In today's digital landscape, transactions are increasingly conducted online1. With the rise of identity fraud and escalating privacy concerns, it’s no surprise that 55% of consumers2 identify security as the most important aspect of their online experience.
"Digital trust is the new currency of business. Leaders need a new set of solutions to meet the demands of today’s digital-first environment."
- Azim Esmail, Head of Venture and Product at ATB Ventures
Businesses are under immense pressure to ensure the security and integrity of their digital interactions. In this blog post, we’ll explore why digital trust is emerging as the new currency of digital-first customers, and provide next steps for businesses looking to stay relevant in an increasingly competitive marketplace.
The emergence of automated identity solutions
Over the past few years, there has been an increase in the adoption of identity verification solutions in Canada; shifting from convenience to a matter of social and economic security. With this shift, the following adoption drivers have emerged:
- Rising identity fraud
- Privacy concerns
- Customer expectations for digital experiences
Let’s explore each one in greater detail.
Rising identity fraud
Identity fraud poses a significant threat3 to individuals and businesses alike. From stolen credentials to synthetic identities, fraudsters are getting more sophisticated and using advanced, AI-enhanced tactics like social engineering and phishing to exploit vulnerabilities in digital systems. Organizations everywhere are looking to implement identity verification workflows4 to mitigate these risks.
Privacy concerns
Many companies struggle to strike a balance between collecting customer data for personalized services and enabling data privacy and security for end users. With nearly eight in 10 Canadians5 expressing concern about online privacy issues, it’s no wonder that they are looking to their businesses of choice to prioritize privacy and data protection.
Customer expectations
Customer expectations play perhaps the most pivotal role in shaping the adoption of digital trust solutions. As more and more consumers demand frictionless interactions, organizations must prioritize trust and transparency at every touchpoint, from onboarding to resolving support inquiries.
But in many cases, increasingly rigorous identity verification regulations such as KYC (Know Your Customer) are coming at the cost of customer convenience. A recent Mckinsey study6 reveals that 40% of the time a customer spends onboarding is now consumed by KYC and FINTRAC regulations. Businesses must prioritize exceptional user experiences while facilitating seamless yet robust identity verification and authentication practices, in order to gain a competitive edge and drive growth and long-term loyalty.
Where we go from here
The importance of embracing digital trust solutions cannot be overstated, especially across financial services, health care, payments, and e-commerce sectors. So much so that 51% of enterprises7 plan to increase security investment spending, while 72% of online markets8 and 52% of financial services providers9 have increased their use of ID verification technology.
Is your organization embracing this digital-first future?
Our most recent report “How Digital Trust Is Reshaping the Emerging Technology Landscape” provides an in-depth look at how enterprises big and small can gain a competitive edge by prioritizing customer trust and data security, and embracing digital trust.
Download the report today: