your baseline priority is to encourage them to pick you. Of course, central to this is the perceived value of your deals, the rate and the terms. But another key aspect is the process of dealing with applications.

You want an effective and quick process for new customers, low levels of customer churn and drop-outs, and the best possible customer service that makes people feel welcome and valued.

Applications must be quick, reassuring and secure, otherwise potential customers will head straight to your competitors. They want enough information to feel informed, but not so much that they feel overwhelmed. They appreciate a solid security procedure, but not one that’s onerous and creates needless friction. Plus, they appreciate an interface that’s clear, attractive and speaks to a quality product.

It's perhaps not surprising, then, that 94% of companies see a powerful onboarding strategy as the primary responsibility of the onboarding team, according to a 2023 report by Rocketlane. Meanwhile, in the same study, 78% saw shortening the time-to-value ratio as a vital route to improving experiences.  

For unsecured lenders, perhaps as much as any other business vertical, the need to deliver brilliant customer experiences must work in tandem with the requirement to bolster security and comply with a growing set of international regulations, including Know Your Customer (KYC) and those targeting money laundering (AML).

Customers want quick access to approvals, while the regulators (and businesses) want to guard against criminality, particularly fraud. 

Sadly, financial crimes are on the rise, driven by digital communications technology, which allows people to carry out thefts and frauds remotely, from anywhere in the world. In the unsecured lending space, a famous example was the estimated £5bn loss suffered by the UK government through its ‘Bounceback’ loan scheme set up to help businesses financially during the Covid pandemic. 

Popular crimes include synthetic ID theft, in which data sets are acquired and used to take out loans. Or online accounts fraud, where passwords are hacked, personal details changed and money taken out.

Identity verification tools are a great – and often mandatory – way to combat such challenges. But the process of ensuring a person is who they say they are risks harming conversions, unless it is intuitive, easy and quick.

If your business is looking for an IDV solution, then take your time finding the right tool for you. It should, for example, be able to verify a broad range of government approved documents, ensure the loan applicant is real and that they are the person who is making the application.

It should also fit seamlessly into your onboarding process, reduce friction and optimize time-to-value, while providing enough support to ensure new customers feel like they are being taken care of.

A 98% check automation rate gets customers through in about 6 seconds.

Fast decisions

Real-time end user feedback and fewer steps gets 95% of users through on the first try.

Simple experience

An unmatched 10K+, and growing, government-issued IDs are covered.

Document coverage

Up to 30% more customer conversions with superior accuracy and user experience.

More conversions

Veriff’s data-driven fraud detection is consistent, auditable, and reliably detects fraudulent forms of identification.

Better fraud detection

Veriff’s POA can grow with your company’s needs and keep up with times of increased user demand.

Scalability embedded

Discover more about how IDV is powering business growth and customer acquisition.

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Customer onboarding: quick, secure, and profitable

Technology chiefs have enough on their plate without dealing with problematic integrations. Here’s how your unsecured lending business can get better security without losing sales.

With today’s fast-changing business landscape comes great opportunities for technology and architecture chiefs to create new paths to profitability for the businesses you run. Discover how efficiently implementing innovative solutions can enhance security and drive growth.

Unsecured Lending: Build Security Without Harming Your Business | Veriff.com

If you’re responsible for your organization’s technology, then you’ll be only too familiar with the daily challenges this role must overcome. Depending on your job description, you might well have to balance risk, compliance and security with delivering seamless architecture and flawless integrations, all with the executive board breathing down your neck.

In the unsecured lending market, a key part of the global financial services industry, the pressures are as great as anywhere, with the need to keep your tech stack functioning weighed against the scrutiny of financial oversight bodies.

But with today’s fast-changing business landscape comes great opportunities for technology and architecture chiefs to create new paths to profitability for the businesses you run. The digitization of traditionally ‘offline’ businesses gives you the power to optimize processes by leveraging the best tools.

With today’s fast-changing business landscape comes great opportunities for technology and architecture chiefs to create new paths to profitability for the businesses you run.

