Customer-Friendly Digital Onboarding With Advanced Identity Verification Technologies

What’s the key to winning new business in the banking industry? Increasingly, it’s a customer-friendly onboarding process that also makes it easy to gather vital customer information, conduct identity checks and fully comply with mandatory KYC (Know Your Customer) regulations. And with the recent worldwide quarantines, getting to KYC remotely is more important than ever.

Onboarding is often tedious and time-consuming. However, the undeniable fact is that without a fast, seamless identity verification path, you risk losing potential customers at “hello.” A recent Deloitte study shows that 38 percent of new banking customers abandon opening a bank account if onboarding takes too long or requires more information than what they’re prepared to disclose. These findings go hand-in-hand with the fact that “easy enrollment and login” are the most essential criteria in choosing a bank for at least 26 percent of customers.

Every Customer Journey Begins With Digital Onboarding

Onboarding is the critical entry point for a customer’s entire financial experience with a bank. New technologies provide opportunities for positive, frictionless onboarding experiences in mobile, remote environments which form the foundation for the entire institution-customer relationship. At HID Global, we recommend adopting a 3-pronged approach:

  1. Capture: Leverage mobile technology including phone apps to streamline the capture of new customers’ identity documentation
  2. Verify: Use online, multi-layered verification to review customer submissions
  3. Complete: Incorporate customer due diligence reporting and the secure storage of customer identity information

Digital Onboarding Leverages Automation and Sophisticated Technologies

The process for digital onboarding looks something like this:

First, the business logs into a web portal for HID Verification Service, a verification app that runs advanced technical checks against customer identity documents to confirm there is no evidence of forgery or tampering.

Next, the bank sends the customer a link to download the HID Verification Service app. The customer then uses the app to capture and submit digital photos of standard identification documentation, such as a driver’s license and a utility bill for proof of address. After reviewing their personal information in auto-populated fields, the customer securely submits the information to the financial institution. The collected information is verified by the bank online and in real-time. When additional information is needed from the customer, the technology triggers a push notification. The IAM (identity and access management) system is made even more secure by the integration of advanced biometric factors. These may include fingerprints, facial comparisons and liveness tests such as eye blinks.

After all customer data is reviewed and approved, the app generates a customer due diligence report with all customer ID information and securely stores it online.

HID Verification Service mobile app

Benefit From Simple and Secure Customer Onboarding Paths

A streamlined, fast, easy-to-use onboarding process is what the customer wants — making the benefits of automated, digital onboarding clear. These include:

  • Reduced abandonment
  • Greater customer satisfaction
  • The opportunity to build accounts
  • Enhanced competitive advantage

Further, quick and easy integration enables swift compliance with KYC regulations while reducing identity theft and account creation fraud.

To learn more about digitally streamlining the onboarding process of your financial institution alongside the use of advanced technologies, watch the webinar with Finextra.

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Olivier Thirion de Briel is Global Solutions Marketing Director for the banking sector at HID Global, leading the banking strategy and marketing for IAM solutions. Prior to joining HID Global, he managed the cloud strong authentication offering at VASCO Data Security. He previously managed Oberthur Technology’s strong authentication product line and founded two mobile companies. He holds an MBA from INSEAD, as well as an MSc in computer and electronic science.