How to Master the 5 Primary Challenges in Online Verification


Opinions expressed by Entrepreneur contributors are their own.

Implementing a new technology into a business process usually sounds daunting for most companies. This phase may create a slew of concerns, from picking the right solution to dealing with a potential increase in churn rate if customers dislike the update. Such a scenario is typical when companies deploy an identity verification (IDV) solution.

According to a 2023 Regula global survey, 65% of organizations have already implemented IDV solutions. Significantly, among companies not using the practice now, 94% would consider deploying it in the next year.

However, few can avoid emerging difficulties at different IDV deployment stages. With no guidance at hand, many inevitably make common mistakes. In this article, we’ll focus on the major constraints on the road to a smooth online IDV flow and address the doubts of stakeholders associated with it.

1. Identifying business needs for identity verification implementation

Determining the intentions behind including an IDV component in a corporate system is a big hurdle. This task often involves one or two employees researching and making choices. Unfortunately, in many cases, these initial people don’t always completely understand the business needs. They might be IT department guys who also manage other parts of the corporate infrastructure and have vague ideas about the business needs and end-user expectations. As a result, their choices might be based on wrong assumptions.

The first step, often overlooked, is mapping out a detailed project charter. The document should include the company’s goals and the key benefits it expects by adopting the solution – whether it’s about enhanced security, streamlined user experience, business growth or compliance. It helps determine critical features and find the right IDV vendor and solution that meets all initial requirements. Naturally, the task should be assigned to specialists with the right skills.

Preparing the final document with the critical business needs and goals agreed upon with key stakeholders helps keep all the parties of the process on the same page.

Related: Here’s Why Passwordless Authentication Is Better for the Business Environment

2. Data protection challenge

Data protection issues continue to be a barrier to IDV adoption for 42% of the companies surveyed by Regula.

For those concerned, we recommend choosing wisely between the two commonly used scenarios for IDV implementation: Software-as-a-Service (SaaS) and on-premises solutions.

Available on cloud infrastructure, SaaS solutions save time and expenses. Almost everything is the vendor’s headache. However, the software developer’s reliability is critical. Clients should review the vendor’s data security and protection policies that help evaluate and address all risks associated with security concerns.

On-premises solutions deployed in a trusted in-house perimeter are likely more secure. Access to customer data is not shared with third parties, which reduces security risks. That makes these kinds of solutions more solid but potentially more costly. Additionally, with all power comes responsibility. When choosing on-premises IDV, companies need a data access policy covering all aspects of handling sensitive information.

Unluckily, data breach risks are always present, regardless of the chosen path. Still, the second scenario gives more control over the situation. It’s also worth remembering that hybrid IDV solutions combining the two approaches are also available.

Related: The Proactive Solution to Data Protection That Every Modern Business Should Be Using

3. The cost of securing an overly complex tech environment

Any IDV system requires a complex tech environment, including data processing and storage components, which is a big challenge for many businesses, as 40% of companies mentioned in the survey.

The cost of an IDV system varies depending on the industry, business size, and current infrastructure. It comes down to what the particular company’s needs are. It’s possible to start with a more affordable cloud-based solution to cover the bare essentials. As the company’s database (and business) grows, a slow transition to on-premises IDV is an option. Moreover, the cost of ownership for in-house systems can be significantly lower than the initial expenses. For cloud-based solutions, this rule often works in reverse.

Another factor that may significantly affect total costs is the comprehensiveness of the solution. Mixing different components from multiple providers to create a custom system is commonplace. However, this approach often requires more funds for implementation time and ongoing interoperability maintenance. That’s why 28% of enterprises prefer single-vendor solutions containing all the essentials for biometric and ID checks.

Requesting the vendor’s roadmap at the consideration stage enables businesses to understand how the solution will evolve. It helps plan for implementing future functionality and avoid possible mismatch issues, making the solution easier to maintain.

Related: 5 Strategies for Tech Companies to Level Up Their Green Credentials

4. Concerns regarding the ability to detect new types of fraud

Identity fraud detection is one of the key motivations behind implementing an IDV system. Threats are constantly evolving, and now we are seeing waves of more sophisticated fraud. The Regula survey found that, in 2023, most organizations have already faced the latest types of fraud: 37% experiencing deepfake voice fraud and 29% falling victim to deepfake videos. Moreover, most businesses, especially from the US, expect these threats to grow within the next two years.

IDV vendors try to keep up with the topical issues associated with identity fraud. That is another point where the developer’s roadmap can be a key factor for companies in their search: evaluating the software features designed to detect sophisticated attacks and scams can be very insightful and a great differentiator. Typically, vendors with in-house R&D have more possibilities to track new identity fraud risks and address them promptly.

5. Finding the right balance between security and customer experience

Finally, businesses are paying extra attention to customer experience (CX). According to the survey, improved CX is the main determinant of success for 55% of organizations that deploy online identity verification procedures. To compare: in 2023, this factor is more crucial than reduced security (50%) and legal (45%) risks.

When chasing the best CX, businesses can often sacrifice some security fundamentals. On the other hand, a long and complicated identity verification process can lead to higher abandonment rates. That’s why finding a balance—an ideal point between these opposite poles—is vital.

The story doesn’t end when the solution is implemented. The next stage involves maintaining the system, including regular performance monitoring and updates.

That’s when complete, timely support from the vendor and the company’s representatives responsible for the task — business process analysts and IT specialists — play a decisive role. This helps businesses reach their crucial aim — to stay competitive and compliant.



Source link

About The Author

Scroll to Top