Three Quarters of Financial Firms See Identity Inconsistencies

For retailers and operators, identity verification is no longer just a legal hurdle. It is now a critical factor in how many customers you actually convert. A new report shows that 76% of financial firms are struggling with 'identity inconsistencies.' This means that your customers are likely facing friction or being unfairly rejected when applying for financing at the point of sale. When identity checks fail or take too long, shoppers abandon their carts. The rise of sophisticated bots and AI-driven fraud means that standard 'good enough' verification tools are failing. For a merchant, this translates to lost revenue. If your financing partner has outdated identity protocols, they might be declining legitimate customers who simply have thin credit files or non-traditional data points. Conversely, if their security is too loose, you risk chargebacks and fraud losses. Operators should ask their lending partners about their 'pass rates.' You want to know how many customers are getting stuck in the verification loop. As digital revenue becomes the primary driver for most businesses, the speed and accuracy of these background checks will determine your bottom line. Moving toward automated, global verification systems is becoming the industry standard to keep the 'digital front door' open for real buyers.

Source: PYMNTS

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