Financial Crime World

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Mobile-First Onboarding to Continue as Financial Institutions Emphasize Digital Verification

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As the world continues to navigate the post-pandemic era, financial institutions are expected to prioritize digital onboarding and mobile-first experiences. This shift towards digital verification is driven by increased mobile usage and the need for enhanced Know Your Customer (KYC) processes.

Liveness Detection: A Key Component of Digital Onboarding

To combat spoofing attacks and ensure the authenticity of customer identities, financial institutions are adopting liveness detection features in their KYC processes. This technology proves that a selfie taken during identification is from a live person, providing an added layer of security for mobile onboarding.

KYC Compliance: A Competitive Advantage

In addition to digital verification, financial institutions must also prioritize compliance with anti-money laundering (AML) regulations. The fourth Anti-Money Laundering Directive (AMLD4) and the enhanced fifth directive (AMLD5) have set new standards for customer due diligence and data sharing.

Biometrics: A Game-Changer in Digital Verification

The use of biometrics, such as facial recognition and fingerprint scanning, is becoming increasingly popular in digital verification. This technology can provide a more secure and efficient way to verify customer identities, particularly in mobile-first onboarding experiences.

Gemalto’s Advanced ID Verification Solution

To help financial institutions comply with KYC regulations and minimize fraud risk, Gemalto offers an advanced ID verification solution. This system uses artificial intelligence (AI) to automatically capture customer demographic data, conduct due diligence and risk assessment, and review for Politically Exposed Persons (PEPs).

The Future of Digital Onboarding

As mobile usage continues to rise, financial institutions must prioritize digital onboarding experiences that are secure, efficient, and compliant with KYC regulations. By embracing biometrics and liveness detection features, these institutions can provide a competitive advantage in the market while minimizing fraud risk.

Resources

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For more information on AML/KYC regulations and best practices, please visit our resources page:

  • FATF recommendations (as amended February 2023)
  • The Anti-Money Laundering Act of 2020 (FinCEN June 2021)
  • Sanctions and Anti-Money Laundering Act 2018 (UK)
  • KYC and eKYC in India: What is KYC as per RBI?
  • RBI Allows Video-based KYC yet (Money Life India January 2021)

Contact Us

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To learn more about Gemalto’s advanced ID verification solution and how it can help your financial institution comply with KYC regulations, please contact us today.