For an industry with a growth rate expected to reach $89 billion by 2025, Mobile Virtual Network Operators (MVNOs) have emerged as essential players in the telecom industry, offering innovative and niche services to consumers without operating their physical infrastructure.
So as MVNOs continue to grow, ensuring seamless customer onboarding and robust identity verification processes is paramount to eliminating losses of over $ 1.2 million per year due to fraud.
This article explores the critical role of customer onboarding and identity verification for MVNOs, sighting their challenges, and the methodology to overcome them, so they thrive in a competitive market.
How Important is Customer Onboarding to MVNOs?
MVNO operators offer various advantages to customers, such as flexible pricing, specialized plans, and improved customer service. This facilitates market competition, ultimately benefiting the entire telecom ecosystem.
Customer onboarding is the entry point to an MVNO’s services as it shapes the customer experience for new and old users. A PwC study highlights that a seamless onboarding experience significantly impacts customer perceptions. A positive onboarding process increases the likelihood of customer retention and builds a strong foundation for long-term customer relationships.
This makes Identity verification essential for MVNOs to comply with regulatory requirements and deter fraud as Fraudsters often target telecommunications companies due to the valuable personal information they hold. For instance, in Uganda, SIM-box fraud has caused significant losses in tax revenues of up to $65 million tied to international calls. Similarly, across Africa, criminals using false identities have caused telecom operators substantial monthly losses in revenue.
Through effective identity verification measures, MVNOs can eliminate these losses by preventing unauthorized access and ensuring the security of customer data.
Why MVNOs May Struggle to Provide Seamless Onboarding.
Despite their promising potential, MVNOs encounter several challenges in implementing efficient onboarding and identity verification processes. These obstacles can hinder their ability to deliver a seamless experience to customers and may impact their competitive edge. Here are some of them:
a. Regulatory Compliance: MVNOs must comply with regional and international regulations specific to each country they operate in. For instance, Nigerian MVNOs must adhere to the Nigerian Communications Act (NCA) and the Wireless Telegraphy Act (WTA).
Navigating these complex and ever-changing compliance requirements demands significant time and resources. Ensuring full compliance while avoiding legal issues is difficult for MVNOs, especially those with limited expertise and resources.
B. High Cost of Traditional Methods: Compared to larger telecom operators with more substantial resources, MVNOs may struggle to implement traditional customer onboarding and identity verification methods. The extensive paperwork, reliance on physical offices and field agents, and the need for expensive hardware and software contribute to higher operational costs. As they strive to establish their market presence, these cost constraints can be a significant barrier to success.
c. User-Friendly Experience: MVNOs face the delicate challenge of balancing security and delivering a smooth user experience. Today, customers expect real-time assistance and immediate access to services, so cumbersome verification processes can lead to customer frustration and drop-offs during registration.
d. Integration of New Technologies: Biometrics and AI-driven verification are among the new technologies that can enhance security and streamline customer onboarding. But implementing these new technologies is challenging if not properly managed. Traditional methods, such as manual document verification, may be susceptible to human error, increasing the risk of undetected fraudulent activities.
Addressing the Challenges with Innovative Solutions
Seamfix, a leading digital identity tech company, offers a range of cutting-edge solutions designed to enhance efficiency, security, and customer experience.
Digital Identity Verification
Digital identity verification is a game-changer for MVNOs seeking to streamline customer onboarding while reducing costs. Seamfix’s platform utilizes advanced technologies, such as AI, machine learning, and biometrics, to automate the verification process.
With our seamless API integration, MVNOs can effortlessly verify customer identities without needing physical presence or manual intervention. Document verification, facial recognition, address verification, and behavioural analysis are some of the robust features offered by Seamfix’s platform. Our solution ensures the legitimacy of customers with an exceptional accuracy performance of up to the 99th percentile.
Partnering with Seamfix gives MVNOs the advantage of relying on our infrastructure, enabling them to focus on serving customers better. Whether an MVNO is in its early stages or experiencing rapid growth, our scalable solution readily adapts to handle increasing verification volumes without compromising efficiency or accuracy.
Mobile-Based Onboarding
Embracing mobile-based onboarding is a crucial strategy for MVNOs to deliver a seamless experience to modern, digitally savvy customers. Seamfix has pioneered biometric enrollment software on low-end devices, revolutionizing customer onboarding convenience.
With mobile-based onboarding through our apps or web portals, customers can sign up for MVNO services directly from their smartphones. This eliminates physical visits to registration centres and accelerates the verification process.
Seamfix’s real-time capabilities further enhance the onboarding experience, enabling instant verification. Our solutions cater to customers’ expectations for fast and seamless interactions, thus contributing to higher satisfaction rates and increased customer retention.
Case in point: Seamfix’s collaboration with the National Identity Management Commission (NIMC) in Nigeria, where we facilitated the onboarding of over 80 million Nigerians into the national identity enrollment drive. This project highlights the scalability and efficiency of our mobile-based onboarding solutions.
Conclusion
Customer onboarding and identity verification may appear difficult, but with a proactive approach and the right solutions in place, MVNOs can navigate these hurdles and set themselves up for success in the competitive telecom industry.
Seamfix, as a trusted partner, offers a comprehensive digital identity verification platform designed to empower MVNOs with cost-effectiveness, ease of use, high accuracy, and scalability.
Our platform’s capabilities, such as document verification, face capture, and background cleanup, ensure a seamless and secure onboarding process. With real-time assistance and mobile-based onboarding, customers can enjoy a user-friendly experience, driving higher satisfaction rates and retention.
So, are you ready to take your MVNO to new heights? Start leveraging Seamfix’s advanced technology and expertise to position your MVNO as a leader in the digital identity tech space. With our support, you can optimize your operations, deliver an exceptional customer experience, and ensure compliance with regulatory requirements.
Contact us today to explore how Seamfix can elevate your MVNO to new levels of growth and success.
