Consumers’ interactions with their financial institutions (FIs) are turning increasingly digital. Almost two-thirds have used digital methods to open accounts in the past year, for example, and more than half would use them for future account openings. This trend is prompting many FIs to search for new and engaging identity verification methods, especially as most consumers feel that it is very important for FIs to offer contactless methods to open or access their accounts. Enabling smooth and seamless identity verification
Some FIs are utilizing biometric markers like fingerprints, facial patterns and voiceprints to verify customers, as such details are unique to each individual and can be leveraged to more seamlessly authenticate their identities. These methods require new customers to provide a great deal of personal information for onboarding and authentication, however, which some may be uncomfortable providing. Consumers’ apprehension and lack of understanding regarding these biometrics could even lead them to seek out other financial services providers — unless FIs can address their worries and better explain the tools’ benefits.
So, how can FIs work toward offering cutting-edge biometric authentication methods without alienating or even driving away consumers?
Almost 30 percent of consumers do not feel comfortable sharing any sensitive personal information when opening accounts, and roughly 70 percent would prefer not to share biometric information. This problem becomes even more severe when consumers deal with new FIs. PYMNTS’ research reveals that a little communication can go a long way toward helping FIs explain biometric-based identity verification tools and the benefits they offer when onboarding new customers, however. This could ultimately prove crucial to keeping them from abandoning the process altogether.
These are only some of the findings of our research. To learn more about how consumers want to access banking services, download the report.
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