Total Economic Impact Study of Onfido Finds a 261% ROI to Businesses With Payback in Less Than 6 Months
Onfido, the global identity verification and authentication provider, today released a commissioned study conducted by Forrester Consulting on The Total Economic Impact™ of Onfido.
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Businesses achieve 261% ROI with Onfido – Read the full Total Economic Impact study from @Forrester https://bit.ly/3lmDtNK #Identityverification
The study examines the potential return on investment (ROI) and business benefits organizations may realize by deploying Onfido solutions. Through customer interviews and financial analysis, Forrester found that a composite organization experiences benefits of up to 261% ROI and a net present value (NPV) of $9.86M in less than 6 months.
According to Forrester, exacerbated by COVID-19 and the resulting growth in digital interactions, identity theft and account takeover increased by at least 10% to 15% from 2019 to 2020 and it anticipates another 8% to 10% increase in identity theft and ATO (Account Takeover) fraud in 2021.1
The Forrester TEI study shows many quantifiable and unquantifiable benefits achieved by companies using Onfido including fraud detection, which are based on a composite of five Onfido clients that Forrester interviewed, who collectively serve over 60 million customers. They then applied these benefits to a composite organisation to illustrate the ROI of specific benefits – a global digital bank with $240M in annual revenue, five years old with 12 million customers, each with an average balance of $2000.
Forrester found that Onfido’s solution for identity verification had the following benefits based on a three-year risk-adjusted value and $3.8M costs incurred:
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- 30% decrease in time spent onboarding – improved onboarding productivity – manual teams faced fewer escalations and could process manual escalations faster
- 20% increase in fraud detected – lowered exposure to application fraud – more fraudulent actors were caught at onboarding
- 5% increase in customer onboarding – fewer people dropped off during the onboarding experience
Banks interviewed by Forrester said that Onfido’s solution was easy to trust:
“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.” – Business project manager, banking
- Modernized brand image – innovative experience enhanced brand
- Facilitated new market entry – Onfido is an expert in the world’s documents, so businesses don’t have to be
- Easier compliance with authorities – Onfido allowed easier cooperation with requests from regulators and authorities
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 times improved and drop-off decreased.” – Financial crime prevention manager, banking
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