5 Steps to Improve Your KYC with Biometrics

KYC stands for “Know Your Customer.” It refers to the process where a business verifies the credentials and information of its potential and existing customers.

KYC is an essential step to prevent hijacking and tampering of sensitive customer data. It also helps businesses verify customers’ identities and assess their risk quotient.

KYC

Traditional KYC verification has many downsides, including restricted data portability and high costs. At the same time, vendors can’t exactly ignore KYC, especially as online transactions become rampant during COVID-19. 

To overcome the limitations of pen-and-paper identity verification, businesses have started leveraging next-gen solutions like biometrics. Let us talk about the advantages and best practices of using biometrics to streamline KYC. But first, let us understand why KYC is important and what are the issues with conventional KYC.

Why is KYC Important for Businesses?

Businesses, especially banks and financiers, rely on KYC for many reasons. A robust KYC system helps them to:

  • Thoroughly investigate new customers and verify their identities.
  • Prevent money-laundering and identity theft.
  • Assess the loan-repayment capability of clients.
  • Minimize potential security risks.
  • Comply with regulatory requirements.

Companies that don’t follow a stringent KYC procedure can expose themselves to fraudulent customers, insolvency, and reputation damage.

What Are the Drawbacks of Traditional KYC for Businesses and Customers?

Banks and financial institution have eliminated outdated KYC verification systems because of the following reasons:

1. Too Much Customer Friction

Customer-onboarding time has increased considerably ever since laws made KYC mandatory. According to a Thompson Reuters study, a simple account-opening process took 18% more time in 2018 as compared to 2017 since the verification time has stretched. 12% of customers say they got frustrated and switched banks when their bank asked for additional documents to complete complicated KYC.

Not only do customers have to wait longer for basic work, but they also resent the level of documentation they are asked to furnish. Privacy intrusion issues can arise when companies request for personal customer details.

2. High Compliance Costs

Companies are spending too much on legal fees and labor that are required to complete customer due diligence. Every week, 50% of bankers spend 1.5 days on onboarding new clients. The global compliance costs amount to $500 million annually for banks and finance-related businesses. If companies spend 15% to 20% of the total “bank-running” costs on compliance, risk, and governance, their profit margins dip.

3. Variable Data Rules

The list of permissible KYC documents varies from nation to nation. For example, Cyprus has recently updated their KYC requirements. They now demand an in-person meeting with each account holder. 

On top of that, there is no cognizance between companies when it comes to KYC rules. Different banks can ask for different verification documents from different clients. For instance, corporations may have to provide the director’s tax and legal papers. LLCs may be asked to furnish the Articles of Organization, etc. 

Compliance requirements depend on the Central Bank’s dictates. Plus, banks might formulate their own compliance policies. With such fluid rules, it becomes difficult for customers to keep documents handy.

For all of the above reasons, biometric verification for KYC has become popular.

Biometric-based KYC is scalable, company-agnostic, and standardized. The collection of user data is fast, simple, and portable. Moreover, biometric provides more precise and reliable MFA multi-factor authentication) than knowledge-based authentication (KBA) like passwords or PINs. 

Last, biometrics can be based on facial-recognition, voice ID, or fingerprints. By disallowing shared user credentials, biometrics is the most secure authentication system for KYC and AML (anti-money laundering). 

5 Biometric Best Practices You Need to Follow

There’s no denying that biometric KYC is the way forward. However, to use this cutting-edge technology in the best way, you need to follow the tips below.

1. Allow Single-Sign-On (SSO)

Often, users find it challenging to remember multiple passwords. Biometric-enabled SSO enables users who fail to recall passwords, to sign in. Busy, multi-taskers enjoy the convenience and time-saving of SSO. Intel has already leveraged SSO to allow users to log in to multiple systems securely using a single username and password.

2. Integrate Anti-Spoofing features

The biometric system should include built-in security systems that risk-proof your KYC from imposters. Fingerprint scanners require a live finger not recorded finger pictures to complete the scan. Similarly, liveness detection ensures that the customer is a live one. Iris-pattern scanners may require you to move your eyeball or blink to pass the due diligence routine.

