Think about the last time you waited in a long line at airport security. Frustrating, right? Now imagine if the process was so quick that important checks were missed. Suddenly, the balance between speed and security feels critical.

This same balancing act happens in the world of digital onboarding. In fintech, banking, and e-commerce industries, identity verification is your “security check.” If it’s too slow, your customers grow frustrated and abandon the process. Too fast, you risk missing key red flags, opening the door to fraud and compliance failures.

So, how do you get it just right? In this post, we’ll explain why a streamlined yet thorough identity verification process is essential, how long it should ideally take, and how modern solutions can help you find that perfect middle ground keeping your business secure without making your customers wait.

Why Does Speed Matter in Identity Verification?

For most businesses, the identity verification process serves as the gateway to onboarding. When the process is too slow, it can frustrate users, leading to high abandonment rates. When too fast, it could compromise the thoroughness needed to ensure security, putting your company at risk for fraud or compliance violations.

According to a study by Docusign, nearly 30% of users will abandon an application if the identity verification process takes more than six minutes. That’s a huge chunk of potential customers gone due to slow processes! Yet, a rushed process could lead to incomplete checks or inaccuracies, leaving your organization exposed to risks like identity theft, synthetic fraud, or compliance breaches.
 

How Long Should an Identity Verification Process Take?

Most experts agree that an effective identity verification should take between 1 to 3 minutes for standard cases. This time frame allows for thorough checks without keeping users waiting for too long.

In more complex scenarios such as verifying international customers or conducting enhanced due diligence (EDD), the process might extend to 5 to 10 minutes. However, these extended timelines should be the exception rather than the rule.

A case study featuring the E-commerce platform, CDcare showed that reducing their verification time from 48 hours to a few minutes resulted in an increase in successful user onboarding with no decrease in fraud detection. That’s the kind of efficiency boost that keeps your customers happy and your business secure.

The Cost of Moving Too Slowly or Too Quickly

A slow verification process can lead to:

1. High Abandonment Rates: As mentioned, users expect speed. A long wait could prompt them to abandon your platform entirely.
2. Lost Revenue Opportunities: Every abandoned registration is a lost potential customer.
3. Increased Operational Costs: Manual verification processes tend to be slow, leading to increased overhead for your business.

On the flip side, rushing through verification could expose your business to:

1.  Fraudulent Accounts: Insufficient checks can allow fraudsters to slip through the cracks, resulting in significant losses.
2. Compliance Issues: Regulatory bodies in fintech and banking have strict Know Your Customer (KYC) and Anti-Money Laundering (AML) standards. Inadequate verification could result in hefty fines or legal repercussions.

How Dojah’s Low-code Tools Accelerate Your Onboarding Process

Here’s the good news: with modern technology, there are now diverse ways to speed up identity verification without compromising security.

Dojah’s ID verification widget, Document Verification, and Biometric Verification Widgets leverage AI and machine learning to verify identities quickly and accurately. With real-time document scanning, facial recognition, and automated checks against global databases, you can drastically reduce the time it takes to verify a new customer.

Take, for example, Fintech Startup, Cleva Banking, cut their identity verification time in half by using Dojah’s no-code solution, Easylookup to verify their users without compromising on fraud detection, leading to better customer satisfaction and retention rates.

Conclusion: The Sweet Spot of Speed and Security

An ideal identity verification process is fast, efficient, and thorough delivering both a seamless user experience and robust fraud prevention. While 1-3 minutes is a sweet spot for most businesses, complex cases may require slightly more time. What’s important is that you optimize this process to maintain security without sacrificing customer experience.

If you’re looking to achieve that balance, consider our ID verification Widget. This solution has been designed to help you optimize identity verification by using the latest technology to ensure your business stays secure while improving customer satisfaction.

Ready to streamline your identity verification process? Contact us today to learn more about how we can help you onboard customers faster and more securely.