Customer verification is an integral part of any business providing financial services to its clients. From the business side of things its benefits are quite clear. It is instrumental for compliance with legal requirements and regulations as well as reducing risks of fraud and costs incurred from the provision of incorrect or false information. As for the clients, customer verification has its own advantages that shouldn’t be overlooked. What are they?

From trust to protection 

1. First and foremost, customer verification serves as a vehicle for trust between the financial institution and its customers. Both need to feel safe to enter into a relationship with one another. It means that both parties need to be assured that the other party is what or who it claims to be. It adds to the transparency of the whole relationship as well as helps the client to get a glimpse into customer data management practice at the company. 
2. Customer verification also protects clients from fraudulent activities that could be committed by other clients. If all company clients are verified through a proper verification process that is fast, reliable and efficient, a client should feel safe to entrust the financial institution with the money and financial needs. 
3. Another great benefit of customer verification is that it prevents or at least reduces the risk of identity theft. We live in a complex and digitally advanced world that opens up a lot of opportunities for new ideas and businesses. Unfortunately, sometimes these ideas and businesses can be overstepping the legal limits accepted in a certain society or system, including stealing someone’s identity to get services free of charge or commit more serious crime. By performing customer verification, financial institutions reduce the possibility of providing a service to or charging the wrong client.  

Improving customer experience

There are several ways to perform customer verification, but the simplest and the most comfortable for the clients must be an online one. It can be done either through or multi-factor identification, especially for existing clients, or by asking potential clients to submit a set of documents. At Mistertango, for business clients we ask for scanned IDs, address confirmation papers or business registration documents to start the onboarding procedure. 

Online customer verification allows clients to save time and get on with their business right away instead of waiting for the approval from the financial institution. This greatly contributes to a better customer experience and that’s why more and more companies are moving towards this type of identification.