Gone are the days where the customer had to be physically present for verification. At present, the arrival of digital banking has changed the verification process rapidly. Customers prefer not to be physically present and utilise smartphones instead. But they have to upload their documents like photographs, government-issued ID and video proof of life and self. And due to the advancement in technology, you can achieve all of this in real-time. Additionally, the office personnel on the other side must verify all the documents.
Document verification is a process where documents are verified to check their authenticity. In this process, the person on the other side checks the personal data such as name, age, address and various document features like watermarks, fonts, carrier materials and stamps. Additionally, officially issued documents like driving license, ID and other state or federal documents are verified. Furthermore, due to the digital onboarding process, many customers prefer fast and digital bank accounts.
Read on to learn the benefits of digital verification of documents or EKYC in the digital onboarding process for banks.
1. Swift Process
As mentioned earlier, KYC data eliminates the need for manual intervention. At present, EKYC services are entirely automated online. The paper-based KYC takes days or maybe even weeks for the documents to get verified, whereas EKYC takes only a few minutes for verification and issue.
2. Reduced Failed Client Acquisition and Acquiring New Customers
Nowadays, banks want to improve the rates of acquisition, so they utilise the digital onboarding process to attract new customers. As per the Digital Banking Report of 2017, 43 per cent of people may switch banks to avoid entering the information multiple times, especially when it comes to moving from one channel to another, where the accuracy is low and not near real-time. And this has resulted in a low level of customer satisfaction. But, EKYC is the perfect solution for overcoming these limitations.
3. Digital Onboarding Reduces Fraud
During the traditional systems, banks have faced a lot of challenges and confronted a lot of fraudulent activities. It has also led to the loss of revenue. But, since customers use digital and internet platforms for banking transactions, the digital onboarding process eliminates fraudulent data from the system. Besides, due to the more banking resources and technological advancement, banks can battle fraudsters effortlessly with the help of EKYC in the digital onboarding process of banks. Banks are continuously monitoring the accounts of the customer and looking for any strange behaviour. They also check if the account owner is only using one device. Some of the technologies that detect the authenticity of the customers are fraud detection, facial recognition, and OCR. Using these technologies, banks reduce fraud and increase the security of the system.
4. Improves Customer Experience
When it comes to banks, their onboarding process depicts the customer experience you can expect. As per a 2019 report, 55 per cent of customers responded that they would likely apply for a 100 per cent onboarding online process with identity verification for EKYC, and 52 per cent said they would purchase additional services. It illustrates that EKYC helps in improving the bank’s customer service with the digital onboarding process. As mentioned earlier, customers are moving towards digital and would rather have the identity and document verification online. Hence, it is time for banks to accelerate this process.
5. Faster and More Flexible Access to Banking Services
The EKYC process has simplified verification since bank service providers are now utilising biometrics. The remote way of identity verification of customers is through video conferencing, and it is not only convenient to customers but also to the banks.