Customer onboarding is one of the most commonly abandoned processes in banking. It’s directly responsible for the high customer acquisition costs that financial organizations face nowadays. However, there is a way to mitigate this problem: the implementation eKYC in digital banking. In this article, we look into the benefits of such a solution. We invite you to read on.
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Benefits of eKYC in Banking
Why should you introduce eKYC measures in your bank and embrace digital customer onboarding? There are quite many reasons for that. Let’s look at all the benefits of eKYC to outline why it’s a must in a bank of the 21st century.
Improving the Satisfaction of Mobile-Only Customers
The digital-only segment and its subsegment of mobile-only customers in banking are constantly growing. This is why financial organizations need to adapt their services for such clients, and implementing eKYC is one of the ways to do so.
With the implementation of eKYC procedures, minimizing the amount of time spent in physical branches becomes possible. Most interactions take place in a virtual branch in the digital realm, using biometric technology for authentication and video calls instead of traditional meetings. This way, you can embrace the optichannel approach, letting your customers onboard through the most convenient channel and building higher satisfaction (while reducing the number of abandoned onboardings).
The Importance of eKYC in Automating Customer Onboarding
When it comes to the benefits of eKYC in banking, we must mention automation. When customer verification and authentication are carried out online, it becomes significantly easier to introduce AI or other automation-related technologies to speed the process up and increase the productivity of your employees.
What is more, many solutions (like our LiveBank platform) enable you to decide on the level of automation you introduce. Thanks to this, you can balance human touch and overview with new tech and find the golden means to stay compliant, build a positive customer experience, and improve your bank’s efficiency.
Do you want to streamline your digital onboarding?
Contact us!Instant Verification and Robust Fraud Protection
Implementing eKYC in your bank will improve your anti-fraud protection. This is because all the data is available in one place almost instantly.
You can use historical data to teach your ML models and then use them to verify all the new clients quickly. This way, if a concern about potential fraud arises, you will be notified instantly. This will let your team investigate the case much more rapidly and help you spot fraud attempts that would go undetected otherwise.
Improving Sustainability with eKYC Implementation
Sustainability becomes a must in an era when global warming and climate change are among the most important public discussion topics. Not only do the clients expect it, but governments also keep imposing new eco-friendliness regulations. How does eKYC fit into this?
Well, one of the benefits of eKYC implementation is that you move towards a paperless system. Small as it may seem, it’s both eco-friendly and efficient, so you should take this advantage into account.
Easier Compliance
Moving your KYC procedures into the digital environment also enables you to implement scripts or AI in banking to verify whether all steps and documents are compliant. It’s not a foolproof system, and you will still need to check all the alerts manually, but this can help you spot errors and potential issues that could cause you major fines.
eKYC in Banking Allows Wider Reach and Accessibility
Traditional onboarding requires your customer to be present in your branches, which in turn…discourages those people who live and work away from your bank. This is where you can see the importance of eKYC in banking: with eKYC, this is no longer a problem—they can go through the next steps of the process wherever they are. As a result, you can reach out to more potential customers without covering the cost of establishing a physical presence near them.
Harvest the Benefits of eKYC in Banking with LiveBank Platform
Our LiveBank platform has a dedicated eKYC module to streamline digital customer onboarding. It’s equipped with technologies such as AI, Biometrics, and OCR that enable you to authenticate your customer and automate the process to the fullest. Reap the benefits of eKYC for digital banking with our platform!
The Importance of eKYC Implementation in Banking – The Takeaway
The implementation of eKYC in digital banks has a plethora of benefits, ones that your organization mustn’t miss out on. Thus, if you still haven’t done it, don’t wait—contact us at LiveBank and let us explain how we can enhance your operations through digital onboarding!
You may also read: Managing Customer Expectations in the Era of Digital Banking
