In today’s digital world, online businesses face challenges in acquiring customers, meeting their demand for secure transactions, ensuring KYC compliance and dealing with the rising cases of fraud. To keep up with the fast pace of digital adoption in the gaming industry, sectors like skill gaming, real money gaming, fantasy gaming and online gambling need to optimize their identity verification processes and adhere to KYC standards, to prevent costly fines and make the user onboarding process cost-effective and efficient.
To inspirit your customers enough to reduce churn and drop-offs, acceleration of onboarding workflows is crucial. Businesses need to provide flexible, low-friction customer journeys. This means delivering the right verification journey to the right customer at the right time, fast-tracking trusted identities, and taking higher-risk ones on a more secure path. Advanced fraud prevention is also crucial, and organizations must prioritize mitigating potential fraud losses while keeping identity verification costs in check.
KYC is a crucial step in ensuring that the users are legitimate and compliant with the regulations. It is essential to understand what KYC is and why it is crucial for fantasy apps. KYC is a process where a business verifies the identity of its customers to prevent fraud, money laundering, and other illegal activities. In the case of fantasy apps, KYC is necessary to ensure that users are not underage, are not banned from participating in fantasy games, and do not have a history of fraud or other illegal activities.
The traditional KYC process involves collecting user information such as name, address, and identification documents like a passport or driver’s license. The process can take up to several days, causing users to drop off and abandon the onboarding process, resulting in lost potential revenue for the fantasy app.
To avoid this, fantasy apps can leverage technology and automation to simplify the KYC process. One solution is to use Artificial Intelligence (AI) and Machine Learning (ML) algorithms to verify user identities. This includes an API-based KYX solution that can fetch and verify data from government databases including government IDs and public records. This process can help verify age, face match, inconsistencies and potential fraud in a quickly deployable package.
Another solution is to use an identity verification solution, which uses biometrics to verify user identities and can quickly verify user information, reducing the onboarding time. IDV solutions can also provide additional services such as fraud detection and prevention, ensuring the integrity of the fantasy app right from the onboarding stage.
To accelerate the customer onboarding process further, fantasy apps can adopt a tiered KYC approach. This approach involves collecting different levels of information depending on the user’s risk profile. For example, users with a low-risk profile may only need to provide basic information such as name and email address, while high-risk users may need to provide more detailed information such as proof of income or employment. This approach can help reduce the overall onboarding time and cost, while still maintaining the integrity of the KYC process.
With ID verification acting as the first step into a gaming platform, it is essential to streamline any ID verification or KYC processes involved for both compliance and fraud prevention. By leveraging technology and automation, adopting a tiered KYC approach, and using third-party KYC service providers, fantasy apps can not only accelerate the onboarding process without breaking the bank but also enhance the user experience, reduce drop-off rates, and increase revenue potential.
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Sumanth Kumar is a Marketing Associate at IDcentral (A Subex Company). With hands-on experience with all of IDcentral’s KYC and Onboarding Technology, he loves to create indispensable digital content about the trends in User Onboarding across multiple industries.