Over the course of human history, few things have had a more significant effect on business than digital technology. In a very short time, digital technology completely changed how we connect and interact with each other, as well as how businesses operate.
Digital Onboarding is one of the latest areas to be disrupted by digital transformation. In the past, onboarding was a paper-based process that was often slow, manual, and error-prone. But with the advent of digital onboarding solutions, businesses can now quickly and easily verify identities online.
In this post, we’ll look at what digital onboarding is, how it works, and some of the benefits a digital onboarding system can offer businesses.
What Is Digital Onboarding?
Digital onboarding is the process of verifying someone’s identity online. This could be a customer, employee, or vendor. The verification process usually involves collecting identity documents, such as a passport or driver’s license, and matching them against other data sources.
With digital onboarding, businesses can verify someone’s identity in minutes rather than days or weeks. This is because all the verification steps are done electronically. There’s no need to send paper documents back and forth or wait for someone to physically sign something.
How Does Digital Onboarding Work?
Digital onboarding solutions use identity verification technology to verify someone’s identity online. This technology can match identity documents against other data sources. It can also verify biometric data, like a fingerprint, face scan or iris scan.
Identity verification technology is based on four main pillars:
- 1. Identity Verification
Here, digital identity verification technology checks that the identity document is genuine and has not been tampered with. For example, it will check for watermarks, holograms, and other security features.
- 2. Data Matching
Next, identity verification technology will match the identity document against other data sources. This helps to confirm that the person presenting the identity document is who they say they are.
- 3. Biometric Verification
In some cases, identity verification technology can also verify biometric data. This could be a fingerprint scan, an iris scan, or facial recognition. Biometric verification adds an extra layer of security to the identity verification process.
- 4. Fraud Detection
Finally, identity verification technology can also help to detect fraud. It does this by checking for red flags, like identity documents that have been forged.
Digital onboarding solutions bring together all these identity verification technologies into one easy-to-use platform. This makes it quick and easy for businesses to verify someone’s identity online.
What is Digital Onboarding in Banking?
Digital onboarding in Banking and the financial sector is the process by which a new customer (or current customer who has been signed up for online services) is brought into the digital world. Digital onboarding encompasses the onboarding experience of signing up, downloading the app, verifying their identity, and the first few steps in using it.
It’s critical that customer-facing teams are involved in this process to ensure a smooth transition from offline to online banking. The goal is to reduce friction and anxiety while helping new customers get oriented quickly in their new digital environment.
There are multiple benefits to digital onboarding in Banking. First, it can help new customers feel more comfortable with their banks. It also helps them get used to interacting with technology and building trust with the bank. And finally, it can help banks get a sense of how much usage their customers are actually having on their accounts, which can help inform future product development and service improvements.
Why is digital onboarding important?
As organisations continue to grapple with the realities of digital transformation, they are faced with a new challenge: how to integrate those newly digitised processes and offerings into the existing customer experience.
The Digital Onboarding process in an important part of the customer experience when doing digital customer onboarding. Most brands are investing in their digital onboarding. For many teams their onboarding strategy is built around the creation of a multi-channel experience.
While this has proven to be successful, it may not be the only approach to digital onboarding. In fact, a recent study by the CMO Council concluded that the most effective onboarding strategies focus on mobile and social.
Some of the many reasons why digital onboarding is important are:
Increases retention: As user experience improves, higher retention rates increase the likelihood that users will continue using an app after they’ve downloaded it. In addition, increased retention rates lead to higher average session lengths and greater engagement levels.
Improves engagement: Digital onboarding gives users a chance to become comfortable with their surroundings and the app itself before they begin using it in earnest, especially for online businesses. This gives them a better sense of control over their experience and reduces their anxiety levels, which boosts their overall engagement and satisfaction.
Reduces abandonment: Digital onboarding allows users to ease into a new app without feeling entirely overwhelmed by the unfamiliar technology. This not only helps keep people engaged but also reduces their risk of leaving the app altogether.
Digital onboarding and identification
It’s easy to lose track of users. And as they use the product which they are onboarded for, they may become more engaged, but still not be properly identified. With onboarding and identification, you can ensure that all users have their correct ID and are properly signed up for your services.
With onboarding, you can guide users through the steps of setting up their account with your app. If you have an integrated sign-in feature, you can seamlessly have them sign in with their existing account. You can also offer tutorials to introduce new people to your product and help them get comfortable with it.
