Designing Client-Centric Digital Customer Onboarding Solutions for the Banking Sector

1. Designing Client-Centric Digital Customer Onboarding Solutio Sector 08 Feb  By Jay Raol |  In Customer Onboarding | The digital transformation has been setting new rules for customer service across a large fraction functionalities. Even in the recent past, customer onboarding largely remained as traditional face-

2. One of the key reasons was to build stronger emotional attachments, gain trust and nurture long- with the customers. The emergence of digital transformation and end-to-end digital services in banking has put press institutions to do more for the sake of convenience for today’s banking customers. Replicating an seamless customer experience with a focus on speed, standardization and simplicity is no easy fe environment. As the banks were caught in the conundrum of whether to digitize customer onboarding or not, th pandemic acted as a catalyst thrusting the banks towards the inevitable. Banks could no longer p embracing full-scale digitalization.   The Current Status of Digital Customer Onboarding in t Sector   The digital customer onboarding in the banking sector was mainly driven by two factors; the pa money laundering (AML) policies. Depending on where you live, both factors may not have had a the way you bank. Despite threats of penalties and demands from customers, banks are still slow customer onboarding practices. The reasons behind the slow change may have to do with three main factors:

3. The potential loss of customer loyalty Lack of knowledge and experience in designing a client-centric digital customer onboarding p Retaining access and control of cybersecurity systems and protection of customer data In some companies or countries, there is also the added concern in the reduction of labor needs. putting more people unemployed doesn’t seem like the best way to improve and retain custome result of this philanthropy is continued archaic manual processes and almost non-existent global As much as banks have embraced automated ID veri?cation, document veri?cation is still a burnin area of focus in the new Bank Secrecy Act (BSA). Along with the focus on Ultimate Bene?cial Own international accounts, the banking sector needs to do more with global ID veri?cation and digital identity management. Though some banks have made strides into digita unfortunately, their e?orts weren’t very e?ective. However, we can use their setbacks as the learn banking industry. Complex online process Partial digitalization makes customer visits to branches necessary A paper-based ID validation system Failing to adhere to legal/regulatory AML compliance Lengthy navigation platforms that may lead to a higher abandonment rate Lack of multi-channels

4. If you have ever been to a bank recently, you can attest that there are banks still making these sa And if you wait long enough, you’ll probably witness an employee skipping elements of Know Yo speed up the process. As much as banks don’t want to admit that dirty secret, it happens because Humans get tired, hungry, and have problems and needs. We may not want to face the reality tha is a threat to digital customer onboarding, but we have to address it. Because it is in the human fa setbacks arise. Banks may not have provided su?cient KYC training or oversight. HR was ill-equipped to hire cybersecurity, marketing, and digital experience professionals. Bank executive management didn’t make proper use of consumer data for customer onboardi Or it can simply be Johnny Teller just not doing their job as they are supposed to. Whatever the deep cause behind these early failures, as a whole the banking industry must take Instead of treating them as failed customer onboarding solutions, pinpoint where the client onboa and address potential gaps in the process and its implementation. Note, the client onboarding pro hundred times and be the most advanced ID validation system on the planet, but if the implemen then those deep-seated concerns need to be addressed ?rst in the house.   Bene?ts of Improving Digital Onboarding Solutions  

5. All customers will thank you Though there still are the rare birds who love visiting their favorite bank representative to chat. Mo community wants that home delivery service treatment from their banks that they could get ever the customer gives you money, why shouldn’t they get the service they deserve. In all seriousness, improvements in customer onboarding as a whole should have been made bef when performing in-house tasks, the client onboarding process wasn’t completely standardized. con?rmation when dealing with high-risk clients, but what exactly were some banks’ criteria for d Again, we go back to human error and biases which opened the door for fraud and money launde Digital onboarding reduces the potential for human error, bias and improves customer safety and potential outcome of a smaller workforce, it also means better accountability. Supporting actors o will now have fewer people and untraceable actions to hide behind. More bene?ts of improved di onboarding solutions are:-   Reduced Operating Costs Going paperless for years has the theme of being environmentally conscious, but most businesse of lower operating costs. It’s the biggest win for both customers and the banks. Aside from the ob protection bonus, it also reduces the need for customers to walk around with ?les of documents f transaction.  

6. Transparency in Operations Digitalization will automatically standardize key aspects of online KYC veri?cation and reduce inci and errors. A reduced paper trail doesn’t mean complex online procedures. Machine learning-pow guided AI would still have the ?nal say in processes like online KYC veri?cation and each change recorded. Therefore, there are fewer chances for chicanery.   Stricter Adherence to AML Compliance Regulations As of late 2020, there were banks and ?nancial institutions that were still not AML compliant and f Repeat o?enders seem to have disregarded any interest in AML compliance. Standardized digital with stringent oversight can put a dent in their unsafe and illegal practices while improving custom employee protection.   Better Digital Identity Security and Management Cyberthreats are a major concern for not only the ?nancial industry but the global economy as we the banking sector is a matter of importance to all banking and non-banking citizens. Priority mus secure digital identity security systems and restricted databases that require veri?ed identity pass   Improved Customer Onboarding

