Selfies Help Find Balance Between Security & Experience

Members seem either confused or conflicted. They want protection from identity thieves but want it frictionless. So credit unions must conjure some fintech magic and simultaneously improve security without affecting engagement.

Additionally, credit unions’ capability to seamlessly authenticate and onboard members can be a competitive differentiator.

One solution offered by Swiss-based enterprise financial technology developer Temenos, which supplies more than 3,000 firms globally, involves its partnership with Atlanta-based IDology to offer credit unions a selfie verification technology in the consumer loan origination space.

As part of that emphasis Temenos, whose main U.S. office is in Malvern, Pa., integrated its Lifecycle Management Suite with the IDology ExpectID platform, a solution that supports photo identification scans with facial recognition for account and loan origination. Temenos indicated credit unions can deploy LMS, and Virtual Capture, in-house or as a cloud-based offering.

A 2018 IDology Consumer Digital Identity Study found 56% of respondents are more likely to choose a financial institution that uses advanced identity verification methods. This research also revealed consumers are looking to do business with financial institutions that have minimal friction as part of their overall service experience.

“Credit unions are driven to remove friction from the member or consumer journey,” Larry Edgar-Smith. SVP, product strategy and evangelism for Temenos, said. “Entering basic demographic data into an online or mobile application or answering ‘out of wallet’ questions to verify identity represent points of friction in an application or onboarding process.” Smith added by replacing those activities with a few camera clicks makes the process easier with leads to less abandonment and fewer follow-up calls, and, ultimately, more accounts and loans.

IDology offers real-time and on-demand identity verification and fraud prevention solutions for organizations operating in a customer-not-present environment.  “The IDology platform serves as a collaborative hub for monitoring and stopping fraudulent activity while also driving revenue, decreasing costs and meeting compliance,” Smith stated.

Chris Luttrell, SVP operations at IDology pointed out the solution incorporates onboarding, identity verification, smart step-up identity escalation and ongoing digital authentication, all fully combined into its ExpectID platform. “The solution is supported by smart layers of identity attributes, including attributes around identity, activity, location, mobile service and devices, and is surrounded by a consortium fraud network that monitors transactions and activities across industries.”

Read more about selfie loan origination in the July 18 issue of CU Times.