With identification, you can tie a user’s actions within your app to their real-world identity. You could use a combination of different methods, such as linking their email address or phone number to their account.
Effective digital onboarding and identification helps you to build a strong customer relationship. Here are the top four elements of a fully personalised digital onboarding process that can help you to build a strong customer relationship while staying away from fraud:
· Seamless identity verification in real-time
· Liveness detection to prevent spoofing and identity fraud
· Fast passwordless authentication in real-time
· Secure Biometric Verification and Authentication
Types of Digital Onboarding
Onboarding comes in many different shapes and sizes. The type of onboarding you need will depend on your business, your customers, and your industry.
Here are some of the most common types of digital onboarding:
Employee Onboarding
One of the most common uses for digital onboarding is employee onboarding. This is the process of verifying the identity of a new employee, and onboard new employees. The process is meant to confirm that the employee is who they say they are and that they’re eligible to work in the country. It could also involve verifying their qualifications and references and improve the employee experience.
Customer Onboarding
Another common use for digital onboarding is customer onboarding. This is the process of verifying the identity of a new customer. The process helps verify whether the information the customer has provided is accurate and that they’re eligible to open an account with the company and users its products and services.
Consumer onboarding could also involve verifying their address, phone number, and email address. This is an essential part of the KYC process.
Other Types of Onboarding
In addition to employee and customer onboarding, there are other types of onboarding that can be done digitally. For example, businesses can use digital onboarding to verify the identity of vendors and partners. This helps to ensure that only authorised individuals have access to sensitive information.
In which business types can digital onboarding be used?
The ability to effectively detect spoofed identity documents is critical for any business that needs to verify the identity of its customers. This includes businesses in a wide range of industries, such as:
Banking
In recent years, identity theft and account fraud have become a big problem for banks. This is because criminals are using sophisticated methods to steal people’s identity documents and then use them to open fake accounts.
Digital onboarding can help banks to prevent identity theft and account fraud. This is because identity verification technology can check identity documents against other data sources, like a credit bureau or government ID database. This makes it much harder for someone to use a fake identity to open an account.
Digital onboarding in banking also helps to comply with anti-money laundering (AML) regulations. This is because identity verification technology can check identity documents against AML watchlists. This helps to prevent criminals from using your bank to launder money.
Crypto
Cryptocurrencies are digital assets that use cryptography to secure their transactions. Cryptocurrencies can be traded on decentralised exchanges, or on centralised exchanges. Digital onboarding can help businesses to verify the identity of their customers when they trade cryptocurrencies.
This helps to prevent crypto fraud. And with scammers stealing $14 billion in cryptocurrency in 2021 alone, identity verification is more important than ever.
Gaming
The gaming industry is huge. And it’s only getting bigger. The industry is expected to reach $321 billion by 2026. With so much money at stake, it’s no surprise that fraud is a big problem for the gaming industry.
Digital onboarding can help businesses in the gaming industry verify the identity of their customers when they make a transaction. This helps to prevent fraud and ensures that only legitimate gamers can play your game.
Insurance
The insurance industry is another industry that’s been hit hard by fraud. Currently, the cost of insurance fraud globally is $80 billion. And it’s only getting worse.
Digital onboarding can help businesses in the insurance industry verify the identity of their customers when they apply for a policy. This helps to prevent fraud and ensures that only legitimate customers can get insurance.
Healthcare
Hospitals and other healthcare providers can use digital onboarding to verify the identity of their patients. This helps to prevent identity theft and other types of fraud. Digital onboarding can also help businesses to comply with patient privacy regulations. This way, businesses can ensure that only authorised personnel have access to patient information.
E-commerce
The e-commerce industry is another industry that’s been hit hard by fraud. In 2019, payment fraud in the sector rose by 73%.
Digital onboarding can help businesses in the e-commerce industry verify the identity of their customers when they make a purchase. This helps to prevent fraud and ensures that only legitimate customers can make a purchase.
Importance of fast verification in financial fraud with digital onboarding
The financial services industry is one of the most highly regulated and scrutinised industries in the world, for good reason. With millions of dollars changing hands every day, it’s imperative that consumers know that they can trust their banks with their money. Because of the high stakes, banks and other financial institutions must be hyper-vigilant about managing fraud and risk, and that means making sure that new customers really are who they say they are with fast verification and authentication.
In the financial services industry, the application process is a key touch point for customer acquisition. The customer onboarding process has evolved over the years as new technologies have been implemented to streamline this process. Fraud detection is a critical element of this onboarding process.