7. Imagine 24-hour banking without limits! It is possible and though some banks o?er 24-hour acces of in-house visits to ?nish your transaction. Also, some of these online processes are longer than v Creating better digital customer onboarding solutions should cut back on lengthy sign-ups, meet veri?cation requirements and improve customers’ control over their account access.   Designing Client-Centric Digital Customer Onboarding Keeping the focus on a frictionless customer experience is a smart start in designing client-centri onboarding solutions. Walking a mile in the customers’ shoes allows banks to better understand w goes through when using their services. Yet in early adaptations, banks eschewed this idea and designed the digital onboarding process w organizational operations in mind. Thereby creating the incomplete and ine?cient client onboardi today. To fully correct these issues in digital onboarding, banks have to be prepared to make drastic cha operations, human resources, digital identity management systems, and what’s considered real-t veri?cation. There must be an open-minded approach to technology, education, and making organizational c client-centric digital customer onboarding solutions is easy with the right technical expertise and be just as easy with an ID validation system from IDMERIT.

8.   Here is how IDMERIT’s IDMkyX platform can be a part of centric digital customer onboarding solutions:   Automated ID Veri?cation in Digital Onboarding Going digital does not mean emulating the traditional onboarding processes in a digital platform. the lengthy, complicated paper-based forms in a web or mobile interface. To apply a customer-ce approach keep everything short, simple, and easy to use. Keep the whole client onboarding process under 5 minutes. Limit questions to a minimum and avoid repetition Inform customers why data is required and how it is used to gain their con?dence Introduce Smart e-Forms with guided-snippet based ?ow, supported by automation of IDMaut data entry Automated information saving functionality to give customers the option to drop out in the mid and restart at their convenience.   Standardized AML Compliance for B2B Client Onboarding Process

9. The basics of digital customer onboarding in the banking sector need to be overhauled. In this gig client onboarding checklists should account for enhanced due diligence as part of B2B KYC requ B2B client onboarding can be harder to correct and address once the damage is done. Naturally, B2B clients have a longer onboarding cycle which leads to greater frustration for all par leadership roles, AML compliance requirements, and laissez-faire attitudes towards UBO’s always losers when it comes to B2B client onboarding. Start with a conversation using IDMlive to discuss with your B2B client. Start with a ?nancial advisor for business development. New or old, discuss future goals Understand the business organizational structure and be prepared for signee changes Discuss the legalities of the business structure and AML compliance requirements Use independent oversight in all document veri?cation and global ID veri?cation Take the necessary steps to assess risk with IDMtrust which doesn’t need their Personally Iden (PII) to check their risk score. Do regular ?nancial check-ups to stay up-to-date on B2B client changes and reduce repeat re   Mobile ID Veri?cation With An Integrated Omni-channel Experience Mobile phones aren’t the only tools banks need to use in their quest for a more multi-channel laptops make that list as well. Anything with a screen can be used by customers to access their a with your service.

10. Neglecting mobile ID veri?cation when at 55% mobile has the highest market share of digital d counterproductive. Introduce self-service models across multiple platforms to empower customers towards quick speci?c problems Mobile optimized ID validation and document veri?cation for instant submission and automate Validate ID anywhere by using IDMsocial for online ID veri?cation through social media Include smartphone biometrics into mobile ID veri?cation Increase Global Collaboration for Powerful Digital Identity Security Cybersecurity cannot be overlooked in a discussion about online ID veri?cation, global ID veri?cat management. Global collaboration between government regulators, corporations and the bankin solid support system for digital identity security systems. By increasing communication and share can have a stronger foothold on organized crime and money laundering. Performing an automated global ID veri?cation by online ID veri?cation from any national ID da Using modern technology such as IDMdevice to verify device used and validate ID Access to all up-dated global watchlists Improved AML compliance checks Integration with the credit bureau for document veri?cation and to validate an ID Embrace the Power of Data and Analytics in Digital Identity Management

11. Maybe banking heads needed to do more robust research when it came to ?nding out exactly wh preferences are. Current systems re?ect a certain disconnect with B2C customers and too much ? clients. Paying attention to the data makes segmentation and engagement easier. It allows banks to unde and how their customers are interacting with them and should be the basis of which any client-ce onboarding process. Require a veri?ed identity pass for data access. It could be a biometric scan or any unique person Include governmental or independent oversight in digital identity management Adhere to BSA/AML compliance standards for personnel management which includes robust tra oversight Use consumer transaction records and behavior in the ?ght against fraud and money laundering   Closing Though the pandemic and AML policies have accelerated the pace of digitalization pushing bank traditional boundaries, it doesn’t mean the industry was unprepared. Cyberthreats and the rise in banking sector on high alert to potential threats and poised to make changes. However, banks co innovation and ?nancial service o?erings that o?ered the same level of service in the traditional se environment.

12. As great as this step was for digital services, banks didn’t truly leap full digital onboarding solution many customers, it seems a little too late and not wholly customer-centric. Major issues like mobile ID veri?cation, global ID veri?cation using watchlists, regulatory reporting employee online KYC veri?cation training, were not embraced as necessary to an e?cient client o Implementation seems to be the main culprit behind these onboarding failures and AML non-com Therefore, for the good of the banking sector and its customers, perhaps it would be best if digita management and security were left to the professionals. That way, banks can still provide a versatile customer onboarding experience, reduce the risk of f anywhere with the backing of IDMERIT’s IDMkyX platform. Contact us today for a client-centric solution to digital onboarding.