It is imperative for businesses to keep pace with the evolving customer expectations of quick and easy account opening. Heavy-handed authentication mechanisms can introduce friction that may lead to customer abandonment, whereas lenient verification methods run the risk of allowing fraudsters onto their platforms. As a result, in addition to incurring financial and reputational damage, businesses face difficulties complying with complex and changing regulatory obligations.
Further, fraudsters are increasingly using genuine-looking synthetic identities which legacy systems cannot identify. Manual reviews cause delay in user approvals and can result in customer resentment. They also increase operational and user onboarding costs that can slow down business growth and impede expansion into new markets.
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