If you’re considering an identity solution to enhance your business’ digital operation, you’re probably wondering ‘is it worth it?’ and what kind of benefits and return you’ll get.
Now, you can calculate your potential return on investment (ROI) on Onfido’s solution thanks to a new study from Forrester with detailed market research and calculations.
The world-leading market research firm interviewed Onfido customers to get a picture of the benefits their businesses have experienced. Then they created a composite company, and calculated the tangible benefits and ROI they would get from investing in Onfido.
The result? Forrester found that Onfido’s solution for identity had the following benefits based on a three-year risk-adjusted value and $3.8M costs incurred:
a 261% ROI
A net present value (NPV) of $9.87M
The solution paid for itself in less than 6 months
Take a look at Forrester's report to see how your business will benefit in three key areas: user acquisition, detecting fraud, and more efficient onboarding.
26% increase in customer acquisition
With the unprecedented recent moves toward online-only and digital services, your customers have come to expect a much higher standard in speed and ease when they create a new account online. In fact, a customer attitude survey by Onfido found that 43% of customers would abandon a sign-up process if their expectations weren’t met.
Forrester interviewed Onfido clients who were previously using either manual identity verification, or another online provider. They told Forrester that they had lost potential customers who either didn’t want to wait around for a slow online verification process, or they didn’t want to go to a branch in person. Often these customers went with a competitor who made it easier to open an account.
After they invested in Onfido, these companies could offer their customers a slick, easy and modern user experience that meant fewer of them abandoned the signup process. Less drop-off means more customers acquired. One bank financial crime manager told Forrester: “People were impatient; they were dropping out of the process, and we’d never see them again. After we deployed Onfido, waiting time was no longer the main reason for leaving the onboarding process.”
- 26% increase in customer acquisition = incremental account openings worth $5.8M (as a three-year, risk-adjusted present value (PV)).
30% decrease in time spent onboarding
The onboarding process can range in complexity. In some cases a business can automate the process, whereas others need a more manual, time-consuming touch. Automating the IDV process creates a cost-saving efficiency offering speed to both the user and your business; as well as freeing up internal teams to work on the more complex cases.
Forrester’s research found that using Onfido decreases the time spent on each application by 30%. That means that each analyst can process more applications each day, and more new accounts means more revenue for your business. This way, the company achieves growth by taking in more applications without increasing staff or costs.
- 30% decrease in time spent onboarding = a three-year, risk-adjusted present value of $3.3M.
27% increase in fraudulent accounts detected
You already know how important it is to catch fraud before it can cause commercial and reputational damage.
Customers may have already had robust fraud-detection procedures in place. But adding Onfido’s meant business detected 27% more fraudulent accounts. Bank executives interviewed by Forrester said that Onfido’s solution was more reliable than their own staff: one banking business project manager told Forrester, 'We monitored it very closely in the beginning. We found that when Onfido said the ID card is okay and the same person is in the live video, we never saw a case where it turned out to be fraudulent. No false positives. So now we feel quite comfortable relying on Onfido’s judgement.'
- 27% increase in fraudulent accounts detected = a cost reduction of $4.2M.
Interested in learning more?
Our team at Onfido are ready to help walk you through how these calculations and methodology can apply to your own business.
Check out Forrester’s study here for more detail, and get in touch to learn more about how Onfido can solve your business problems from reducing fraud, to increasing onboarding and more.