LSEG Editor
One reoccurring theme during onboarding is security, which influences every step of your process. Whether you’re in a highly-regulated industry or simply need minimal information to conduct business, safeguarding both your company and your customers is essential.
In 2023, payment fraud cost merchants an estimated $48 billion US dollars – and is expected to rise in 2025. Knowing this, businesses must be vigilant against a variety of threats, including synthetic identities, account takeovers, unauthorized payments, and Business Email Compromise (BEC). These emerging risks can significantly impact the onboarding process, making it crucial to implement strategies that not only protect your organization but also ensure a smooth and secure customer experience as well as a quick onboarding process for vendors.
To prevent fraud and optimize the onboarding experience for all involved, organisations can implement several key strategies:
- Real-time verification of bank accounts to check that customer/vendor and account details match.
- Multi-layered authentication strategies to enhance security and combat the sophisticated methods used by fraudsters.
- Behavioural pattern analysis to identify good customers/suppliers and keep bad actors out of systems, rather than simply profiling fraudsters.
- Robust KYC/KYB verifications, along with behavioural analysis, to ensure trust throughout customer and supplier lifecycles.
- AI and machine learning for real-time monitoring, faster fraud detection, and enhanced security measures. These technologies can analyse vast amounts of data to identify suspicious activities, enhancing the ability to detect and flag fraudulent transactions.
It is a herculean task to provide a level of security at the speed in which information is shared, LSEG Risk Intelligence helps global organisations safely and securely onboard and verify the account and identity of their customers. This is pivotal for a positive onboarding experience based on customers’ criteria and the requirements at your organisation.
By deploying strategies that incorporate our solutions, organisations see benefits from the onboarding experience both internally for their own needs as well as externally for their clients’ needs. When organizations utilise these resources and tools, specifically our account verification and identity verification solutions, the customer conversion abandonment rates decrease, onboarding experience improves both for vendor and customer, costs reduce, and risks decrease exponentially.
As we move into the next phase of what the future of onboarding could be, we are curating solutions powered by AI and machine learning to move faster and more intelligently. By incorporating these tools into your onboarding process, data reviews will be enhanced, information processing will quicken, and sharing insights with your customers and vendors can happen in real time to assure them that they are engaging with an organisation that values their time, protects their data, and operates at the highest level.
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