3. Include Multi-Factor Authentication (MFA)

To prevent data breaches, add a security layer by using MFA. It has two components—a custom pin that is system-generated, and personal authentication data (fingerprint, voice ID, iris pattern, geolocation, etc.). Mastercard’s “selfie pay” biometric system double-checks users’ identities by asking them to upload an instant selfie.

4. Take Advantage of Multi-Modal Biometrics

Typically, a single biometric data point is used to authenticate users. But background disturbances can distort voice tags and lighting can impact facial recognition. In such scenarios, authentic users can be locked out of systems. Also, a single data point is relatively easy to penetrate. That’s why some banks use multi-modal biometric KYCs that combine the results of more than one biometric. 

Your access control machines can be equipped with geolocation tracking and face scanners. Your bank locker systems can ask for voice identification along with eye patterns. This way, you can prevent spoofing even if one of your data points is compromised.

5. Be on Top of Trends

Identity verification is a fast-evolving space. Why so? That’s because fraudsters are always one step ahead of the legal system. As new ways of data leaks, account takeovers, and credit card frauds crop up, authentication systems also revamp. So, it is essential that you be abreast of trends in data security domains. 

If you use outdated, weak protocols, you are risking your customers’ financial and personal information. You are culpable for damages that your customers incur for your negligence and incompetence. Apart from the huge legal costs, you can also damage your business reputation and goodwill in the market.

Are You Ready to Improve Your KYC with Biometrics?

With SSN and KBA systems phasing out, biometrics-based KYC is the need of the hour. Since your customer relationships and business reputation are at stake, leave no stone unturned to master biometrics KYC. They offer convenience, cost-savings, and security to you and your customers. 

Leverage all the tips mentioned above and keep a lookout for changing trends. Subscribe to our blog to get free, monthly updates on the latest developments in product development, software innovation, design, and more.

To know more about iView Labs, kindly log on to our website www.iviewlabs.com and to get in touch with us with your queries and needs just write us an email on info@iviewlabs.com and sales@iviewlabs.com.

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How to Simplify User Onboarding for Product Development?

Imagine you are thrust into a new work environment, with no instructions or orientation. Everything, from colleagues to equipment, is unfamiliar. How will you feel? Lost in the woods, disoriented, overwhelmed? 

That’s exactly how a new user feels when he opens a new app or digital product for the first time and finds it bereft of proper onboarding. It’s no wonder that 25% of people abandon an app after the first use itself.

Source: Localytics

Now, envisage this situation: 

You enter an app, you are greeted by a warm welcome. Then you are explained how to set up the app’s features and hand-held through the registration process. You tend to feel confident at having hit the ground running. You are eager to explore the app and you may come back to it again and again. That’s how user onboarding helps in boosting user retention.

In this article, you will learn:

  1. What is user onboarding
  2. Why is it essential
  3. How to simplify it

Let’s get started.

What is User Onboarding?

User onboarding is a process where new users are instructed or guided through the product experience. It can be as simple as a greeting pop-up or as complex as configuration workflows.  The aim is to deliver value to users from the get-go and reduce drop-offs.

For instance, take a look at Hopper’s onboarding interface. Through a series of clean screens, the flight-booking app conveys its value proposition to first-time users.

Image via Hopper

A super-smooth onboarding experience sets up users for success. Users understand how to apply a product in order to extract maximum value. Let’s understand the other benefits of user onboarding.

Why Is Onboarding Your Users Necessary?

With countless apps available for every possible use case, it’s imperative that your app proves its worth from the outset. Seamless onboarding is one factor that keeps users hooked to your product lest they abandon you in favor of competitors.

Plus, it renders a favorable first impression. It’s likely that users considered your product useful when they first installed it. The onus to prove them right lies on you. If your product’s orientation is rough, customers feel disappointed and dejected. They pre-empt that the future journey will also be bumpy. In anticipation, they leave prematurely, even if your product holds promise.

