Guest blog: How to Create a Member-Centric Digital Identity Strategy for Building Societies

Leveraging technology not only safeguards assets but also enhances the member experience. Focusing on member experience in your digital identity strategies isn't just important-it's essential.

What exactly do you mean by 'digital identity'?

Before diving into the 'why' and 'how', let's clarify 'digital identity'. Digital identity is the online fingerprint representing an individual across various platforms and transactions. A robust digital identity strategy ensures secure and seamless interactions with your services.

But why is this so important for building societies to align member experience with digital identity?

An important question. Here are some great reasons:

• Member trust: For building societies, trust is currency. According to research from DigiCert, 84% of customers would consider leaving a vendor that did not effectively manage digital trust. A seamless digital identity experience reinforces this trust.
• Convenience through automation: Many building societies serve a broad demographic, including non-tech-savvy members. An intuitive and member-friendly digital identity verification process is essential for all members to comfortably join the digital transformation journey.
• Personalisation: Digital channels can replicate the personal touch by using identity cues to tailor experiences for each member. A well-crafted digital identity framework helps recognise preferences and anticipates needs.

I get it, but what could possibly go wrong if we don't incorporate member experience into our strategy?

There are quite a variety of things that could negatively impact your members:

• Unwanted risks: Clumsy or intrusive security measures erode trust. The absence of a finely tuned digital identity strategy opens the floodgates to threats like fraud, hacking, and data breaches. Implementing robust verification methods such as two-factor authentication or biometric checks not only reassures members about the safety of their data but also protects the institution from potential digital threats.
• Increased member churn rates: A frustrating member experience often leads to higher churn rates. Recent studies show that digital-first banks are rapidly gaining market share by offering superior member experiences that traditional building societies struggle to match. This trend highlights the urgent need for building societies to enhance their digital identity strategies to retain their membership base.
• Negative brand perception: Every interaction matters to your brand image. Brands that fail to deliver a seamless digital experience risk losing customer loyalty and trust. Remove difficult navigation or complicated authentication processes that can lead to negative service experiences.

What challenges can I expect to encounter when working to implement this approach?

Ah challenges, and, yes, there will be some. Here are a few to consider:

• Cost: Implementing a new digital identity strategy can seem costly. However, affordable SaaS tools have significantly reduced these expenses.
• Technology hurdles: Not all building society members are tech-savvy. Ensuring new technology is user-friendly is key.
• Regulatory compliance: With GDPR and other regulations, compliance isn't just best practice; it's mandatory. Navigating through the maze of GDPR, UK Corporate Governance, Operational Resilience, and other regulatory frameworks requires more than just adherence to the rules. Leverage technology to codify your controls.
• Data integrity: Unstructured data without robust controls is a prime target for theft. A sound digital identity strategy must enforce stringent security measures.
• Agreeing roles across the business: Getting the right individuals/teams involved can be challenging. Understanding dependencies between teams and agreeing on clear roles will positively impact the member experience.

Ok, I get it… member experience is important but challenging. What should best practice look like?

Here are some actionable steps:

1. Member-centric design: Prioritise member needs by involving them directly in the design process.
2. Education & support: Assist members through transitions by providing clear guidance and support.
3. Continuous feedback loop: Establish a continuous feedback loop by regularly collecting and analysing member feedback.
4. Collaboration within the industry: Engage in collaboration with other building societies and stakeholders.
5. Leveraging off-the-shelf tools: Adopt off-the-shelf tools that offer customisable features, robust security, and regular updates.
6. Invest in member-friendly technology: Ensure the user interface is intuitive.
7. Balance security and convenience: Aim for a balance that reassures members without causing frustration.
8. Personalise the experience: Use data effectively to provide personalised services.

In today's digital world, building societies must focus their digital identity strategies around members to maintain trust, boost loyalty, and provide a seamless experience. This involves adopting member-centric design, offering robust education and support, and keeping an open feedback loop. A digital identity strategy is more than a safety measure-it's key to enriching member experience, fortifying relationships, and propelling your society into the future. Here is some food for thought to leave you with, taking this all into account, can building societies really afford to ignore the importance of a member-first digital identity approach?

To find out more, visit https://www.protiviti.com/uk-en

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