The COVID-19 pandemic has wreaked havoc on our lives, and we are in the midst of a major crisis on all fronts. It is understandable to believe that the epidemic will be a defining moment in modern history. Customers who previously opposed online banking have been forced to accept digital banking apps as their new default as a result of the present pandemic. Customers are less inclined to return to physical banks as they understand how convenient it is to bank digitally. Digital KYC ensures the integrity of a transaction and allows a bank to create a trustworthy relationship with customers.
The enormous potential of digitization is gradually being recognised by financial organisations. We can see the development of internet banking operations and the loss of traditional branch banking activities as a result of the COVID problem. The need for financial institutions to become digital over old paper-based operations was underlined throughout the COVID pandemic’s customer onboarding process.
Organizations with agility can respond to changes at the pace of information with the help of digital customer onboarding. KYC in banking is now using a digital customer onboarding process. In only a few minutes, financial institutions may sign up their customers, open bank accounts, complete a loan procedure, and complete their remote KYC.
- Challenges faced during Digital Customer Onboarding
The deployment of digital customer onboarding systems is fraught with difficulties. Organizational culture, for example, can be a stumbling obstacle, especially in banks and financial institutions with well-established systems. Choosing the proper partner, one who is compliant with these ever-changing standards and adaptable, is always a challenge. Before implementing any new technology, banks and financial institutions should make sure that any suggested modifications are compliant with both current and future requirements.
Because paper-based methods are frequently insecure, greater digitization in onboarding is also driven by security concerns. Digital KYC provides increased security, but compliance teams should study any suggested solution and ask questions about where servers are located, how data is stored, and what encryption standards are utilised, among other things.
- Digital Customer Onboarding Benefits
- As a result of digitization, all or parts of the onboarding process can be automated, lowering costs and enhancing compliance.
- The process has been streamlined and made more efficient.
- Financial Institutions’ Workflow Should Be Reduced
- Digital KYC due diligence takes less time.
- Customer time is saved.
- An easy-to-follow onboarding method
- With a faster turnaround time, digital customer onboarding helps improve business and client interactions.
Financial institutions must move today to implement smart solutions such as digital customer onboarding, digital banking, digital lending, and mobile banking solutions to prepare for the future. Financial institutions will have to work alongside a recovery strategy as business restarts. Some banks and financial institutions have already begun to implement digital banking services, and the client experience is being redefined.
With a new OCR environment that interfaces seamlessly with your existing technology, Accura Scan is the market leader in digital KYC. You can now perform user authentication and digital customer onboarding at the highest levels quickly and efficiently with a feature-rich ID card reader. To get in touch with us you can visit our website or send in your request via email at connect@accurascan.com