Online Customer Onboarding Reforming Financial Landscape

Online Customer Onboarding Reforming Financial Landscape
Online Document Verification System

Online Document Verification System: Today, traditional institutions such as financial sectors have recognized the need for remote online customer onboarding. The revolution of online banking through mobile phones is, on the one hand, mounting pressure on other organizations and on the other hand, it is giving rise to some security-related issues. 

Consumers feel more comfortable in making transactions through smartphones. These transactions are not only limited to banking transactions but also for online shopping, the credit cards are used. The banking industry seems so opt to provide these services as it would definitely contribute to the revenue generation of this industry.
online banking and security

Now, the landscape is leveraging itself with advanced capabilities to work according to the needs of consumers. With this, the need for strong security measures is also demanded. To act upon the seamless user experience mobile and desktop application while keeping into account the user privacy and security perspectives is a challenging task. There are many reasons for this, for instance, financial institutions are prone to cyberattacks and money laundering activities that need to cater beforehand. Otherwise, regulatory fines can ultimately result in monetary loss and affect the reputation of banks. To take further online banking and security, online banking norms should not disrupt the customer onboarding process that enforces them to abandon it immediately. One of the major challenges in online banking is identity verification. 

Challenge – Online Document Verification System

Traditional ways of conducting banking involve manual identity verification, either through document verification, identity verification or biometric verification. It is a challenging task to execute it online. Well, not anymore.

Online Document Verification System can be performed online in a seamless manner, a process that does not frustrate the user. For this, to prove the real identity to the banking system, customers can upload the official supported documents, that could include an identity card, identity forms, driving license or passport. Along with this, a user can be verified through biometric verification i.e. facial verification. 

Innovative Solutions For Bank

To conduct online verification, a user’s facial features are identified and are verified against the picture uploaded on the document. Here involve some tricks through which fraudsters fool the system with photoshopped images, printed images, face makeup, etc. 

To cater to these issues, liveness detection is performed that streamlines the face verification process. In liveness detection, a person on the other side of the computer system has to prove that he is physically present there. This can be done through eye blinking or movement that proves that identity is real. Similarly, employee identity verification can also be performed online for hiring purposes. The banking industry can revolutionize the idea of successful online verification with the introduction of online hiring processes.

Legislation Changing Banking Landscape

From the past couple of years, local regulatory authorities are active because of the increasing incidences of money laundering, terrorist financing, data breaches, identity theft, and several other cyberattacks. The banking industry is in the spotlight as it is an origin for major money laundering cases. For this, banks are enforced to comply with AML regimes according to which each onboarding entity should be properly screened against a number of sanction lists, politically exposed personalities’ records, and several criminal record databases. These records should be updated to eliminate the chances of neglecting a recently caught exposed entity.

The banks who are adopting innovative solutions to conduct online banking, need to strictly comply with the regulations to avoid any kind of regulatory fines and penalties. Ensuring controlled data access to combat the risks of data breaches is also important. Many international regulatory authorities are set up for the evaluation of the banking industry of countries to analyze the standards they are running into organizations to contribute to the elimination of cyberattacks and bad money flow from the world.