COVID-19 has accelerated the push to digitalization as more consumers have started to do their daily transactions online. The convenience and ease of doing transactions are what will make them stick to it even after the pandemic is over.
The pandemic has made it clear that digital is here to stay and will only increase as banks promote safe distancing via offering touch-free banking alternatives that can be performed without visiting the branch. Consequently, banks will have to now think about how do they provide services online such as origination, account opening, and onboarding. In this #newnormal banks need to redefine their processes and strategy to serve their increasing digital-first customers.
At Tagit, we see a massive demand from around the region for digital onboarding. Banks are speeding up of rolling out digital initiatives as they now have to service the increasing number of consumers who have moved from doing physical transactions to online due to the pandemic. Also, as new neo-banks and fintech enter the market with point solutions and seamless experience, it means the incumbents have to step up their game and offer a seamless experience across all devices and channels to their customers.
As per a recent study by Celent, more banks are expected to increase their IT investments for customer onboarding and product origination.
But what consists of a successful digital onboarding workflow?
Seamless Digital Onboarding Journey
Below is a typical customer journey providing the customer’s experience – from the initial touchpoint of starting the application process through to the process of being onboarded with a product and get into a long-term relationship engagement.
Digital Onboarding Components
The different components required to be orchestrated together to formalize an efficient and seamless Digital Onboarding Process for a financial institution are:
- Digital Identities
Digital Identities are Unique Digital Identifier which verifies the credentials of a person from government records. Many countries have already adopted or are in the process of adopting Digital identities. A case in point is Singpass Digital from the Singapore Government and Aadhar Unique Identification from the Indian Government.
Countries have also adopted along with the unique identifier, individuals’ fingerprints, voice biometrics, or iris scans biometrics captured data to be verified as part of the onboarding process, thus confirming the identity of the person.
- Facial Authentication
Authenticating a customer through confirming/matching the facial attributes (taken through a selfie) to the picture captured from documents provided by the customer provides one more way of verifying the customer details. The process involves doing facial identification using several facial vector points and even doing Live detection as part of the process.
- OCR/ NFC Technologies
Providing OCR (Optical Character Recognition) or NFC capabilities so be able to extract maximum information from the document or digital id supplied by the customer, in turn, reducing the manual input efforts for the customer.
- Real-time checks against Duplicate, AML, or Blacklist databases
Critical components of digital onboarding a customer are to be able to perform real-time de-duplication, AML, and blacklist database checks to confirm the customer being onboarded is genuine.
- Blockchain eKYC database
In the future, the eKYC database on a distributed ledger or blockchain can serve as the centralized database that each entity connected as a node be able to verify customer credentials avoiding duplicities. The database can capture the biometrics credentials for the customers OR can even become repositories for AML or Backlist database.
Digitally Onboarding a customer will become a critical requirement for banks and financial institutions going forward to align and meet the expectations of the digital-first customers. Both the mushrooming digital banks and traditional financial institutions will need to formulate a strategy and devise solutions that best suit their landscape.
MobeixTM Digital Onboarding, helps banks to expedite the customer onboarding journey by simplifying and streamlining the entire process by using the latest biometric technologies, capturing accurate information, adhering to regulatory requirements, and optimizing operational efficiency.
Our solution helps banks to offer a seamless onboarding experience to their customers by automating the end-to-end process, thereby enhancing customer engagement.