Digital onboarding is a process of onboarding clients to financial services by leveraging digital channels such as website and mobile applications. Digital onboarding aims to enhance the traditional process of banking such as visiting the bank branch to apply for an account. It plays a huge role in reducing banking time and providing better services to consumers at their convenience.
Financial institutions are under increasing pressure to not only serve existing customers quickly but also onboard new customers in a matter of days. The longer it takes to verify a customer’s identity, the higher the risk of fraud — and the longer the onboarding process takes, the higher the risk of losing the customer to a competitor.
Benefits of Digital Onboarding
There are many benefits of digital onboarding, both for businesses and for the people they’re verifying. Let’s look at some of the most important ones.
- Faster Onboarding
The biggest benefit of digital onboarding is that it’s much faster than traditional onboarding methods. With digital onboarding, businesses can verify someone’s identity in minutes rather than days or weeks. This is because all the verification steps are done electronically. There’s no need to send paper documents back and forth or wait for someone to physically sign something.
The faster onboarding process is especially useful for businesses that need to verify many people quickly, such as during a mass identity verification campaign. It’s also useful for businesses that need to verify people in real-time, such as when providing customer support.
- Improved Customer Experience
Digital onboarding also offers a better customer experience than traditional onboarding methods. This is because digital onboarding is much simpler and more convenient for customers. They can complete the entire process online without having to visit a physical location or wait for someone to verify their identity manually.
The improved customer experience can lead to higher customer satisfaction rates and increased conversions. It can also reduce customer churn and save businesses money in the long run.
- Reduced Fraud
Another big benefit of digital onboarding is that it can help to reduce fraud. This is because identity verification technology can check for red flags, like identity documents that have been forged. This helps to protect businesses from identity theft and other types of fraud.
Digital onboarding can also help to prevent people from creating fake accounts. This is because identity verification technology can match identity documents against other data sources. This makes it much harder for someone to use a fake identity to create an account.
- Compliance with Regulations
Another big benefit of digital onboarding is that it can help businesses to comply with regulations. For example, many regulatory bodies, such as the Financial Conduct Authority (FCA), require businesses to verify the identity of their customers. Digital onboarding solutions can help businesses to meet these requirements quickly and easily.
Digital onboarding can also help businesses to comply with anti-money laundering (AML) and Know Your Customer (KYC) regulations. This is because identity verification technology can verify the authenticity of identity documents. This helps to prevent criminals from using your business to launder money.
- Global Reach
Another benefit of digital onboarding is that it offers a global reach. This is because digital onboarding solutions can verify identity documents from all over the world. This is useful for businesses that need to verify people from different countries, such as online retailers or travel companies.
Digital client onboarding also offers a multilingual user interface. This means that businesses can use digital onboarding solutions to verify people in their native language. This is useful for businesses that need to verify people from different language backgrounds, such as universities or multinational corporations.
- Flexible Deployment
Another big benefit of digital onboarding is that it’s highly flexible. This means that businesses can use digital onboarding solutions in a variety of different ways. For example, businesses can use digital onboarding solutions on their website, through a mobile app, or via a customer support portal.
This flexibility makes digital onboarding solutions ideal for businesses of all sizes. They can be used by small businesses to verify a few customers per month or by large enterprises to verify millions of customers per year.
Our Digital Onboarding Solution – Udentify
Choosing the right digital onboarding solution is critical when it comes to identity verification. This is because identity verification technology is only as good as the digital onboarding software that you use. Opt for a leader in the identity verification space, like Udentify.
Udentify allows you to know the true identity of an employee, customer, business partner, gamer, or user in seconds. It’s the perfect software for age verification, passwordless authentication, and user onboarding. The digital onboarding platform ensures fool-proof protection by providing six layers of security, including ID document verification, man-in-the-middle attack prevention, AI voice verification, and more.
With Udentify, you can rest assured that you’re using the best identity verification technology on the market.
Get It Right with Digital Onboarding
Digital onboarding is a fast, efficient, and secure way to verify customer identities. It offers many benefits for businesses, including faster customer onboarding, reduced costs, increased customer satisfaction, and reduced fraud. If you’re looking for a way to streamline your customer onboarding process, digital onboarding is a great option to consider.
Ready for a new era of identity verification? Get in touch with fraud.com today. We’re happy to answer any of your questions and get you started on your digital onboarding journey.
