Digital Onboarding in Banking
Banks and other financial institutions have moved their customers to digital channels for the past few years. However, it was not until the pandemic that the need for convenient and remote banking features intensified. Lockdowns and restricted mobilities worldwide have pushed individuals to engage in digital banking and contactless payments.
The challenge for banks today is equipping their systems to adapt to market disruptions. As more people use non-cash payments like tap-to-go credit cards and digital wallets, banks need to step up their digital onboarding efforts to offer their customers a quick and seamless payment experience.
Digital onboarding refers to the automated process of introducing new customers into the system, which gives them access to the establishment’s products, services, and facilities. The digital onboarding process includes the traditional onboarding procedure, but it is done in a fast, simple, and secure manner with the help of the internet.
Digital onboarding, when done right, helps in eliminating tedious tasks like filling out forms, over-the-counter payments, and submitting relevant documents. Such convenience and time-saving benefits of digital onboarding can be possible with the help of modern technology. One innovation is the Electronic Know Your Customer or eKYC process, wherein organizations can verify customer identity and develop financial profiles remotely.
Other cutting-edge technologies that can help in the digital onboarding process of banks and other financial institutions include employing digital signature and biometric authentication. Today, biometric passports or driver’s licenses are gaining popularity. They allow you to compare your ID picture with a fingerprint scan or face scan. Banks can also set up the customer’s data for identity verification with biometric technology and digital signature authentication.
Consumers want to have frictionless and safe interactions with their banks via the internet. With modern tools and technology, banks can now digitally onboard customers. To provide a satisfying customer experience, financial institutions need to be able to achieve the digital capabilities they have.
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