Thorough and efficient identity checking at the onboarding stage is crucial for all organisations in the financial industry. All customers must be checked and verified to comply with KYC and AML regulations and identify potentially fraudulent activity.
The regulations for KYC and due diligence make the onboarding process much more challenging for the financial sector. But speedy onboarding is crucial for any organisation in the financial industry, not only to satisfy legislation, but also to attract and satisfy the customers themselves. The onboarding process is fast becoming a stand out client service differentiator, those firms that ignore the latest developments are likely to come up short against their competitors.
Customers now expect fast and convenient onboarding when they begin with a new organisation. Having an efficient process sets the tone for the entire relationship between customer and organisation and will contribute to client loyalty. Customers expect a consumer centric and time saving approach, and this means that onboarding must be quick and comfortable, ideally carried out online only.
In a report carried out by Signicat in 2016, 2000 bank account holders were questioned about the onboarding process. 39% had given up the process part way through due to lengthy delays, and 34% due to being asked to provide too much information. 55% of those surveyed said that they would be much more likely to apply for an account if they knew the process could be carried out completely online.
Clearly, finding a balance between meeting regulatory requirements and satisfying customer needs is necessary.
Traditionally, identity verification is a lengthy and inconvenient process for both client and organisation. Checking documents manually is slow, expensive and leaves room for many human errors. Using digital identity verification solutions allows the process to be carried out entirely online and is more efficient, effective and accurate; providing a better service for clients, and therefore less application abandonment.