How automated identity verification can streamline the banking experience
In recent years, the number of global users favoring internet banking over in-person services has grown rapidly. Indeed, one study conducted by Juniper Research found that some 2.4 billion people used digital banking in 2020 – almost a third of the world population – and that the figure is expected to increase to more than 3.6 billion by 2024.
That will, of course, create significant logistical issues for banking institutions, which will be forced to deal with an influx of applications, transaction requests and questions without sacrificing on user experience (UX). Fortunately, technology is at hand to help make the onboarding process go as smoothly as possible, thanks to identify proofing powered by AI, which can deliver the following benefits:
Convenience
Traditionally, prospective customers would either have to visit a brick-and-mortar branch to present their ID, or alternatively upload their documentation and send it via email. While the latter method is certainly less disruptive than the former, it still creates unnecessary friction in the process and leads to a significant number of users abandoning the process before it has been completed. By automating ID verification, the whole rigamarole is made that much easier, encouraging more people to follow through on their initial application.
Speed
Following on from the point above, the back-and-forth which is a core feature of traditional onboarding (as outlined above) necessarily entails much delay in the approval of an application. Automated ID is far more effective at quickly and efficiently analysing a person’s credentials across a broad spectrum of metrics, which allows the bank or other financial institution to more confidently and more rapidly approve their application. Again, this is crucial in avoiding abandonment of the onboarding process and optimising conversion rates.
Accuracy
The fact that AI is able to leverage a multiplying number of data points and cut through the noise to achieve tangible insights on an individual’s identity, credit history and previous transactions is a powerful tool in reducing false positives and achieving certainty in ID verification. Thanks to the virtually limitless possibilities of Big Data, AI is capable of automating the entire process without impacting on its accuracy, resulting in a supremely satisfying banking tool for both institutions and customers alike.
Manpower
With AI tackling the lion’s share of the legwork in verifying an applicant’s identity, the bank’s human workforce can enjoy greater productivity as a result of being freed up to tackle more important tasks. This could be anything from handling in-person transactions to solving tricky troubleshooting queries to bolstering their product range with new and improved offers – all three of which are good news for the consumer, since they’ll invariably benefit from a better service. As such, automating the ID verification process isn’t just advantageous for this aspect of banking, but countless others, too.
Automation is optimising our use of resources and enriching our quality of life in any number of different areas. The banking sector is one that is particularly well-positioned in terms of AI-driven onboarding and identity verification, for all the reasons outlined above and more.
