A racehorse training operation is no different to any other business. Healthy owner relations starts with providing a smooth on-boarding process when making a sale, and making it easy for your new customer. But it is equally important to verify who your new owner is and their address - should the worst case scenario (bad debts) eventuate.
Often these two objectives are competing in nature - increase the requirements on the new Owner when making a sale can result in them running away. Loosening those requirements can result in untrustworthy or ineligible owners being accepted.
One way to help you achieve the right balance is to use an identity solution to streamline the capture of customer information and verify your new Owner's details via trusted government sources.
Here are six reasons to use identity verification in the sale of shares in your horses, before you accept new Owners into your stable.
1 Australian Rules of Racing compliance
By verifying the identity of new Owners you can establish proof that your customers are real and over the age of 18. You have an obligation to undertake this due diligence to avoid any suspect individual becoming an Owner, under the Australian Rules of Racing.
2 Increased ability to collect debts
By verifying the current residential address of new Owners, you have greater confidence that debt collection notices (if required) are delivered to the correct address or indeed in person.
3 Reduced fraud
Identity solutions comply with Anti-Money Laundering (AML) regulations, something all of us in the racing industry should comply with. Although laundering funds (earned through illegal activities) via racehorse ownership might not be the smartest way for criminals to clean their money, it is possible.
Identity solutions will notify whether your new customer is on a Politically Exposed Persons or Interpol database, or on a Fraudulent Activity register. If they are, you may contravene Australian Rules of Racing AND Anti-Money Laundering regulations by accepting their ownership in a horse you are selling. Not to mention the fact that you don't want that kind of person involved in your stable!
Additional options such as a Police Records check might also be of use, but they do present more privacy challenges and may turn away Customers.
4 Streamlines the ordering process, making it easier and more convenient
Many new Owners find paperwork to be a burden, or downright annoying, when making a purchase.
However, with identity verification solutions, new Owners can complete an online form and verify their identity and residential address – in a single step.
This eliminates tedious paperwork and simplifies the ordering process. As a result, your business can become both diligent and customer-friendly to be well-placed ahead of your competition.
5 Building customer confidence and rapport
Due to the element of increased security that comes with the state of the art verification solutions, customer trust in your business will solidify. They will feel confident that you are dedicated to safeguarding their identity and that each other co-owner in the horse you are selling has gone through the same rigorous verification. Imagine being a co-owner in a horse with "make believe" or fraudulent owners!
6 Reduced horse registration errors
Part of the details that identity verification captures is the Owner's residential address and date of birth.
By verifying those details against a range of government and independent data sources, you can catch any errors that may have been entered during their personal data entry.