*By Marcelo Leal
As world economies grapple with the impacts of the COVID-19 pandemic, companies are actively focusing and investing in digital transformation as a competitive advantage to gain prominence. This finding was evidenced by two-thirds of executives interviewed in a survey by The Economist Study for TransUnion¹, indicating increased investments in disruptive technologies.
A properly integrated customer experience that captures new customers and builds trust is key to driving profitable growth for your organization. Successful growth plans involve creating and implementing strategies that optimize the customer's digital journey. This facilitates acquisitions, simplifies onboarding processes, and ultimately delivers better results for customers and, ultimately, the business.
Gain a better understanding of emerging technologies and associated risks
The research analyzed the main trends that drive Digital Transformation in companies and how they can build trust in the face of a virtual consumption scenario. The study interviewed executives from 12 countries and offers perspectives on potential changes in customer journeys beyond the pandemic.
Some of the standout phrases are:
- Continuing interest in and use of Artificial Intelligence in diverse contexts and settings, from security to customer experience (CX), in different markets such as insurance, banking and e-commerce;
- Super Applications (SuperApps) and Digital Wallets will continue to have an impact on the interaction between company and customer. More than three-quarters of respondents globally predict that SuperApps will positively impact their organization's revenue over the next five years. 82% of the executives interviewed for the survey think the same about digital wallets.
Both innovations offer convenience to consumers and an easier path to purchase. Globally, companies in Asia (87%) and Latin America (82%) are more confident in how super apps can help increase revenue over the next five years, compared to companies in North America (61%) and Africa- European Union (69%). The success of giants such as China's Alipay and Indonesia's Gojeck demonstrates the power of platforms that combine markets and services and potentially inform the direction of similar platforms in the West.
As for the main barriers regarding the adoption of super apps, the survey by The Economist showed that executives' concerns are linked to security, privacy or fraud (48%) and regulatory limitations on sharing data with third parties (37.5%). In fact, these were the most relevant barriers reported by respondents in all regions surveyed. That's because once trust is lost with consumers, it's hard to rebuild.
As companies optimize digital experiences, it is critical to understand the risks involved in using this new technology, as well as the protective layers of proof of identity and fraud controls that can be used to mitigate those risks.
While offering convenience, SuperApps are a risk as all personal information is stored in one place. Meanwhile, digital wallets are linked to bank accounts and credit cards, meaning potential losses are higher if an account is hacked.
'Know Your Customer' solutions are used to optimize onboarding and conversion rates
Globally, data and credit regulation is evolving rapidly. As governments seek to protect consumers, it is up to companies to create new demands and responsibilities.
In Europe, the General Data Protection Regulation (GDPR), implemented in 2018, is widely seen as the precursor to data rules. In Brazil it is no different, since we have the General Data Protection Law (LGPD), in force since August 2020.
In the United States, California, considered the fifth largest economy in the world, adopted the California Consumer Privacy Act of 2018 (CCPA) to give consumers more control over the personal information that companies collect. In the UK, meanwhile, the pandemic has sparked new regulations around creditworthiness, with Woolard Review focusing on the burgeoning Buy Now Pay Later (BNPL) market. It is a review of change and innovation in the unsecured credit market that has had worldwide ramifications.
This means that the KYC – in Portuguese 'Know Your Client' – process of identifying and verifying the client's identity will need to be optimized. What can be achieved through the use of custom identity verification solutions, such as the validation of registration data, documents, authentications, facial recognition, and, very importantly: digital biometric recognition, whether on devices or even email or phone.
It is important to have the ability to positively identify and allow the approval of good customers, while at the same time detecting and combating fraud threats. In this context, Device Risk, by TransUnion, allows the identification and prevention of online fraud in digital channels and in real time. The solution uses a unique intelligence approach that leverages device recognition, device associations with other accounts and devices that connect to the internet, histories and detailed evidence of fraud. Protects consumer touchpoints such as account creation, credit application submission, payments or other high-risk digital transactions by streamlining the company's onboarding process.
*Marcelo Leal is Solutions Director at TransUnion Brasil
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
EN 
PT 
