Digital onboarding has created a new connotation with regard to employee induction. A totally seamless and efficient method is now available for integrating the new employee into the company itself. Further studies from the research show that having great onboarding programs increases employee retention by 82% for companies. Regardless of whether such a person is an experienced HR professional or a new manager, this article answers all pivotal questions regarding digital onboarding.
What is Digital Onboarding KYC?
In the broadest sense, digital onboarding KYC is nothing more than a manual hiring process, which typically involves the verification of a user identity for a new account set-up with a service, but rather than visiting a physical space, it’s done online.
Most financial sectors or businesses have to undergo customer onboarding as per the Know Your Customer (KYC) compliance requirements. The requirements differ from one organization to another, but most of the steps generally entail entering personal details, capturing a biometric sample, and undergoing a background check. The introduction of digital onboarding simplifies the process for the company as well as its customers.
What is Online ID Authentication?
Electronic identity verification (e-IDV) is an online process for establishing and verifying the ID of individuals or entities in electronic transactions. It includes an electronic method of validation of personal information, documentation, or biometric data in order to ensure the client’s legitimacy.
e-IDV is important in sectors like finance, e-commerce, and government services for preventing fraud, complying with KYC and AML regulatory requirements, and improving general security. It usually involves checking documents and identifying users through biometric means, which authenticate the true identity of the user or entity participating in the online transaction. The balance of security with user privacy and data protection is an important consideration in e-IDV implementation.
Many companies provide Electronic Identity Verification (e-IDV) services, such as Investopedia, SmartSearch, and Lightico, but found Shufti Pro best among all of them. Innovative e-IDV solutions help you verify the users faster and more accurately.
What are the Steps Involved in the Client Digital Onboarding Process?
While you may now know what digital onboarding really means, let’s move into the pragmatic details regarding how it works.
- Sign Up
User enrollment and registration are vital aspects of the whole digital onboarding procedure- almost like knocking on an individual’s door and introducing themselves before coming into the new home. The consumer submits some of the basic information such as name, e-mail ID, phone number, and address. It might take a day anywhere from just a few minutes to 60 minutes at a traditional bank. The information collected marks the commencement of the Know Your Customer process as organizations collect customers’ data for final verification.
- Document Verification
Just as in the digital age, the user probably has to append some identity document received electronically, such as a government-issued ID card or proof of payment as part of KYC.
Think of this as similar to the issuing of credentials by a company reception or hotel check-in. These documents are made sure to be genuine through unique technologies such as optical character recognition or OCR to artificial intelligence. Document verification is required under the KYC rule to verify the user’s identity and discourage identity theft.
- Identity Verification
A seamless digital onboarding experience demands identity verification along with a robust KYC process. It is the last stage of verification. Organizations have verified the user’s ID through different identity verification tools as provided by KYC law, such as biometric verification, matching selfies to ID pictures, or asking their security questions.
Even more stringent checks can be imposed on some types of services by additional AML watchlist checks. For instance, banks have frontline access to government-backed databases and possess a designated department checking user profiles. When things are okay, account creation opens for such a person.
Why are Digital Onboarding Solutions Necessary?
A completely hassle-free and smooth onboarding experience enhances customer experience. With the help of digital onboarding, all customers can now perform their onboarding activities at their convenient speed and from any location without any hassle of paperwork. These better experiences could ultimately result in the retention of a larger customer base.
What is the Definition of Digital Onboarding in the Banking Sector?
The digital onboarding of the banking sector makes a huge impact. In fact, this digital onboarding is touted to take the place of traditional ways of opening bank accounts and availing financial services in the banking sector. The benefits include:
- Convenience
This convenience is especially relevant to customers living in remote areas or having a very busy life.
- Risk Mitigation
Digital onboarding in a bank eliminates fraud by employing more sophisticated methods of identity verification, such as biometric authentication and facial recognition. It can be supplemented with other digital verification steps that can admit only eligible customers into the banking sector.
- Fast Processing
By applying digital onboarding for banks, it addresses faster processing of applications and transactions. Automated systems can validate information quickly and complete necessary checks that significantly decrease the waiting periods of customers before accessing services.
Key Takeaways
In this online space, digital onboarding is an evolution, not merely a trend. A seamless, efficient, and secure experience makes it an indispensable element of modern business operations, whether in banking, financial services, or corporate environments. It is paving the way for better adoption of more efficient processes while integrating new users and businesses.