US firm Preventor analyzes that process and automation is increasingly gaining ground in both strategy and priorities for organizations in 2022, which are looking to leverage technologies such as identity verification.
In fact, global spending in the identity verification market is estimated to grow to US$18 billion by 2027, and not surprisingly, as it has become a non-negotiable area for onboarding new customers.
Other trends point to the "flexibility to incorporate dynamic flows according to each company in order to include other digital services, so that automation is total and not partial," says Preventor.
The company believes that "it is vital that the authenticity of a customer's identity is established from the outset and fraudsters are prevented from entering the system", so its portfolio includes solutions ranging from biometric to document verification tools to prevent fraud.
With a rising tide of digital services expanding today, new customer onboarding is shifting to a scenario where paperwork takes a back seat to faster, more flexible platforms.
And now, the pandemic has "accelerated the need for businesses and governments around the world to rethink their approach in order to enable remote identity verification through digital channels and facilitate everyday interactions," according to consulting firm Accenture.
Preventor has developed technologies that allow companies to accelerate the sales and customer enrollment process through mobile and remote digital channels. This is done through a platform that ensures the customer in question is who they say they are and prevents unwanted access to accounts.
To keep up with market needs, Preventor indicates that in 2022 it has implemented alternative solutions that are strategic, among these, proof of address verification, incorporation of digital signatures and document scanning and continuous identity monitoring.
An effective process of incorporating new clients requires the integration of different technological tools to track possible fraud and avoid possible money laundering. Preventor, for example, does it with artificial intelligence that shows through graphs the flow of money, allowing to identify possible patterns of money laundering and at the same time find hidden relationships that may exist.
Besides strategies in the field of technology, specialist firms consider it key that in addition to making the process as simple as possible, interruptions in the process should be avoided, which means that customers should not be redirected back to the physical offices of the institutions in order to complete identity verification registrations with physical documents.
It is also important to differentiate the needs of each industry in the process of incorporating new customers, bearing in mind that regulations vary between financial institutions, which must comply with all KYC regulations, and telecommunications firms, which have their own schemes.
In the midst of the global debate on the appropriate use of data, experts advocate that only the required data should be collected in the onboarding process, since too much information can overwhelm customers, making them distrustful and eventually give up.
In addition to the above, a culture of transparency is encouraged within the organizations regarding the use of personal data in the incorporation process, which gives customers more security in the process, while generating greater knowledge about KYC and anti-money laundering regulations that require firms to take these measures.
Onboarding is the financial institutions' letter of introduction to their new customers and is therefore considered a key process on the road to loyalty, which is becoming increasingly competitive in the face of the growing offer of digital services.
The digital solutions based on biometrics are becoming increasingly important in this scenario of disruption produced by fintechs, in which the immediacy of the incorporation of new clients requires agile but also very secure processes, as analysed by Preventor, a firm specialising in this market.
Given the boom of these solutions in the financial industry, it is also expected that the global market for biometric developments will maintain its current momentum and its valuation could reach US$84.27 billion by 2026, according to the report Global Biometrics Market, Competition, Forecast & Opportunities.
The fact is that the time it takes to onboard new customers in the era of digitization can define the success of a financial institution.
It is estimated that after 15 minutes, 55% of customers completely abandon the attempt to join a service, and after 20 minutes, 70% of them will give up, according to research by the specialized firm Signicat.
In this regard, it recommends that new customer on-boarding should be done in a 'short and sweet' process, which implies that it should be digitalised since 'more than half of consumers would be more likely to order a product if the process were 100 % online'.
Contact our specialists to learn how Preventor can help your business grow.
