Your online business is continuously at risk of attracting penalties, a drop in market reputation, and more if you haven’t invested in Age Verification for financial services.
Typically, the level of application and control of the regulatory framework is determined based on the level of risk involved. For instance, both regulatory authorities and state departments require businesses to adhere to age verification guidelines for content distribution and minor protection. This is because the lack of age verification checks could result in minors consuming adult-related services and products.
Other risks associated with lacking age verification checks include –
1- Compromised reputation of the brand in the market
To operate a business that is deemed a go-to choice by customers, it is crucial to deliver the best customer experience in every possible way.
In fact, customers are ready to pay more when they are offered an excellent onboarding experience. Plus, user satisfaction is key to building a loyal customer base.
With the absence of age verification for financial services, you showcase to your customers that your age-restricted services are easily accessible to kids. This could easily put your brand in a negative light and also put minors at risk of being exposed to materials that aren’t meant for them.
2- Non-compliance cost
Irrespective of what services and products you deal with, GDPR will be applied to you as a vendor or organization.
The aim of GDPR is to ensure security and privacy in maintaining the records and personal data of the users. It is equally important in the process of age verification of users when onboarding them.
And when you are not in compliance with this regulation, you can end up paying hefty penalties that can be upwards of thousands of dollars.
3- Financial losses
Your business can easily lower the friendly fraud in chargebacks by parents raised for the non-consenting transactions that children perform.
By choosing to integrate age verification and AML for financial services into your application or platform, you can check the age and other identifications of the person. This can easily help you to reduce or prevent chargeback costs.
With an online age verification system, you also gain access to manual age checks, self-verification, and checkboxes to confirm age features, thereby saving a great deal of money for your business.
To wrap it up,
Age verification is a need of the hour, especially to safeguard the younger population from the ill effects of age-restricted services and products. As a merchant, you have a corporate social responsibility to secure minors and restrict their access to your services that are specially targeted at adult audiences.
So, wait no more and seek assistance from Incode to ensure you have relevant age verification and AML for financial services in place.
Mark Johnston is the author of this article. For more details about Portable identity for Gig Economy please visit our website: incode.com