In the betting market, it is no longer enough to simply invest in media or aggressive acquisition campaigns. The user experience from the first contact with the platform has become a real competitive differentiator.
In this context, identity verification, KYC (Know Your Customer), has become one of the most critical points of onboarding: it directly impacts conversion rates, customer acquisition cost (CAC), and even retention.
Below are 5 practices adopted by leading operators to improve KYC performance, complying with the requirements of the LGPD (General Data Protection Law) and anti-money laundering regulations (PLD/COAF).
1. Data reuse to speed up the process
Imagine the following situation: you invest in media, attract qualified traffic, and when the bettor reaches the KYC stage, they need to submit documents for verification more than once.
Although this process is necessary, it can be more agile and efficient, especially in markets with diverse technology and document formats, such as Brazil.
How does it work in practice?
Platforms connected to the same verification provider use data in cryptographic hash format, with the user’s consent, in accordance with the LGPD (Art. 7, I), or based on legitimate interest (item IX), respecting the data subject’s rights. Data use occurs within the same provider’s environment, without the original document circulating among different operators.
This model allows for faster onboarding while maintaining the controls required for PLD/COAF.
2. Dynamic risk-based validation
Not all users require the same level of verification. Therefore, adjusting the depth of KYC based on perceived risk improves the experience for low-risk users and allows you to focus resources on more sensitive profiles.
Some common practices in this approach include:
- Proof of life only when necessary
- Checking restrictive lists (watchlists)
- Additional documentary checks in cases of inconsistency
This model follows the best practices of the risk-based approach, as provided for in Circular No. 3,978/2020 of the Central Bank, which deals with the prevention of money laundering and terrorist financing (PLD/FT).
3. Using history and behavior to personalize KYC
Those who have already been verified and have a good track record can be validated more quickly. Here, platforms that analyze previous data can adjust the process, avoiding repeating steps.
From this, it is possible to count on:
- Predictive analytics: quickly identify reliable profiles
- Process customization: adjusts steps based on previous patterns
- Error reduction: fewer rejections for technical reasons (such as dark photos or digital documents)
4. Speed without sacrificing safety
Combining historical data and bettor profiles reduces verification time, all without compromising security. This combination makes the process more fluid and contributes to increased approval and conversion rates.
The result?
- Less abandonment on the journey
- Improved perception of platform reliability
- Lower CAC, with better use of media budget
5. Direct impact on the operation’s finances
Let’s look at an illustrative practical example:
- Daily scan volume: 5,000
- Media spend/day: R$50,000 (average CPA of R$10)
- Current KYC approval rate: 60%
- Approved/day: 3,000 → Real CAC: R$ 16.67
By adopting practices such as data reuse, predictive analytics, and risk validation, the approval rate can reach 85%:
- Approved/day: 4,250
- Reduced CAC: R$ 11.76 → 29% savings
Considering a 15% FTD (first-time deposit) conversion rate and an average ticket of R$80, this represents:
- R$15,000 in additional deposits/day
- R$ 450 thousand/month
- Up to R$5.4 million/year, without increasing investment in media
In addition to savings from CAC, other financial impacts include:
- Higher Return on Investment (ROI): With more KYC-approved registrations and a reduced CPA, the platform’s ROI increases.
- Reduced customer support: Reducing errors and rejections in the verification process reduces the number of support tickets, saving time and additional resources.
- Increased retention and LTV: A smoother and more efficient checkout improves the user experience, resulting in lower churn and higher customer lifetime value (LTV), generating more revenue in the long run.
In short, smart verification transforms KYC from a regulatory obligation into a growth tool. By applying these concepts, you can achieve much more than just compliance and security in the verification process, but also a more fluid and efficient experience for the bettor, positively impacting your business’s profitability.
Want to apply this approach in your context?
Submit your current policies or explain how you structure your verification flow. A specialized team can provide a customized checklist and recommend adjustments aligned with the risk-based approach. Talk to an expert!
