What’s the key to a frictionless onboarding process that doesn’t compromise security? In our latest BEV Break, Middesk’s Head of Marketing, Jackie Wylie, explored how businesses can design dynamic onboarding workflows that optimize conversion while keeping fraudsters out.
Here’s a breakdown of the top insights from the session, including actionable strategies for reducing friction without increasing risk:
Friction isn’t always bad, if it’s used wisely
Customers expect fast, seamless onboarding experiences—whether they’re opening a personal bank account or applying on behalf of a business. But speed can’t come at the expense of security. The most effective onboarding processes introduce intentional friction at critical points, ensuring compliance without driving away legitimate customers.
📽️ See how risk segmentation streamlines onboarding while keeping compliance teams happy.
Clear communication reduces customer drop-off
Onboarding delays frustrate customers, especially when they don’t understand what’s happening. Simple improvements like real-time status updates, estimated wait times, and transparent explanations help prevent churn. Even when friction is necessary, customers are more likely to stay engaged if they understand why additional verification is required.
📽️ Watch Jackie break down the psychology behind customer patience and onboarding success.
Data is your strongest fraud prevention tool
Relying on static, one-dimensional data leaves businesses vulnerable to fraud. The best risk assessment models layer multiple data sources, including:
- Identity data (e.g., watchlists, sanctions checks)
- Contextual data (e.g., industry classification, adverse media screening)
- Digital footprint data (e.g., IP addresses, device fingerprints)
By combining these datasets with if/then logic, businesses can fast-track low-risk applicants while flagging suspicious behavior for manual review.
📽️ Learn how dynamic risk-based verification models reduce fraud and speed up approvals.
Onboarding is more efficient and secure with adaptive workflows
A one-size-fits-all onboarding process treats every applicant the same, regardless of risk. Instead, businesses should use adaptive workflows that adjust in real time based on an applicant’s risk profile, streamlining verification without compromising security.
For example:
✅ Low-risk businesses can be verified in seconds using automated TIN lookups.
🚦 Moderate-risk businesses may require real-time Secretary of State data checks.
🔍 High-risk businesses (e.g., crypto, gambling) need enhanced verification and manual review.
📽️ See a real-world example of dynamic onboarding flows in action.
Final thoughts
Balancing security and customer experience requires data-driven decisioning, clear communication, and flexible workflows. Businesses that eliminate unnecessary friction while maintaining strong risk controls will gain a competitive edge—winning more good customers while keeping fraud at bay.
Want to dive deeper into business identity? Join us for our next BEV Break, where we’ll tackle how to onboard sole proprietors—even when they lack formal state filings!
