How to increase conversion rates on KYC-online stages
The development of digital processes has opened up access to many services online. These include financial services, rental services, travel services and others. However, users of such services cannot remain anonymous. Transparency of processes, fraud protection and legal requirements have led to the introduction of KYC, mandatory online customer verification.
This process goes from simple to complex in each service. For example, for some resources a simple registration with email confirmation is sufficient, for others a phone number is required, for others an identity document is required, and for the most complex ones biometric verification and an additional set of documents are required.
Each step in the process of registration or connecting access to services is a step on the user’s route to the final goal. The task of the business is to organize simple, clear and safe movement along this route. Product managers fight for conversion at every step, including online KYC procedures.
Mandatory verification steps should not result in the loss of customers, because it is essentially a technical step, but the average conversion rate ranges from 65% to 95%, depending on the industry and the complexity of the process.
User journey in the verification process
- Registration/increase the level of access to services:
At the basic stage, the user enters credential
- Confirmation of contact details:
Occurs via a one-time link in an email or via a confirmation code via SMS.
This step does not verify the client as a person.
- Filling in personal information:
After successful verification of contact details, the user fills in their personal information that is required to access the services.
This can be First and Last Name, ID card details, etc.
This step can be automated using OCR, a document recognition technology. It allows data to be extracted from a photo.
- Document Upload:
The user uploads necessary documents for identification, such as photos of an ID card, driver’s license, or passport.
Most often, services allow you to take photos of documents or upload existing photos from the user’s device.
- Document processing:
The platform automatically processes uploaded documents using text and image recognition technologies.
Several processes can work here: reconciliation of data with those entered manually by the user; instant export of data to the company’s CRM system, as well as search for similar data among the existing ones in the customer database.
- Facial mobility verification, protection against bots and fraud:
The user is prompted to perform a facial verification procedure using the smartphone camera.
This may include photos or short videos to confirm liveliness.
- Result evaluation:
The system automatically analyzes all submitted data and documents.
It recognizes the faces in the document and in the video and matches them;
In case of successful verification, the user is notified that the process is complete and access to services is granted.
- Repeated request in case of failure:
In case of failed verification, the system provides additional instructions or requests to correct errors or provide additional data.
- Security and Privacy Policy:
The user is provided with information about the security and privacy policy and consent to the processing of their data.
- Access to services, account status upgrade: After successful verification and completion of all steps, the user gets full access to the financial services provided in the app.
Key metrics: number of users and conversion
To evaluate verification processes, sales managers most often use standard metrics. Conversion at each stage is calculated as the ratio of the number of users who successfully passed this stage to the total number of users at the previous stage.
The formula for calculating conversion is as follows:
Conversion=(Number of successful completions of a stage/Total number of users in the previous stage)×100%.
What affects the conversion rate in KYC procedures and online verification in general?
- Image quality
Photos and videos taken in poor conditions, without normal lighting or too bright can complicate the user experience. A lot depends on the quality of the recognition algorithm. For example, the Verigram solution, we test in the most difficult conditions and constantly improve the «vision» of the model. The problem is also solved by hints in the interface, but they are less helpful than improving the quality of the algorithm.
- Technical problems
Crashes, errors or slow processing may annoy users. Performance can be affected by the quality of communication. This is also where technical solutions come into play. Verigram modules are capable of working even with a weak internet signal. More often than not, however, these external causes are almost impossible to influence.
- The length of the process
Internet users do not like to wait for long periods of time. If the interface does not give an understandable signal for more than 15-20 seconds, the client may refuse to continue the route. Studies show, more often than not, users believe that there is some kind of application failure and their personal data may be jeopardized.
- User Experience (UX)
A complex and confusing interface can lead to a refusal to continue the route.
- Clarity of instructions
It is important to explain to the user at every step what needs to be done. Despite the fact that the process of online document verification and biometrics is actively penetrating our lives, but for many people it remains complicated.
Considering all these aspects can have a significant impact on the conversion rate growth of KYC stages of user verification. At Verigram, we continuously monitor these factors and evaluate conversion rates at every stage of the verification process.
Clear reports and a visual representation of successful and unsuccessful transaction data are available to our clients. This makes it easy to understand what happened to users who did not complete the verification route.
Explore Verigram’s solution to improve your KYC conversion rates. Talk to our experts about how to integrate the solution into your system. Request a demo of Verigram today!
