Digital Onboarding in Banking

Since the last few years, banks and other financial institutions have been moving their customers to digital channels. The pandemic was the catalyst for the increased demand for remote and convenient banking services. Individuals were pushed to use digital banking and contactless payment methods because of restrictions and lockdowns in many countries.

Banks today face the challenge of adapting to market disruptions. Banks must increase their efforts in digital onboarding to provide seamless payments to their customers as more people use non-cash payment options like digital wallets and tap-to-go credit cards.

Digital onboarding is the process of adding new customers to the system. It gives them access to the products, services, facilities, and other benefits. Digital onboarding includes traditional onboarding but is fast, simple and secure with the aid of the internet.

When done correctly, digital onboarding can eliminate tedious tasks such as filling out forms and over-the-counter payment requests and submitting documents. Modern technology can make it possible to have digital onboarding with such ease and time-savings. Electronic Know Your Customer, or eKYC, is a new technology that allows organizations to verify customers’ identities and create financial profiles remotely.

KYC authentication and biometric authentication solutions are a few examples of cutting-edge technologies that banks and financial institutions can use to speed up the digital onboarding process. Biometric passports and driver’s licenses have gained popularity. You can compare your ID picture using a fingerprint scan and/or face scan. Banks can also store customer data for identity verification using biometric technology.

Consumers expect to be able to communicate with their banks securely via the internet in a frictionless manner. Banks can now digitally enroll customers using modern technology and tools. Financial institutions must have the digital capabilities to provide a positive customer experience.

Below is an infographic from LoginID that discusses digital onboarding in banking to learn more information.