Financial institutions have migrated rapidly to the digital space to keep operations going amid the COVID-19 pandemic. With physical distancing protocols in effect, remote services have provided a safer and more convenient means of completing banking transactions.
While many enterprises are already providing digital services, others are unprepared for this abrupt transition. Some banks still use legacy identity verification systems that are slow and provide inadequate security. Subsequently, sticking with these inconvenient processes comes at a high price. According to the American Bankers Association, more than 30% of customers are likely to abandon their current banks for one with better remote capabilities.
Apart from customer distrust, banking firms might also face penalties from regulatory agencies if they fail to comply with updated Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) guidelines.
Businesses should prioritize superb customer service as it improves customer retention and enables the acquisition of more clientele. Since banks interact with numerous people daily, they must also ensure that only legitimate persons can utilize their services.
The influx of digital banking users during the pandemic has attracted criminals to take advantage of weak security measures. Therefore, financial institutions must replace conventional identity verification methods with modern solutions.
Many vendors offer mobile facial biometric identity proofing technology with identity document authentication that is efficient in filtering fraudulent individuals from genuine customers. These advanced identity verification solutions harness active-liveness detection to confirm a person’s real-time presence during onboarding. Moreover, an automated identity authentication will verify their provided government-issued credential’s genuineness by comparing it to known templates in trusted digital databases.
Mobile identity proofing technologies reduce friction during enrollment, making the procedure as seamless as possible. Additionally, banks can extend the value of a proofed identity by enabling passwordless login on their digital platforms.
Implementing multi-factor authentication (MFA) compliant with FIDO2 authentication standards ensures that only the actual owner can access the existing account. It reduces account takeover fraud and protects the system from criminal infiltration.
As customer experience becomes the most crucial factor when choosing a digital bank, clients expect financial institutions to improve their remote services to satisfy their changing demand.
Modern identity proofing solution providers like authID understand the relevance of prioritizing customers’ needs while complying with data privacy and anti-fraud regulations. authID further expounds on the role of robust digital identity verification checks during onboarding to provide both security and seamless user experience to clients in the infographic below.