In today’s modern era of hybrid digital and physical banking experiences, financial institutions are seeking new ways to improve their new customer acquisition strategies while ensuring they are compliant with relevant regulations. Following a dramatic increase in the use of remote onboarding and expansion of digital banking in recent years, the sector is only set to develop further – the market size is projected to grow from USD $8.4 billion in 2021 to USD $19.2 billion by 2028, forecasting a healthy compound annual growth rate of 14.80%.
Therefore, it’s become increasingly important for banks and credit unions to ensure their customers’ identities are genuine, and that they can lawfully use the services offered by the financial institution. The use of biometric identity verification and eKYC (electronic Know Your Customer) checks have become essential, as they enhance security while simplifying the end-user’s journey.
To meet this growing need, Entrust and iProov – two industry leaders in digital identity verification and authentication – have partnered to deliver biometric identity verification and eKYC checks in one powerful, end-to-end solution. This solution revolutionizes how banks and credit unions onboard new users, ensuring a fast, secure, and user-friendly experience for customers and financial organizations alike.
What are eKYC Checks and How Do They Work?
eKYC checks are a digital alternative to the traditional KYC process, which is required by regulatory bodies to prevent money laundering, terrorist financing, and other illegal activities. eKYC allows customers to open accounts remotely without the need for physical paperwork or in-person interactions. It’s the most effective way to speed up the onboarding process and improve customer and member satisfaction right out of the gate.
Entrust’s identity solutions portfolio combined with iProov offers identity verification and eKYC services to financial institutions for account opening. It integrates iProov’s biometric solutions suite to provide a seamless and secure onboarding experience. Customers can use their smartphones to capture their biometric data, take a selfie, scan a government-issued ID, and submit the information for verification. The technology can process thousands of identity verifications in minutes, reducing the time and costs associated with manual identity checks.
What Are the Benefits of Combining Biometric Identity Verification With eKYC?
By incorporating biometric verification into eKYC processes, banks and credit unions can reduce the risk of onboarding illegitimate users with stolen or synthetic identities. Additionally, eKYC checks enhanced with biometric technology have proven to be more efficient – McKinsey says that the potential cost reduction in onboarding costs by using digitally-enabled processes is 90%. Also, if a digital onboarding process takes longer than 20 minutes, 70% of customers completely abandon their attempt to open an account.
Ultimately the benefits of using biometric identity verification and eKYC checks include, but are not limited to:
- Faster, more convenient, and more secure onboarding experience for customers and members
- Support for compliance and regulatory requirements
- Reduced risk of both synthetic and stolen identity fraud, as well as data breaches, which can be costly for financial institutions and damaging to their reputation
The Next Step in Customer Experience: Digital Payment Card Issuance
A critical objective of this joint solution is creating an effortless experience for users, from beginning to end.
Following on from this, it’s important to prioritize delivering value to customers and members as soon as their account is created. One of the most meaningful milestones is debit card issuance, which provides customers with purchasing power and access to their newly deposited funds. Streamlining the issuance of digital payment cards as a part of the account opening process creates a seamless and valuable experience. By linking the onboarding process with the instant issuance of digital payment cards, banks and credit unions can provide a seamless and convenient experience for their customers and members.
This innovation in digital payment card issuance is part of the joint solution and is particularly valuable because it eliminates the urgency for physical card issuance. Customers can begin using their new accounts immediately, contributing to a more satisfying onboarding experience and increased time-to-value for the financial institution.
The partnership between Entrust and iProov is a game changer for the banking industry. It offers a cutting-edge solution that combines biometric identity verification and eKYC checks to provide a secure and user-friendly onboarding experience for both customers and financial institutions. As digital banking continues to grow, this technology will become increasingly important for financial institutions to stay ahead of the curve and provide their end-users with the best possible service.