Blog Post

Outsourcing companies all around the world are currently adapting to stay competitive not just in their respective industries but also in the digital world. The word “customer service” has never been more complicated than it is now when internet interactions with customers outnumber in-person ones. What, however, is identity verification?

These same clients are also now a lot more tech-savvy and expecting better levels of transparent security without compromising on the speed at which they want their demands handled.

Every organization’s product is beginning to include digital identity verification as a critical component. One can’t establish and maintain simple and efficient security measures without them.

The key factors that require robust identity verification procedures in place regarding to be financial institutions, the banking sector, and internet marketplaces. However, a large number of businesses in various and diversified areas are already recognizing the advantages of thorough identity verification and setting the bar for best practices in digital strategy.

Here are 5 reasons your outsourcing companies need excellent ID verification as part of your digital transformation strategy:

1. Don’t Left Behind

Businesses have employed a variety of authentication techniques over the years to confirm that their clients are who they claim to be. Particularly well-liked concepts include knowledge-based authentication and two-factor authentication.

But according to current thinking, these procedures are now considered old and out-of-date, and Resourcing 360 no longer advises using them.

This is due to the fact that although knowledge-based authentication questions may be simple for users, it is simple to steal information from social media, the dark web, or other publicly accessible sources. This makes it simple for scammers to pose as anyone they choose. Due to the fact that fraudsters have developed methods to intercept these procedures, two-factor authentication methods (such as employing fobs or SMS services) are no longer sufficient.

Customers are increasingly likely to get dissatisfied with these systems and seek out a more technologically advanced service provider. All organizations should adopt a new system now instead of waiting any longer; if they don’t, their business will be left in the dust.

2. Build customer loyalty

Customers may now do their business online rather than at a physical location, but that doesn’t mean they want to skimp on quality. This means people want to care courteously, but it now means they want their data handled easily and securely.

Only 25% of customers believe that businesses manage their data ethically, according to a recent PwC survey. 87% of respondents stated they wouldn’t think twice about using a rival if they didn’t have faith in a corporation.

This means that businesses now have three main goals for their online service:

• To keep customer data safe and secure 
• In order to deliver a seamless client experience and boost conversions
• To make certain the clients they are onboarding are legitimate  

The good news is that the most recent techniques for online identity verification accomplish all three of them. The goal of these innovative technologies is to establish a transparent and efficient customer journey. That maximizes conversions from legitimate consumers.

Making an emotional connection with a consumer and persuading them that you care about their well-being is another way to build loyalty. They will then believe in you and support you vigorously. The first step in this procedure is to handle their data safely.

“A customer becomes an ally when they feel an emotional connection to an employment placement agency. They support your employment placement agency’s success as well as spread the word about the brand.

3. Cost efficiencies

On a fundamental level, decrease operating costs by automating and safeguarding the onboarding process for new customers.

This is due to the costs of human verification and security concerns, that no business is lost as a result of cumbersome procedures and numerous touchpoints.

Financial institutions ought to be the ones with the most expertise in this. Yet despite expectations, banks throughout the world continue to lose billions of dollars annually. Avoid using automated identity verification services because ID and document checks are above all.

Modern identity verification can help your outsourcing companies avoid expensive fines, which could help in saving money. Businesses that make sure their identity verification systems can withstand an attack reduce the possibility of possible criminal activity on their platform.

4. Regulation compliance

Businesses cannot avoid complying with regulations. There are currently strict compliance laws that require the verification of client identities. And maintaining identification records in more than 90 countries around the world.

These rules tend to lessen identity theft, cyberattacks, data breaches, and online fraud. They generally refer to how information gathers, how to protect it, and how to monitor the procedures adequately.

One example is the General Data Protection Regulation (GDPR) which is an EU law for citizen data privacy and protection. 

The General Data Protection Regulation (GDPR), is one example of such regulation. This rule stipulates that any business that does to adhere to the GDPR requirements will be liable to severe fines. They may also suffer significant reputational harm.

It is crucial that businesses are not off guard by the legislation because the strict measures to prevent fraud are constantly changing. Working with a supplier like Resourcing 360, which will stay on top of the game and is constantly searching for ways to improve and grow its identity verification services, is one method to achieve this.

5. Prevent exposure to various fraudulent activities

The main argument for why your business requires superior ID verification has been postponed until the very end. The goal is to lessen the likelihood that your digital platform will experience a data breach.

Global data breaches have become far more frequent in recent years. This is due to the increasingly complex methods in outsourcing companies. Those fraudsters develop to get outdate systems and commit financial crimes, identity theft, and account takeovers.

A 2018 study estimated that 60 million Americans had their identities stolen, and in 2019, the average cost of a data breach $3.92 million. This damages the victims as well as the businesses involved because customers will no longer have confidence in their services.

Outsourcing companies should be clear from this point alone that they must give identity verification methods top priority in order to close any gaps. As we advance in this digital age, the safety and security of their client data are of the utmost importance.