Rupert Spiegelberg, CEO of IDnow

Younger consumers of financial services are happy to share personal data with banks, but expect to receive benefits in return in the form of personalised offers, recognition and other rewards, a leading figure in the field of ID verification has said.
“Younger consumers are drawn to the GAFA model – Google, Apple, Facebook and Amazon,” explained Rupert Spiegelberg, CEO of verification solution provider IDnow. “GAFA and other platforms are providing attractive alternatives to traditional banks, especially among younger generations. Furthermore, younger customers increasingly want to engage via online platforms to help shape future banking products and services.”
He said that there is mounting evidence that these consumers no longer see personal relationships as the main driver of trust between themselves and their bank, and are increasingly open instead to data driven services: “This is all good news for the online, so-called challenger banks, and a wake-up call to traditional banks,” said Spiegelberg. “If they can’t adapt to changing customer demand and demonstrate that they too can be sexy and innovative, just like their online cousins, they will lose out. In this digital world, customers are seeking speed and convenience, and they want it on their terms.”
Technology, he said, should be seen as the enabler of a bank’s ability to compete and win the hearts, minds and trust of a new generation of banking customers: “This demographic is just not going to go into a physical branch to open an account, for example, or post photocopies of ID documents, so fast, convenient and secure onboarding of this group is a crucial first step in winning a customer for life,” he added.
Spiegelberg said he believes online identity verification is ticking this box for many challenger banks: “As consumers are able to pay with their smartphone, one would certainly expect to also be able to open an account online in the first place, without visiting a bank branch,” he concluded.
In addition to consumer convenience, online ID verification enables providers to onboard new customers at a fraction of the cost and with minimum friction, he said: “As we do more online, KYC becomes increasingly important, but for businesses trying to onboard new customers as fast and as securely as possible, how can they be sure they have ticked the KYC box? This is also true of the gig economy, of course. This is why online ID verification is becoming big business. McKinsey believes it will become a $20bn digital market by 2020.”

by Guy Matthews