Progressive risk segmentation

Progressive risk segmentation is a risk assessment strategy that empowers businesses to dynamically adjust in real time the level of friction a user encounters during identity verification. It does this by coordinating with the collection and analysis of risk signals. This allows a user to automatically move between multiple verification flows — for example, standard Customer Due Diligence (CDD), simplified due diligence (SDD), and enhanced due diligence (EDD) — as the system learns more about the individual. In this way, progressive risk segmentation helps a business balance their fraud prevention and compliance needs against the need to provide a positive user experience. 

Frequently asked questions

How does progressive risk segmentation work?

Progressive risk segmentation follows a workflow:

  • The user enters the business’s identity verification (IDV) flow. At this point, the user is usually assigned the standard level of risk as a default.
  • A dynamic risk profile of the user is created as additional identity information and evidence is collected. 
  • If at any point the user crosses the threshold into being considered a low-risk or high-risk user, they are automatically moved into the corresponding IDV flow. 
  • High-risk users will typically be required to provide additional identity information or evidence, and thus will experience a higher level of friction compared to standard or low-risk users. 

Progressive risk segmentation is heavily dependent on automated workflows (designed to include multiple if/then/else pathways) to provide a tailored onboarding experience at scale.

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