The coronavirus pandemic has accelerated online banking and other financial services over the internet as lockdowns, and other safety measures have restricted mobility, especially face to face interactions. However, this move is not sudden, as manybanks and financial institutions have been moving their customers onto digital channels for a few decades now.
More and more customers utilize digital channels to interact with their respective banks. As such, financial institutions must leverage this opportunity by offering digital customer onboarding to remain competitive.
Digital onboarding is an automated process that introduces customers to the system and gives them access to the financial establishment’s products, services, and facilities. The process is similar to the traditional onboarding procedure but in a faster, more straightforward, and more secure way via the internet.
The digital onboarding process uses the institution’s online platform,which might either be developed in-house or outsourced from a digital onboarding platform.The traditional procedure that takes days and weeks to complete can now be done in a few minutes possible due to modern technology and the Electronic Know Your Customer process of eKYC.
The eKYC process enables organizations to verify their customer’s identities and develop financial profiles remotely. KYC in banking refers to ID, face, and document verification using digital signature API. Accordingly, banks must comply with KYC regulations to prevent criminals from committing illegal tactics such as fraud, money laundering, terrorist financing, etc.
There is also the need to have robust security measures to enable fraud prevention, especially for protecting cryptocurrency digital wallet, as many people use digital wallets for their financial needs. Digital onboarding prioritizes convenience: therefore, banks must move past the traditional business models and implement faster procedures if they want to stay on top of the competition.
This infographic from LoginID discusses digital onboarding in banking. Read on to learn more.