4 reasons why Alternative Data is The Key to Global Success

More and more data is being created online every single day. With digital advancements occurring constantly, a continued reliance on traditional data sources that were used 20 years ago risks restricting access to products for customers.

There is a lot of talk around ‘big data’ but it simply refers to any large amount of unstructured data, and without the adequate analytics tools to derive meaning from it can deem it meaningless – but how can we help to make sense of that data to learn more about each and every one of your customers?

1. Traditional data

Traditional verification methods, such as asking a customer to send a copy of their passport or a utility bill for proof of address can cause friction for customers during the onboarding process. It can also be time-consuming and frustrating which can inevitably result in poor user experience and higher abandonment rates for your businesses.

2. Amount of data created daily

In today’s digital age, customers are creating more digital data every single day. With the vast amount of data online, it is key that businesses make the best use of this. The more data that a business has on each individual customer, the better it is for creating an optimal and personalised customer experience. 

3. Customer convenience

9 out of 10 customers conducted personal banking online in 2019. The digital world is continuously changing and being relied upon more and more. Customers have become used to being able to access goods and services within just a few clicks and swipes, and requiring any more vigorous checks can add friction to a journey, resulting in knowing very little about your customers.

4. Security

Cybersecurity is key when running a business online, especially when a customer is looking to trust your business with personal information. 74% of customers said that the most important element of their online experience is security. However, going back to customer convenience, 72% of customers also declared that they would share more data with a business if it meant that they had seamless access to products and services.

With GDPR in place, it also is no surprise that customers are stating that it is important that a business is clear about how they will use their personal data.

5.  Multi-pronged approach

Leveraging a multi-pronged approach to analyse digital data in real-time can robustly verify an identity quickly and efficiently – all online – with less friction than with traditional verification methods. Harnessing alternative data sources throughout the verification process can help to increase access for those customers who may currently be excluded from accessing certain services or products.

6. Quality of the data

Online KYC checks provide an automated, customer-friendly solution to understanding your customer better than ever before. With the ability to cross-reference data from multiple sources, businesses are able to have confidence in the quality of their data within seconds.

Through different methods such as online verification, document checks, utility bill checks, and more, being able to be carried out online in today’s digital age, businesses can heavily rely on digital ID verification checks for 100% authentic and verified data on their customers.

7. The bigger picture

With the plethora of data that can be found in a digital age, it is important for a business to look at the full picture. As long as a business is clear and transparent about what they will be using personal information for, a customer should have no problem with you taking a look at the bigger picture – learning more about their customers. 

From address verification, identity verification, date of birth checks, to email and mobile data validation, there is a wealth of information that can be learned about your customers.

How we can help

Verify and onboard up to 68% more customers than with traditional identity verification methods, using our single universal API.

With Hello Soda’s one simple, global solution, Sodium, we can enable you to verify your customers in real-time. Utilise a single element or multiple processes – it’s entirely up to you. Learn more about how we can help to automate and simplify your verification processes to help you to learn more about your customers. 

Book a demo today and see for yourself how powerful our suite of solutions are.

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