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 user-friendly digital 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.

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 before they even test your services.

In the UK for example, more than one in three (39%) new banking customers abandon opening an account if onboarding takes too long and just over a third (34%) abandon because the process 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 important criteria in choosing a bank.

Every Customer Journey Begins With 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. 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 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 app which the customer uses 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.

All of this information is verified online by the bank in real-time. When more 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. See how it works:

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 find out how you can digitally streamline the onboarding process of your financial institution, explore HID Identity Verification or download our related white paper on Digital Transformation in the Data Economy.

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Ondrej Valent is a Sales Director of Consumer Authentication within HID Global and has more than a decade of experience in IT Security. Leading the Global Sales Team and Sales strategy. Ondrej has profound technical background and has extensive experience with Financial Institutions, advising on Regulatory initiatives, Operational Risk, Governance and Compliance bringing a wealth of knowledge on how organizations can create greater user experience while meeting their security requirements. Prior to HID Global Ondrej led the sales strategy at FireEye, Gemalto and SafeNet.