Technology advancement has revolutionized the identity verification process in firms. This has promoted member experience, especially in credit unions. Member experience entails how one sees and interacts with your firm. It determines whether a customer will keep coming back for more services. Successful credit unions are those that keep their members engaged.
As of March 2019, there were 5,335 credit unions with a membership of over 117 million in the United States. This shows that more people are joining credit unions to reap the many benefits on offer. For that reason, more credit unions are adopting the use of software in identity verification processes. This is to ease the identification process for the ever-increasing customer base.
Trends in Identity Verification That Promote Credit Union Member Experience
There have been lockdown measures imposed by governments due to the coronavirus pandemic. These measures have led to credit unions adopting and improving remote services. Members can access union services both on their computers and on smartphones. This has made it necessary for these unions to integrate sound identity verification technology into their operations. Such initiatives also help to counter cases of identity and information theft that lead to digital fraud. Manual verification systems are being phased out by the day. This is because they are vulnerable to fraudulent activities and are time-consuming.
Some of these trends in identity verification include:
Most credit unions do not want to do away with their existing identity verification processes. This is due to the high cost of replacing the existing systems. As a result, new identity verification systems are being developed to complement the existing systems. This way, it is easy to deal with compatibility issues while still in the development stage. The adoption of new identification systems is seamless thereby promoting efficiency. Member experience is thus enhanced and in a cost-effective manner.
This is one of the most popular trends in the market. Biometric technology has played a huge role in reducing cases of forgery and identity theft. The use of biometrics takes various forms.
It provides the real-time physical location of a device. Credit unions can place restrictions on the locations where members can transact. The use of geolocation has discouraged many international fraudsters. Transactions can only go through when the user is within a certain geographical location. Further, the use of geolocation has enhanced member experience by notifying them of nearby offers that they should be on the lookout for.
This method involves scanning a registered fingerprint to verify identity. It is one of the most effective biometric methods of identity verification. This is because fingerprints are unique to everyone thus enhancing safety. Members of credit unions that have adopted this method no longer have to worry about impersonation. They complete and approve transactions within the shortest time possible.
3. Facial Recognition
This involves identifying a face by mapping facial features from a video or image. The facial recognition system then scans for a match with an already registered face. This method has made it easier for credit union members to access their accounts and transact. Even so, privacy issues have arisen due, especially when dealing with lookalikes. Further technological advancement should combat this.
4. Two-Factor Authentication
This is a security method that requires a user to verify their identity using two factors. Most systems need a username and password to access. Even so, having an extra verification method increases account security even further. The use of biometrics and sending a one-time password to a trusted device are some of the most common forms of 2FA. Credit unions that have adopted this method assure their members of account safety. This assurance of safety in return enhances their members’ experience.
5. Use of Blockchain to Store User Data
Data has become very important in today’s world. Therefore, credit unions have had to find data storage solutions that assure security. Encryption of blockchain data storage systems prevents third-party access to data. This allows users to upload encrypted chunks of data onto a blockchain. Using this method of data storage reduces data storage costs by over 50%. It also ensures that data is available to the authorized user even when the network is down.
Moreover, blockchain helps to reduce the chances of data loss as it stores extra copies in the system. Such an efficient data storage method is vital for any credit union’s success. Members do not have to worry about unauthorized access to their data. Besides, the data is readily accessible to the person verifying transactions, hence saving time.
6. Enhanced Member Experience
Technology has greatly enhanced member experience in many firms. This is due to the seamless processes that now define most institutions. As further innovations continue to take place, the future is bright for credit unions. Technology will only increase the efficiency with which they offer their services. Even so, many non-technological factors promote member experience. It is important to request member feedback regularly. This guides the credit unions on other areas that need improvement.
Takeaway: ID Verification Can Boost the CU Experience
Credit unions can harness the latest trends in automatic, digital ID verification to boost their members’ experience. Comprehensive integration with existing backend systems as well as different types of biometric technology can ensure ID verification promotes KYC efforts while enhancing the member experience. Visit lightico.com to learn more about ID verification.