Key is the ability to create these advantages while ensuring integrations – both proprietary and third-party plug-ins – complement existing infrastructure with neat stack alignment. You might be dealing with legacy infrastructure, or a complicated patchwork of systems that creates inefficiencies and unwelcome risk to operations.

For unsecured lending businesses, failing to conquer these issues risks missing opportunities in a personal loan market worth well over $100bn in the US alone. This is especially important in an era when the value of loans is increasing, by 4.6% in the US between 2020 and 2021.

In short, you need solutions that are simple yet powerful and won’t wreck the smooth functioning of your organization.

Fighting fraud, but keeping customers on side

One area worth considering is fraud mitigation, responsibility for which is increasingly moving to the IT department. Bad actors are industrious and ingenious, and their reach is global. The problem is growing too, meaning your technology must move with the times.

At time of writing, common scams include synthetic ID theft, where simple data sets are acquired and used to take out loans, or online accounts fraud, in which passwords are compromised, personal details changed and money stolen.

Global regulations, including Know Your Customer (KYC), in most cases make identity verification software a necessity, so you need trusted online tools that don’t get in the way of legitimate loan applications.

Optimizing processes with identity verification

Identity verification (IDV) is a great place to start. There are plenty on the market, so if you’re looking to upgrade, or even considering it for the first time, it pays to research the market. 

In a nutshell, a good IDV solution should cover a broad range of government approved IDs, be capable of ensuring the person applying for a loan is the same as the one on the document, and that the identification process is genuine – meaning not faked in some way.

Just as importantly, integration into your existing technology stack should be a doddle, with full alignment and support services on tap. With the right solution, you can ensure comprehensive security without the headache.

Unsecured lending: build security without harming your business

Buy now pay later (BNPL) is growing at a phenomenal rate, but the regulators are closing in. How can your business take advantage of the market explosion without compromising security?

As buy now pay later (BNPL) grows phenomenally, regulators are bringing in new rules. How can your company benefit from the market boom without jeopardizing security?

How BNPL Businesses Can Add Security Without Losing Customers | Veriff.com

As a customer onboarding and experience leader, your primary concern is people through the door, either figuratively or literally. When it comes to BNPL, that means creating enticing offers, an attractive brand and a platform for perfect service. 

From the very first touchpoint with a potential customer, you need a strategy that covers all the bases. That’s why 94% of companies see a powerful onboarding plan as the primary responsibility of the onboarding team, according to a 2023 report by Rocketlane. 

In the BNPL market, customers also want a service that’s quick, efficient and lets them complete a purchase with no fuss. In the same study, 78% saw shortening the time-to-value ratio as a vital route to improving experiences.  

In the BNPL market, customers also want a service that’s quick, efficient and lets them complete a purchase with no fuss. 

Reassuring customers with effective security

But the business requirement to eliminate fraud – perpetuated in scams ranging from compromised data to fake personas – and comply with regulations now and in the future, means customers are often required to take a few extra steps for the sake of security.

This is especially true for businesses hoping to make the leap to unsecured lending, a potentially high value but also higher risk market. Businesses operating here must comply with anti-money laundering (AML) and Know Your Customer (KYC) protocols if they lend above a certain level.

Done wrong, the process of security clearance can dissuade customers from getting to what they need, so risks increasing customer abandonment and churn. Done right, it provides reassurance and a perception of quality, while also leaving customers with a sense that they’ve been taken care of.

Identity verification provides a safeguard against many forms of fraud, plus it can dissuade money launderers, with a series of checks that tell you that the person accessing the service is real, genuine and present ‘live’.

With financial crimes on the rise, it’s an essential part of your security toolkit, particularly when global oversight bodies are preparing to tighten compliance rules around lending. 

The good news for customer onboarding and customer experience professionals is that the process doesn’t have to be a drag. The best IDV products on the market fit seamlessly within your platform, with stages that are clear, simple and quick. They offer multiple language options, customer support and easy payment, all of which help new customers over the line. 

So, if you want all the security without the hassle or disruption to business development, IDV could be a great solution for your organization, now and in the future.

Discover more about how IDV is powering BNPL sector growth and customer acquisition.

How BNPL businesses can add security without losing customers

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