Mobile Adoption Drives Demand for Digital Onboarding Experiences

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As the world continues to navigate the post-pandemic landscape, one trend is clear: mobile adoption has accelerated, and businesses must adapt to meet customers’ evolving preferences. Financial institutions are no exception.

Prioritizing Digital Onboarding Experiences

The rise of mobile-first strategies has prompted banks and financial institutions to prioritize digital onboarding experiences, including video KYC (video identification) and biometric authentication. This shift towards a more streamlined and user-friendly approach is driven by the need to stay competitive in an increasingly digital market.

Enhanced AML Directives

In Europe, the fifth Anti-Money Laundering Directive (AMLD5) came into effect in January 2020, introducing stricter Customer Due Diligence (CDD) requirements. Financial institutions must now implement enhanced due diligence measures to minimize risk and improve understanding of customers, beneficial owners, and their financial dealings.

Innovative KYC Approaches

As regulations evolve, financial institutions are exploring innovative solutions to stay ahead of the curve. Biometric technologies, such as facial recognition and fingerprint analysis, are being integrated into digital ID verification processes to enhance security and efficiency.

Compliance Challenges

However, local and regional regulations pose challenges for biometric adoption. For instance, the General Data Protection Regulation (GDPR) in the EU and the California Consumer Privacy Act (CCPA) in California have raised concerns around data protection and privacy.

Gemalto’s ID Verification Solution

To help financial institutions comply with CDD and KYC obligations, Gemalto offers a comprehensive solution that includes digital capture of customer information, multichannel identity document verification, biometric authentication options, and risk assessment features. The AI-powered system learns from data, increasing onboarding rates and minimizing fraud risk.

The Future of Digital Onboarding

As the demand for seamless digital experiences continues to grow, financial institutions must prioritize mobile-first strategies and innovative KYC approaches. By embracing these trends, they can stay ahead of the competition and ensure compliance with evolving regulations.

“The Future of Digital Onboarding in Banking”
“Biometric Authentication: The Key to Secure Digital Onboarding”
“KYC Compliance: A Competitive Advantage for Financial Institutions”

Sources

FATF recommendations (as amended February 2023)
The Anti-Money Laundering Act of 2020 (FinCEN June 2021)
Sanctions and Anti-Money Laundering Act 2018 (UK)
RBI Allows Video- based KYC (Money Life India January 2021)