Think back to when everybody was jamming on MySpace while the real cool kids were setting up their castles on Facebook. Unfortunately, that’s precisely where banks are with their identity verification today. Leaving behind heavy, outdated systems while the future of finance has moved on and is already vibing to a whole new beat.
KYA? Bots Need ID Too, Right?
Here’s why Let’s face it, the financial world is no longer just humans. We’re not just discussing high-end AI agents or bots executing stock trades, but more broadly algorithms running the show. You’d be surprised how truly unaware you are about who’s pulling the strings on those digital avatars. It’s Know Your Customer (KYC), but for the bad guys. KYA is on the cusp of being a big deal and banks who are still holding onto legacy, old-school IDV are going to miss out. Think of it like this: You wouldn't let a masked stranger into your house, would you? Same logic applies to your digital infrastructure. This is more than a nice-to-have; this is about protecting the whole financial ecosystem.
IDV as the New Black? Seriously?
For too long, banks have treated identity verification like an annoying checkbox. So they treat it like a compliance checkbox, something to do on the side as quickly and cheaply as possible. Here's the truth bomb: IDV is the gateway to customer experience. Think about it. What’s the second step a new customer takes? Onboarding. And what determines that experience? The IDV process. An inefficient and confusing IDV process discourages all potential VIPs. It’s a little like a bouncer denying admission when the party is about to get fun. Next-gen IDV, powered by AI and automation, turns that bouncer into a genial host. First, it makes for a smoother entrance experience, making sure that all customers feel like a welcomed participant.
Vouched is on fire with this, and they’re absolutely correct to be. They don’t view IDV through the lens of a cost center — they view IDV as a competitive weapon. Fast, secure, seamless IDV is what makes the hip new bank run circles around the dinosaurs. Peter Horadan and Tom Donlea at Vouched explained how they get it. They’re not just selling code, they’re selling this vision of this future where IDV is a growth engine.
Missing Out on the DeFi Revolution?
In fact, the decentralized finance (DeFi) world is already testing innovative identity solutions. They have to. Trust is key when you’re working with crypto and blockchain. Banks, by contrast, are still up to their axles in the muck.
Think about NFTs. Digital ownership verified on the blockchain. So, what’s preventing banks and other financial institutions from using the same technology for identity verification? Nothing indeed, save for an absence of will and a cowardice before the unknown. The more time banks push, the more they open themselves up to risk. The clear reality is that the DeFi space is reforming traditional finance at warp speed, and traditional finance has to start keeping pace today—right now.
The fear here is real. If banks fail to embrace this new paradigm, they’re playing a dangerous game of irrelevance. It’s not merely a question of losing retail customers to fintech startups.
Look no further than your bank’s identity verification process to find it! Want to learn how you can stop looking at IDV as a compliance headache, and start viewing it as a strategic opportunity? You’re in luck. Though the party’s already started, if you’re not careful you’re going to miss out on all the fun.
Watch the replay from Banking Exchange Webinar Series, with our friends down at Vouched. They're dropping knowledge bombs on how modern IDV can supercharge your bank's security, compliance, and customer experience. Don’t miss the boat – take your IDV to the next level now. You may even discover that you like the new party better than you expected.
