Identity resolution is a process that allows companies to link different data, which were initially stored as separate records. It is used to establish the identity of a single customer from multiple sources, and it has been used in a variety of industries, including financial services, retail, and transportation. Companies use identity resolution for several reasons, but in the financial services industry, the main ones include the need to verify customer data, link customer data between different companies, and automate processes. Other reasons to use identity resolution include obtaining information about demographic data that can be used for targeted marketing and improving the customer experience.
The problem with maintaining the identity of a single customer is that different data platforms often collect that data. As a result, information is not always kept up to date and, since there are many other sources of data, it can be difficult or impossible to reconcile all the data. However, if this data could be linked and then merged into a single customer profile, it would be possible to address data that is not always kept up to date and bring together the data collected at different times by different organizations. This can lead to improvements in the accuracy of customer profiles and in the services offered by companies.
High-performance identity resolution software makes it easy to compare a customer's identity across multiple data sources, which may be necessary when a customer uses multiple payment methods (e.g., credit cards). Identity resolution can be used to link a customer's data to a particular customer account (e.g., bank account). Benefits of identity resolution include providing a single point of reference for customer data, which will improve the accuracy of customer profiles; obtaining information about demographics, which can be used for segmented marketing campaigns; improving database management and providing fundamental accuracy for almost all consumer-centered business decisions; assuming responsibility for linking consumers' online and offline activities; facilitating better segmentation, allowing for more timely, accurate and relevant personalization; creating a unique view of the customer and improving the customer experience as part of an omnichannel marketing strategy; and allowing marketers to use better segmentation methods and protect themselves against identity theft. Identity resolution is also known as identity verification, which ensures that the person providing information over the phone is the person they claim to be. It's an efficient way to achieve this by matching records from different sources based on common identifiers.
It is used to recognize customers by linking the records of several companies by matching records based on personal information such as names, identification numbers, and dates of birth. It uses algorithms to identify people based on their unique features, such as their voice, facial features or gait. Identity resolution has many applications in the real world, such as when people apply for loans and credit cards. The challenge of identity resolution is that it requires integrating data from multiple sources to create a complete picture of an individual. Creating a person's digital identity requires the use of CDPs (customer data platforms), which collect and organize data from internal and external sources to create a single customer profile or record.
The CDP is a data warehouse that provides access to all of an organization's customer data, regardless of source or format. Identity resolution is an important tool for preventing fraud and money laundering. It is used to create a unified view of the customer across channels, products and departments. It is also used for customer recognition, which is the process of associating a person with the data they have provided. Identity resolution can also be used to prevent fraud and money laundering. Deterministic identity resolution is used for customer recognition while probabilistic identity resolution uses a combination of attributes and statistical algorithms to determine the probability of a coincidence.
In short, identity resolution is a digital process that allows companies to link different data in order to establish the identity of a single customer from multiple sources.