Summary

Problem 🎯

The Crypto market is known to be related to anonymous activities. However, in order to remain compliant to regulations a company that provides services related to crypto has to implement KYC policies that could lead to a huge friction when retaining users.

Solution 💡

A KYC flow that adapts to current market values and do not frighten users that are sensitive to profile verification at first sight.

Role 💼

Designer and Project Manager

The Story

Context

Futuur is a Prediction Market where users can use cryptocurrencies to place bets on the outcomes of future events, thus producing better predictions for everyone. By using crypto currencies, most of Futuur's forecasters are sensitive to identity verification policies.

The Problem

The friction generated by identity verification is justified by the need to avoid frauds and to remain compliant to regulations. However, its a complicated message and if not made correctly can lead to an elevated churn rate.

Process

The process started with a benchmark research, reading a lot of terms of service and privacy policies and documenting them into a spreadsheet. Afterwards a user pesona was made using the available data on our current active users in terms of behaviour in the platform and the amount of money deposited.

After consulting with the legal team initial values were set for when to start asking for ID verification. AKA setting the thresholds. When a user reachs a certain value in deposits we would have to start verifying its identity. So we draw a first attempt at the flow and tested internally.

Our tests highlighted that sending documents is the bigger friction point and would probably cause the biggest churn rates in the funnel. On top of that we would have to use a third party ID verification platform to be able to handle the already big flow of users that needed to be verified.

That adds extra concern to the average user, not only they needed to trust Futuur with the data handling but also another company.

So we decided to create a structure to slowly let the user know about the importance of ID verification. And to wait until the usage of the app raises the belief that Futuur is safe and trustworthy. The concept of Sunk Cost was applied.