Post-Pandemic Era Sees Rise of Digital Onboarding and Mobile-First Approach in Financial Services
As the world slowly returns to normalcy after the pandemic, financial institutions are adapting to new customer preferences and regulatory requirements. One area that has seen significant growth is digital onboarding, particularly mobile-first approaches.
Increased Focus on Mobile User-Friendly Experiences
The rise of mobile usage has prompted businesses to prioritize mobile-first designs for their online services. Financial institutions are no exception. With more customers using mobile devices to access financial services, it’s essential to provide seamless and secure experiences.
Video KYC and Biometrics Gain Traction
To enhance customer onboarding, many financial institutions are adopting video KYC (know your customer) and biometric technologies. These innovations allow for more efficient identification verification processes, reducing the need for physical documentation and enhancing security.
Anti-Money Laundering Directive Remains a Priority
In Europe, the fifth Anti-Money Laundering (AMLD5) directive remains in effect, requiring financial institutions to implement stricter customer due diligence measures. This includes enhanced understanding of customers, beneficial owners, and their financial dealings.
KYC Process Flow Evolves with Digital Solutions
The KYC process has undergone significant changes since its inception in the early 2000s. Today, digital solutions are becoming increasingly popular, enabling faster and more secure identification verification processes.
Innovative Approaches Welcome in the Post-Pandemic Era
As regulatory bodies promote new solutions to address compliance challenges, innovative approaches like artificial intelligence (AI) and digital identity technologies are gaining traction. These advancements can help financial institutions streamline their KYC processes while minimizing fraud risk.
ID Verification Solutions Support Compliance and Customer Onboarding
Gemalto’s ID Verification solution provides a comprehensive tool for financial institutions to comply with CDD and KYC obligations. The system offers:
- Multi-channel identity document verification
- Biometric authentication
- Customer risk assessment capabilities
all in one seamless process.
Conclusion
As the world continues to evolve in the post-pandemic era, financial institutions must adapt to changing customer preferences and regulatory requirements. By embracing digital onboarding, video KYC, and biometric technologies, they can provide a smoother customer experience while ensuring compliance with anti-money laundering directives.