In this day and age, technology has influenced every part of our daily life. The situation is similar when it comes to the digital banking system. Customers want the banking system to shift from conventional onboarding styles to digital and quick onboarding techniques.
It’s very critical for the banks as onboarding is the first opportunity that banks get to win over new clients. The whole client-business relationship depends on this process. There are multiple advantages of employing e-KYC onboarding in banks.
What is eKYC Onboarding?
eKYC Onboarding is the process by which businesses confirm consumer identity using video conferencing and other digital means. This occurs when customers and the bank are engaging for the first time. This verification method seeks to prevent having ties with persons or firms involved in money laundering or criminal activity.
Businesses request eKYC docs such as an ID card, passport, driving license, and other government-issued documents for customer identification.
Real identification includes verifying the identity of the individuals and businesses making the contractual request. This process involves the use of paychecks, tax documents such as IRPF, or certificates of association.
This technique is used for initial engagements and modifying the identity data. The term eKYC onboarding is also known as digital KYC or digital client identification. The digital onboarding program employs videoconferencing for identification
Advantages of eKYC Onboarding
An Instant Solution
The eKYC onboarding process is totally automated and available online. This implies that KYC is sent in real-time without any human input. The paper-based KYC procedure might take days or weeks to validate. However, the digital KYC compliance system just takes a few moments to check and issue.
Minimize Client Abandonment
Banks are under pressure to grow their onboarding numbers. The digital onboarding experience is critical in generating goodwill and a loyal client relationship with the bank. As per the Digital Banking Report (2017), 43 percent of customers expressed low satisfaction levels with the onboarding experience. Saying that they had to enter the data repeatedly. And the accuracy of the customer acquisition process was also low.
As a result, eKYC is one of the best methods for overcoming the restrictions listed above. It highlights the onboarding program of banks, regardless of how many platforms they employ or when they use them. Verified data is provided and linked across channels to ensure clients have constant access to the most up-to-date facts.
Mitigate Fraud with eKYC Onboarding
Banks have always had to deal with financial losses because of fraudulent activity. Nevertheless, they now face enormous hurdles in efficiently tackling organized digital crime, especially when working with the old legacy systems.
As financial deposits and transactions have moved to the internet and virtual platforms, digital fraud in the onboarding process has evolved to exploit the system. With the evolution in technology banks will have access to multiple resources to fight scammers, such as eKYC solutions. Document verification services are also used for this purpose.
Instead of just authenticating customers when they log in, systems continually monitor accounts to ensure that they are not acting suspiciously. These methods include optical character recognition (OCR), facial identification, liveness detection, and fraud protection. This method helps banks in enhancing system security and minimizing fraud throughout the customer acquisition program.
Positive Customer Experience
In banking or any other financial company, onboarding is the most straightforward approach to show people what kind of customer experience they may expect from the bank. According to a Finextra survey, 40% of customers skip bank onboarding procedures due to the time necessary to complete the essential stages or the requirement to submit too many personal details.
Data from the report shows that the eKYC onboarding process assists banks in improving client satisfaction. Customers want digital solutions so they can verify their identities online and which will quicken the onboarding stage.
A Simple and Swift Solution
Today’s banking circumstances and preferences are changing. The eKYC procedure reduced the number of direct meetings at the bank. Biometric technology is now available to bank service providers.
Banks employ video conferencing to check consumers’ identities. Consequently, the onboarding program does not take a lot of time, which benefits clients and the banks as well.
Improves Brand Image
In order to resolve financial exclusion concerns, improvements in the eKYC procedure are critical. Innovations in eKYC procedures and standards include advancements that make it simpler to identify and authenticate clients, improving accessibility and usage of the services. Progress includes regulatory changes such as value restrictions and the use of electronic papers and signatures to complete transactions. Using these advances allows banks to gain a significant competitive advantage in the market.
The implementation of eKYC into business operations promises to produce huge increases in staff productivity, resulting in considerable revenue growth for the industry. Furthermore, eKYC allows bank workers to conduct client support tasks more quickly, efficiently, and accurately.