Imagine opening a bank account minutes from home, without documents and any hassle. That’s the power of digital onboarding. The simplified process uses advanced digital onboarding solutions that simplify everything from filling out forms to digital identity verification. For banks, these solutions ensure faster and more secure transactions while increasing customer satisfaction. The entire digital onboarding process aims to create a seamless experience and replace traditional banking with innovation.
What is Digital Onboarding?
This is an off-site customer verification that a new customer has to complete before opening a new account. Digital identification is already widely used in the financial industry and other organizations since it is mandatory for some of them to conduct identification of clients according to the Know Your Customer (KYC) rules. Essentially, the following procedures are common for most companies and they entails the use of forms, biometrics, and background check. Implementing a digital onboarding process will make it more effective and easier for you and your customers.
How Does a Digital Onboarding Process Work?
The general process of customer digital onboarding is as follows
- The first identifiable document which should be presented is a legal birth certificate that is recognized by a government authority like a driving license, ID card or passport among others.This process is also called document verification. This involves scanning the front and/or back of the document by extracting information using OCR or NFC technology. It also includes an anti-fraud module that detects possible fraud or modification of these types of documents.
- In the second step, biometrics are used to analyze the unique characteristics of each person that distinguish them from others. This step is called face recognition and a personal photo of the person undergoing the process is taken to ensure that the image in the document matches the photo taken. Facial verification still includes an anti-fraud module known as liveness detection. It ensures that the process is controlled and there is no attempt of fraud.
Why Switch to Digital Onboarding?
Digital onboarding has become the industry standard. This can improve customer service while increasing company profits and improving profitability. When a new customer joins, they can access the company’s services and products, which is the ultimate goal. Below are some of the main benefits of digital onboarding solutions
- The digital onboarding process can often be completed in minutes as compared to many traditional onboarding methods, which can take up to three weeks.
- It provides a customer-centric approach. Understanding customer needs leads to better interactions between customers and the company.
- The digital onboarding process can enable companies to reach customers worldwide, not just local customers.
- The digital onboarding solutions for banks are secure and meet industry standards to ensure high quality.
- Digital onboarding is more effective than manual methods, which can reduce the time employees spend on it. This can be economical
- Digital KYC identity verification can reduce human errors as compared to manually entering documents or information.
- Digital onboarding solutions are simple and easy to use
Challenges and Prospects in Digital Onboarding
While digital onboarding like any transformational technology, has undeniable benefits, it comes with challenges that must be carefully managed.
Digital onboarding is always at the forefront of security practices. Customers want the convenience of digital platforms but are increasingly concerned about the use of their personal information. Companies should take the right path and ensure human rights without violating privacy policies. At the same time, challenges arise from the constant change of information protection policies at the international level. Therefore, organizations operating across borders face challenges. The sophistication of digital platforms also introduces adversaries with new-age fraud tactics. Onboarding platforms need to be equipped with tangible fraud detection, mitigation strategies, and some cognitive technologies, to stay one step ahead of fraudsters
Final Thoughts
In conclusion, the immense potential of digital onboarding can best be harnessed with a strong understanding of its best practices and challenges. This understanding is the robust strategy that not only optimizes digital identity verification but also forms the backbone of lasting customer relationships.