ID Analytics office
ID Analytics office

Onboarding technology must balance speed and security

ID Analytics office
ID Analytics office

When a study reveals a high percentage of people want to access more services via mobile technology it is not exactly front page news.

Couple that with an occurrence conversion rate near zero percent, however and we have ourselves a story.

Such a discrepancy was revealed by a study commissioned by credit and fraud risk solutions provider ID Analytics through Javelin Research.

Javelin predicts 63 percent of Americans will use mobile banking by 2018. Seven in 10 wanting a checking account and eight in 10 applying for a credit card will prefer to complete the process online. Those rates are not far from 2015 rates, which include a new account online application rate of 50 percent.

Aaron Kline
Aaron Kline

Yet mobile conversion rates are often below one percent, ID Analytics Vice President Aaron Kline said.

“The new account application process is fairly painful. Having to enter your name, address, date of birth and Social Security Number are deal killers.”

This large gap means many start out trying to apply online, but few finish. Sort of like joining the Marines.

The main reason is optimal mobile customer interactions are not supposed to involve lengthy data entry sequences. On-screen keyboards are often small and attention spans are short.

In our high-tech society most people, when they encounter a cumbersome online experience, innately know there has to be a more efficient way. When they encounter an inefficient one, they tend to have low tolerance.

logos-id-analyticsThis presents a challenge for financial institutions. They have to be thorough. And they have to be quick. They also have to allow for a diverse experience where someone begins the application process by researching on their iPhone while riding the subway to work, starts to apply at work before being busted by the boss, and finishing it in their jammies on their home laptop while watching a rerun of Walker Texas Ranger.

That is the thought process behind ID Connect, Mr. Kline said. ID Connect is a new tool unveiled at this fall’s Finovate show in New York.

Once a consumer initiates a transaction, the goal is to ask them for as little information as possible, Mr. Kline explained. The consumer enters their last name and the last three digits of their SSN before the ID Network populates the application with information already available from existing ID Analytics clients.

Because of the size and diversity of ID Analytics’ client base, which includes multiple marketplace lenders, telecommunications firms, wireless platforms and other financial players, there is a good chance much of the information required by most applications is securely stored somewhere in the network. Probably multiple times.

Think about all of the different products and services you apply for. How often are you faced with truly unique information requests?

If this sounds too Orwellian, Mr. Kline said the original ID Analytics products which generate the data include an opt-in mechanism which allows the applicant to control access to their personal information.

This is a different way of thinking from the traditional lender approach to expediency and security, Mr. Kline said.

“Banks are trying to balance out being frictionless versus safety and security. They see it as a trade-off.”

“We are actually able to do both – bring them through and sign them up.”

Two elements help accelerate the onboarding process. ID Connect Resolution asks a consumer for one or two pieces of personally identifiable information. Once the user’s identity is confirmed, required data fields are automatically populated.

ID Connect Photo extracts information from a mobile image of a government-issued identification card.

Once completed, this information is included in the network, which helps conversion the next time a consumer applies anywhere on the ID Analytics network.

Mr. Kline said elaborate fraud protection is built into the system, which is good, for bank-related fraud is on the rise. Fraud related to new account openings hit $2 billion last year. Data breach notifications affected close to 62 million Americans.

Mr. Kline explained one of the reasons for the rise is new chip and pin technology which has required many people to obtain new cards and switch accounts. Such actions are ripe for fraud, whether it be online or the tried but true mail interception shtick.

Instead of increasing your risk of being victimized by fraud by participating in the network, Mr. Kline said the opposite is true. As ID Analytics technology populates the application, it can check for fraud like it does for every network participant.Each unique piece of information is analyzed, as is the entire application. So if your SSN was used in a process inconsistent with the rest of your digital footprint, a red flag is raised.

ID Analytics can also analyze your mobile device for evidence of fraud as you connect to the network, Mr. Kline added.