Last, modern customers like to share their reviews on social media, which has become a conversation driver of sorts. Don’t be surprised if you find your app’s ratings falling and sign-ups dwindling. It’s quite possible customers frustrated by your onboarding ran on aggregator websites. And don’t count on word-of-mouth publicity or referrals at all.

To save yourself from all that trouble, follow the best practices of designing a pleasant onboarding experience.

Tips to Simplify the User OnBoarding Process

The right onboarding experience can boost your revenue, referrals, and customer lifetime value in the long-term. Take a look at some hacks that can simplify your onboarding strategy.

1. Design with a Customer-First Mindset

Getting a user to sign-up doesn’t qualify as a success from a business point of view. What good is earning a sign-up if the user doesn’t eventually convert? For converting people, keep an eye on the right metrics.

Don’t obsess over counting conversions or subscriptions. Focus on nurturing customer relationships. Equip users with tools and knowledge they would need to use your product efficiently. Make everything so simple and painless that they naturally glide towards check-out.

Some onboarding processes end with feedback, which serves no real purpose. The users have barely started using your product. It’s advisable to ask for a product review after they complete one whole app session. This way, they can provide more actionable perspectives.

2. Minimize User Fatigue

The drop-off rate among new users is almost directly proportional to user fatigue that cumbersome onboardings induce. If you ask too much personal data from new customers, they are bound to leave in a huff. You will naturally inject friction into their journeys. 

At the same time, gathering customer data is unavoidable to set up processes and preferences. To overcome the hurdle, track usage metrics and collate the findings to draw pertinent insights. Metrics like NPS (net promoter score) can be calibrated later, during product reviews. 

To keep onboarding seamless, don’t overwhelm new users with too many questions. Complying with regulatory protocols like GDPR can be attributed to complicated orientation. So, minimize data collection and let users in on the action as soon as possible.

3. Keep Onboarding Flexible

Some users are impatient to start their product journeys right after installation. For them, allow a “skip intro” option. But if your onboarding covers vital product features that all users should be aware of, keep popping reminders to get users to resume the intro.

Break user journeys into small, manageable sprints and guide users to where they are headed. Keep user resources and tools handy in plain sight. Nothing frustrates new users more than if they have to dig through an incomprehensible UX for transactional information. 

4. Optimize the Process Consistently

Onboarding should not be an afterthought. You need to plan for it during the product-ideation stage itself. Also, it is not a one-time deal. Depending on the user response to your onboarding mechanism, keep optimizing the process for the best results.

Once customers start using your product regularly, ask them for feedback through email or in-app surveys. You should also solicit improvement suggestions and try to incorporate them into your process on priority. Don’t forget: your products are successful only if they satisfy user intent and expectations. 

Ready to Nail Your User Onboarding?

User onboarding is critical to foster customer loyalty, conversions, and retention. Your onboarding needs to be simple and anchored around customer needs. Keep your mantra straightforward: sign up users easily, deliver value quickly. 

Are you looking for more tidbits on product development and strategy? Stay tuned to this blog.

To know more about iView Labs, kindly log on to our website www.iviewlabs.com and to get in touch with us with your queries and needs just write us an email on info@iviewlabs.com and sales@iviewlabs.com.

Download the latest portfolio to see our work.

How Cloud Applications Can Help Bring Mobility and Agility?

“Cloud hosting” is no more a buzzword or a passing trend. It’s truly come of age, with Gartner predicting the public cloud market to grow by 6.3% in 2020. But why this sudden craze for cloud hosting, have you wondered?

It’s quite understandable. Cloud hosting provides agility and mobility to businesses. It enables companies to adapt and respond faster to evolving market conditions and customer behaviors. By harnessing cloud-power, businesses can gain a competitive advantage, which is so essential today.

Apart from that, here are the main advantages of being an “agile” business:

  • Revenue grows faster
  • Business costs reduce
  • Reputation management becomes effective

In this post, we will discuss why businesses need to be “agile” and how the cloud helps them to ace this area.

Top Ways How Cloud Applications Make Businesses Agile?

