Study Reveals Post-Pandemic Shift Towards Mobile-First Onboarding Experiences
A recent study conducted by Visa and the Bank Administration Institute (BAI) has shown that the trend towards mobile-first onboarding experiences is likely to continue even after the pandemic. The survey revealed that increased mobile usage has led businesses to focus on developing fully mobile user-friendly onboarding experiences.
Key Shifts in Onboarding Experiences
- Video-Based KYC Checks: The use of video-based Know Your Customer (KYC) checks, which involve verifying a customer’s identity through digital means such as selfies and biometric data, is becoming increasingly popular. This approach not only enhances security but also provides a more seamless and convenient experience for customers.
- Biometrics and Online Channels: Financial institutions can leverage biometrics and online channels to adapt to customer preferences, leading to increased investment in digital onboarding processes.
EU’s Anti-Money Laundering Directive
The fourth Anti-Money Launderling Directive (AMLD4) came into force in June 2017, introducing new rules to protect against money laundering and terrorist financing. The enhanced fifth AML directive (AMLD5), effective from January 2020, has brought additional challenges for financial institutions, including improved customer due diligence and stricter customer identification.
KYC Process Flow
The KYC process involves verifying a customer’s identity through various means, including:
- Data collection
- Identification
- Verification
- Politically exposed person/sanctions lists checks
Financial institutions must maintain records on transactions and information obtained through Customer Due Diligence measures.
Innovative Approaches Welcome
The European Supervisory Authorities have promoted new solutions to address specific compliance challenges, encouraging the use of:
- Artificial intelligence
- Digital identity technologies
The authorities suggest retaining a common approach for consistent standards across the EU.
Gemalto’s ID Verification Solution
Gemalto offers an advanced ID verification solution that helps financial institutions comply with KYC regulations and minimize fraud risk. The system provides:
- Automatic capture of customer information
- Multichannel identity document verification
- Biometric authentication options
Study Findings and Recommendations
The study’s findings underscore the importance of adapting to changing customer preferences and leveraging innovative technologies to enhance security and convenience in onboarding processes. As the trend towards mobile-first onboarding continues to evolve, financial institutions must prioritize digital transformation to stay ahead of the curve.
By embracing these changes, financial institutions can provide a seamless and secure experience for their customers while complying with regulatory requirements.