Frictionless KYC: Maximize Conversions and Improve UX

Key takeaways

A frictionless KYC process is critical to maximize conversions and prevent abandonment of up to 68% of users during digital onboarding, which translates into billions of euros in lost revenue each year.

Automation and the use of technologies such as document verification, facial recognition and real-time analytics enable the creation of efficient, secure and user-centric KYC flows, while complying with regulations and preventing fraud.

Designing a seamless interface adapted to all devices, breaking the process into logical steps and requesting only essential information at each step are key to delivering an optimal identity verification experience and reducing friction.

Didit revolutionizes the KYC process with a comprehensive, free and limitless solution that combines automation, personalization, compliance and security, allowing companies to focus on growth and customer satisfaction.

A frictionless KYC process can make the difference between the success and failure of your business. Did you know that more than 70% of users say they would abandon the onboarding process if it's excessively long? In financial terms, this translates to billions of dollars in lost revenue each year.

Now imagine being able to convert that percentage of abandonments into satisfied customers. Your bottom line and ROI would skyrocket. Because a frictionless KYC can be the key to unlocking exponential growth in the digital age.

Of course, implementing these KYC verification processes, and doing it well, brings a series of benefits (better conversion rates, reduced operational costs...), but also challenges, especially for those companies still struggling with manual identity verification processes, unintuitive interfaces, or those requiring the physical presence of the customer at the branch.

We'll discuss all of this and how Didit, with its free and unlimited identity verification solution, can help boost your business in this article. Get ready to catapult your company's growth. Keep reading!

The Main Friction Points in Current KYC Processes

Traditional KYC processes often present many friction points that can lead to frustration and abandonment by users. Remember that 70% abandonment rate we mentioned earlier? One of the main obstacles is slow and manual processes that require continuous human intervention. Even some poorly optimized automated solutions still need constant review. These approaches consume time and resources and are very prone to human errors and delays, resulting in a very poor user experience.

Another common challenge is requesting too much information at once. Put yourself in the user's shoes: if you're asked for data, data, and more data, you end up exhausted. The more extensive and complex the processes and forms, the higher the likelihood of abandoning the KYC process. This is further aggravated when sensitive information is requested without a clear explanation of why it's necessary.

Unintuitive or user-unfriendly interfaces can also harm the final conversion rate. If users encounter a clunky process, confusing or unclear fields, they're very likely to end up abandoning the process. An inefficient design affects not only the user experience but also leads to errors and delays in submitting the required information.

In 2024, the lack of a multi-channel approach that allows users to carry out their KYC process on different devices is also a problem. Smartphone, tablet, computer... users' options are not limited, so it's essential that KYC verification processes can be completed on any device.

Best Practices for Creating Frictionless KYC Experiences

Now that you know the main pain points of current identity verification processes, it's time to address the solutions for creating frictionless KYC experiences that are more optimized and truly focused on the user and their experience within the onboarding process. Let's see how we can transform the KYC verification process from an obstacle to a competitive advantage.

Identify What's Truly Important and Divide into Stages

KYC regulations in Spain are different from those in the United States, United Kingdom, or Japan. That's why it's important, first and foremost, to know which regulations affect both our sector and the jurisdiction in which we operate.

Dividing the process into logical stages also helps create a frictionless KYC experience. The most logical division: document verification and facial recognition. On the other hand, when it comes to due diligence, for example, it's important to start with a basic verification before requesting more detailed information or additional documentation.

Personalize and Automate the Process

Technology is key to developing a frictionless KYC process. Thanks to automation, efficient and secure solutions can be created. Let's exemplify this with the phases we mentioned earlier:

• During document verification, advanced algorithms can detect inconsistencies in the documentation (in case it's fake or manipulated) and extract the necessary information for identity verification.
• Facial biometrics and liveness tests are fundamental during the facial recognition stage. After verifying the document, the user's facial features are biometrically analyzed, using advanced algorithms to prevent deepfakes or other frauds. Then, it's compared with the photograph on the document being verified.

While these processes are the most recognizable, many other real-time analyses are performed during the identity verification process to ensure secure KYC verification. We're talking about, for example, analyses in external databases to check addresses or IP analyses to ensure consistent verifications.

Design a Fluid Interface that Allows Remote Verifications

Have you heard of eSIMs? They are virtual phone cards and are a clear example that verification processes should be done smoothly and remotely. Therefore, it's essential to create an optimized experience adapted to all devices (mobile, desktop, and tablet).

Having a fluid interface is fundamental. Clearly indicating to users the steps to follow during the KYC verification process will also help improve conversion.

Real-Time Analysis Tools

Knowing what happens during the onboarding process in your business will help you create frictionless KYC experiences. Tools like Didit's Business Console allow you to control the status of verifications in your business in real-time.

This way, you can detect fraud patterns, conduct examinations, and gather the information needed to continuously improve your processes.

Better User Experience, Without Compromising Security and Regulatory Compliance

A better user experience cannot come at the expense of compromising security or failing to comply with regulations: both must go hand in hand. That's why it's essential to have tools that encrypt all sensitive data, both at rest and in transit, without security breaches or similar issues.

When the volume of verifications is high or working in sectors prone to money laundering, adopting risk-based approaches is key. In industries like fintech, these processes can adjust the need for due diligence to the level of risk associated with each level or transaction. This greatly optimizes processes.

Outsourcing KYC verification services also helps ensure your business is always up-to-date with regulations. Remember that, depending on the location and sector, rules can change: tools should help stay current with the latest regulations, such as GDPR in Europe or BSA in the United States.

Didit: The Comprehensive Solution for Frictionless and Free KYC

Didit has arrived to revolutionize the identity verification process by offering a free, unlimited, and forever KYC service. Our technology allows for quick and accurate verifications globally and remotely. We verify documentation from over 220 countries and territories and have AI-powered facial recognition technology to detect liveness and prevent deepfakes.

In addition to automation, thanks to the Didit App, we allow the reuse of verified credentials (reusable KYC). This way, users can verify their identity once and use it across multiple services, eliminating the friction of having to repeat the process continuously and improving the user experience. Moreover, for complete regulatory compliance, and complementary to the free KYC, we offer an optional AML Screening service, allowing comparison of user information with various watchlists and Politically Exposed Persons (PEPs).

Furthermore, security and privacy are paramount at Didit. We encrypt information end-to-end and store it securely. All of this, along with real-time analysis tools like the Business Console, make Didit the ideal solution for institutions seeking efficient, secure, and user-centered KYC.

Want to know more about our free KYC verification service? Click on the banner and our colleagues will answer any questions you may have. Take the leap to a new paradigm and get ready to boost your ROI!