Plaid Rolls Out Identity Verification Across Apps and Services

Plaid now enables consumers to verify their identity across all Plaid-powered apps and services.

The open banking platform has modified its Identity Verification product so that previously verified users can sign up for additional digital finance apps without repeating the entire identity verification process, Plaid Head of Identity Alain Meier said in a Thursday (June 8) blog post.

“Just as commerce providers have delivered on the promise one ‘one-click’ checkout, Plaid is creating the standard for a ‘verify once, verify everywhere’ experience that allows for faster verification while remaining KYC [know your customer] compliant for digital commerce,” Meier said in the post.

The new offering builds upon the Identity Verification solution Plaid introduced last year, which has been adopted by hundreds of companies and has, in many cases, delivered success rates above 90%, according to the post.

Now, with the latest solution, users can choose to save their verified identity data with Plaid so that when they sign up for other Plaid-powered apps, the company can detect that they are a returning user and can fast-track their onboarding by allowing them to review and submit their saved identity information, the post said.

“From early testing, we’ve seen an average opt-in rate of 70% and users already taking advantage of their saved identity information to speed up their application for different apartments as rental properties heat up over the summer,” Meier said in the post. “We’re also seeing this new experience reduce time to complete a verification session in half, delivering a faster experience without sacrificing security.”

PYMNTS research has found that removing friction from the onboarding process is most important, with 69% of consumers believing the speed and ease of their customer experience during sign-up for financial products is somewhat or very important.

Fifty-one percent of consumers said they would switch brands due to slow identity verification processes, according to “Advanced Identity Verification Accelerates Digital Onboarding,” the February edition of the “Digital Identity Tracker®,” a PYMNTS and Prove collaboration.

The report also found that organizations that deliver the right experience can win loyal customers and boost revenue.