Take a look at the main benefits of cloud applications to businesses.

  1. They Facilitate Easy Scale-Up and Down

There are times when your business may need to scale operations and resources on-demand. By hosting your software on the cloud, you ensure that you are paying only for the resources that you are actually utilizing. In this way, cloud apps minimize wastage and overheads in a big way.

On the other hand, if you maintain huge infrastructures on-premise, there arises a problem of redundancy when you have to scale down operations. You not only lock a lot of capital in procuring extra resources that are no more productive but also incur maintenance costs to keep them running.

  1. They Make Business Data Available Anywhere, Any Time

With the cloud housing all your business data, your teams can work remotely from any location. Internal and external collaboration on projects is possible when data is decentralized as with cloud applications.

Your time-sensitive work can go on uninterrupted since all related information is available in the cloud. Inter-departmental projects can run seamlessly if project managers configure data-access permissions correctly.

Compare this with in-house data hosting. A lot of additional work and time gets wasted in getting access to siloed data. Plus, changes and updates done to data do not get reflected instantly and universally, which can be a problem, especially for projects spread across different departments or time zones.

  1. They Ease Testing and Updation

Updating systems becomes easier with cloud applications. This is especially true for managed cloud services. When a cloud service provider looks after the updation part of your business, your teams are free to invest their time and expertise in productive tasks. This improves the overall productivity of your business.

Testing is also a breeze when it comes to cloud applications. First, you can reduce capital expenditure (CAPEX) since you don’t have to buy or maintain costly testing equipment. Second, tested solutions can be quickly deployed since the cloud manages them. Last, your entire testing environment becomes more responsive and cost-efficient.

  1. They Reduce Complexity of Business

In a survey of business executives, 66% of respondents said that cloud applications reduce business complexity. But how does that exactly happen? Cloud makes your business processes simple, improves the distribution of resources, facilitates collaboration between teams, speeds up rollouts of complex business processes, and boosts the ability to access and share business data.

  1. They Optimize IT Budgets

Since cloud applications run on the pay-per-resource model, they are more economical for budgeted organizations. You can control capital expenditures on resources and limit usage to stay within your set budget.

Plus, you can easily allocate budget for resource expenditures and do financial planning more efficiently. In this way, you can keep a margin for unexpected expenditures and avoid cash crunch.

  1. They Help in Long-Term Strategizing

IT teams are not burdened with maintaining resources and infrastructure. They have the bandwidth to devote energy to customer communications and business planning. In this way, you can meet organizational goals more efficiently.

Final Thoughts

As you can see, the cloud boosts business agility and mobility in many ways. That’s why many businesses are moving their operations from on-premise to in-cloud. By doing this, they gain a competitive edge, reduce capital investment, allow teams to collaborate better, facilitate proactive decision making, and plan business processes with ease.

Are you thinking about migrating to the cloud as well? If you need assistance or guidance for the big move, feel free to reach out through the comments section. We are always happy to help our readers. Rest, watch this space for more ground-breaking posts on cloud computing and other IT aspects.

To know more about iView Labs, kindly log on to our website www.iviewlabs.com and to get in touch with us with your queries and needs just write us an email on info@iviewlabs.com and sales@iviewlabs.com.

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5 Tips for Easy User Onboarding

So you built a software application successfully? Great, that’s good news. But are you confident that you can convert sign-ups into active users? Are you sure your app can onboard users smoothly, convince them of its unique value proposition (UVP), and get them to start using it from the get-go?

Before you answer those questions, take a look at the stats on user onboarding:

  • 25% of apps are abandoned by users after the first use itself. 
  • 77% of people uninstall an app within 72 hours of installing it.

We don’t want to sound negative but the truth is that user onboarding is a sore point with app vendors. They often find it challenging to retain and turn first-time users into loyal users. 

That’s why, in this post, we will explain 5 effective tips for user onboarding, with relevant examples from super-successful apps.

Let’s get started.

How Can You Onboard Users Successfully: 5 Tips

Here are the best practices of user onboarding that every app developer should follow:

  1. Keep Things Simple

In a Clutch survey of 501 app users, 72% of respondents said that a quick and simple onboarding process plays an important role in their decision to keep using the program. 

Keep the onboarding steps to a minimum and ensure that they can be completed within a minute. Ask for personal contact details (mentioning reasons why they are needed) and show only essential UI elements in the first use. Try not to overwhelm new users by asking them for unnecessary permissions. 

For instance, a movie-booking app needs only location-access and SMS-sending permission. They should skip requesting permissions for contacts or camera. Those can come at later stages once users are comfortable and confident of the app.

Example: WhatsApp

WhatsApp’s user base is unbeatable. According to their CEO, Jan Koum, one of the biggest reasons for the app’s success is its simplistic onboarding process.

The app self-detects the SMS with the verification code that is sent to first-time users. This means users need not leave the app interface and dig through their inbox for the SMS.

  1. Allow Skipping Steps

Many tech-savvy users don’t like to be hand-held through the onboarding steps. They like to explore their new installs themselves. To such users, give the option to skip whole or part of the onboarding process. There is no burning need to take them through the grand tour when they are impatient to try the app for themselves.

Vevo, the popular music-streaming app, found that logins increased by 10% when they included the “Skip” button in their app. If you’re not clear about your users’ preferences, conduct usability testing with different variants of the onboarding flow. Then, deploy the variant that works best for your users.

Example: Slack

Slack puts users in the driver’s seat by giving them a “Skip the Tour” option in every screen of the onboarding stage. Users can move to the main interface as soon as they feel confident enough to start using the app. 

  1. Ask for Permission

It’s a good practice to ask permission before sending push notifications to new users. 

The Clutch survey we cited earlier found that 4 out of 5 users like to know why an app needs to know their personal details, payment preferences, or device permissions. In fact, this small step can improve opt-in rates in a big way.

Example: Letgo

Letgo is a reputable portal for buyers and sellers of used items. Instead of accessing users’ inboxes directly, they send notifications to them every time a customer expresses interest in their listed items. In this way, users feel they are in control of their app engagement.

  1. Demonstrate Value Instantly

People install your apps for a reason. They have certain expectations from your app. If the app is unable to fulfill these expectations promptly, customers churn quickly.

So, think of an efficient way to demonstrate value to new on boarders: set up a features carousel, product walkthrough, or new-user registration. Just focus on showing what benefits uses derive from the app.

Example: Venmo

Venmo is a payment wallet with social-sharing capabilities. It lets users share their payment histories with friends. To reinforce their app’s credibility, on the first screen itself, Venmo shows social proof about how popular and reliable their platform is. This inspires confidence from new users who are apprehensive about sharing their payment info with a new app.

  1. Provide Incentive for First Conversions

Encourage users to keep using your apps, give them incentives to convert for the first time. 

For example, you can provide exclusive features or promo codes to users who fill out the registration form or make their first purchase. Other incentives can be loyalty points or in-app credit.

Example: UberEats

Uber’s food-delivery brand, UberEats, make the onboarding process really frictionless for new users. 

As soon as users register, they are welcomed with a coupon for a $20 discount on the first order. If that’s not enough to entice users to order, a list of nearby restaurants displays on multiple screens.

Conclusion

We can not help but emphasize how critical your user onboarding process is. If you’re able to onboard users painlessly, take it as a big win. With the app space getting crowded and apps competing for user attention, your onboarding process can help you get a competitive edge.

So, think up an efficient process to onboard new users. A/B test your onboarding models to find the best fit for your users and apps. Don’t hesitate to steal your competitors’ onboarding model if it’s good. You need a proven onboarding strategy to get your app up and running in no time.

Do you have any questions about any of the above strategies? Drop them in the comments and we’ll answer soon. Watch this space for more revelations about app development and onboarding.

To know more about iView Labs, kindly log on to our website www.iviewlabs.com and to get in touch with us with your queries and needs just write us an email on info@iviewlabs.com and sales@iviewlabs.com.

Download the latest portfolio to see our work.