# Fraud Protection: Why Customer Onboarding Requires Digital Identity Processing Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-06-15 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: Enhancing Customer Experience with Digital Identity Processing Meta Description: Discover how digital identity processing and intelligent automation can streamline customer onboarding, prevent fraud, and create an enhanced customer URL: https://financedigest.com/fraud-protection-why-customer-onboarding-requires-digital-identity-processinghtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/digital-identity-processing-1736838282622-compressed.jpg) _By **Omid Aslani,** Director of Commercial Product Management at_ [_Kofax_](http://www.kofax.com) In the financial services market, great customer experiences are central to competitive advantage.  It drives higher retention and the willingness to pay a more premium price on upsell opportunities. The first interaction customers have once they purchase a product or service is the onboarding process. Have you thought about what your organisation’s onboarding process looks like? If it’s slow, manual and clunky, you’re turning off customers before you’ve had the [chance to nurture a sense](https://www.financedigest.com/with-queen-elizabeths-death-republicans-sense-their-chance.html "With Queen Elizabeth’s death, republicans sense their chance") of brand loyalty. On the other hand, if the process is smooth, fast and streamlined, it’s likely to create a favourable impression, and potentially even winning over customers and retaining them for the foreseeable future. However, onboarding is susceptible to fraud, an area that companies can ill afford to ignore. The pandemic may have abetted the situation. LexisNexis Risk Solutions’ Federal Government Solutions team reported that fraudulent transaction volumes increased by 35 percent. Similarly, bot attacks in e-commerce and [financial services](https://www.financedigest.com/matching-digital-adoption-with-cybersecurity-in-the-financial-services-industry.html "Matching digital adoption with cybersecurity in the financial services industry") rose from 32 percent and 38 percent, respectively. Risk management, data security, [digital transformation](https://www.financedigest.com/redefining-the-human-touch-with-data-driven-digital-transformation.html "Redefining the human touch with data-driven digital transformation"), compliance, and marketing leaders, all have a stake in optimising the way their institutions capture, validate and continuously monitor customer identities, starting from Day One. [Leaders must implement best practices in streamlined digital](https://www.financedigest.com/young-leaders-forum-debating-what-successful-leadership-looks-like-in-the-digital-age.html "Young Leaders Forum, debating what successful leadership looks like in the digital age") onboarding of new customers while preventing fraudulent account openings – without increasing customer friction. Automating this business-critical workflow is essential to effective customer onboarding. Financial services companies serious about customer experience and [fraud protection must look at digital](https://www.financedigest.com/fraud-in-a-mobile-digital-world.html "FRAUD IN A MOBILE DIGITAL WORLD") identity processing best practices.  There are three ways digital identity processing can [prevent fraud:](https://www.financedigest.com/payroll-fraud-and-how-to-prevent-it.html "Payroll fraud and how to prevent it") - **Verification of mobile ID –** When mobile ID verification is provided to customers, they can [snap a photo](https://www.financedigest.com/snap-happy-79-of-brits-ditch-digital-cameras-in-favour-of-phone-photos.html "Snap Happy: 79% of Brits ditch digital cameras in favour of phone photos") of their driver’s license, passport or national identity card with their smartphone and upload it to the onboarding system. The technology can then optimise, image enhance, extract and validate the [digital content using advanced](https://www.financedigest.com/miq-partners-with-seenthis-to-advance-sustainability-in-digital-advertising.html "MiQ Partners with SeenThis to Advance Sustainability in Digital Advertising"), automated neural networks and multilayered image filters to confirm the document’s authenticity. Adopting ID verification can go a long way in [fraud prevention](https://www.financedigest.com/fintechs-how-to-increase-loyalty-through-user-experience-and-fraud-prevention.html "FinTechs: How to increase loyalty through user experience and fraud prevention"), without taking away mobile upload from customers. - **Mobile ID framework** [– Know Your Customer](https://www.financedigest.com/customer-engagement-whos-leading-the-way.html "Customer engagement – who’s leading the way?") (KYC), and Anti-Money Laundering (AML) regulations are constantly evolving. So, adopting intelligent [automation can ease the compliance](https://www.financedigest.com/red-box-recorders-launches-worlds-first-automated-audio-recording-compliance-verification-tool.html "RED BOX RECORDERS LAUNCHES WORLD’S FIRST  AUTOMATED AUDIO-RECORDING COMPLIANCE VERIFICATION TOOL") process for financial institutions. The process orchestration component within it extracts information and submits it to other enterprise applications for further processing. - **Facial recognition technology _–_** Ensuring an applicant hasn’t stolen someone else’s identification is essential. Utilising facial recognition technology makes sense – it combines military-grade liveness detection with auto-capture to confirm applicants are indeed, taking live pictures of themselves. In combination, the intelligent automation [technology adopted can make a side-by-side comparison of the applicant’s video](https://www.financedigest.com/how-video-technology-continues-to-boom-in-the-education-sector.html "How video technology continues to boom in the education sector") and selfie image to the picture on their ID. The applicant will only be validated if a match is confirmed. **An** [enhanced customer experience](https://www.financedigest.com/enhancing-the-guest-experience-in-hospitality.html "Enhancing the guest experience in hospitality") ![Omid Aslani](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/omid-aslanidir-commerical-product-managementkofax-200x200-1-450x450-1736838282602-compressed.jpg) Omid Aslani Digital identity processing, in combination with intelligent automation, can not only create an effective onboarding process but it can also provide a blueprint for delivering an enhanced [customer experience](https://www.financedigest.com/curating-a-fully-contactless-customer-experience-for-payments.html "Curating A Fully Contactless Customer Experience for Payments "). Here are some ideas: - **Eliminate compliance-related frustrations –** It’s imperative [compliance remain front-of-mind throughout the entire onboarding process](https://www.financedigest.com/solvency-ii-pushing-existing-systems-and-processes-harder-is-not-enough-for-compliance.html "Solvency II: pushing existing systems and processes harder is not enough for compliance"). There are KYC and AML regulations, of course, but organisations also have to abide by other regulations such as GDPR and Terror Funding legislation. Often, compliance-led delays frustrate customers, but software robots can automate customer due diligence, such as KYC checks. [Financial institutions can verify data against internal](https://www.financedigest.com/the-hidden-financial-woes-of-international-students-heading-for-the-uk.html "The Hidden Financial Woes of International Students Heading for the UK") and external databases and reduce errors in the compliance process too. - **Ensure an intuitive user experience –** Don’t expect customers, current and new, to spend time trying to figure out how to use the organisation’s [digital platform](https://www.financedigest.com/seenthis-launches-creative-platform-to-boost-performance-and-reduce-co2-emissions-in-digital-advertising.html "SeenThis launches Creative Platform to boost performance and reduce CO2 emissions in digital advertising"). When it comes to a [banking or retail](https://www.financedigest.com/rethinking-retail-banking-embracing-a-customer-centricvalue-proposition.html "Rethinking retail banking: Embracing a customer-centricvalue proposition") mobile onboarding programme, ease-of-use is a top requirement for customer retention. Offer an intuitive and user-friendly solution, further [supported by a step-by-step guide](https://www.financedigest.com/a-sensitive-guide-to-supporting-your-female-colleagues-in-the-workplace.html "A sensitive guide to supporting your female colleagues in the workplace") to take customers right through the process with little-to-no sticking points. - **Streamline the process for speed –** A slow onboarding process can lose [financial institution customers](https://www.financedigest.com/id-fraud-is-on-the-rise-can-financial-services-do-more-to-protect-their-customers.html "ID fraud is on the rise: can financial services do more to protect their customers?"). Equip the intelligent automation platform with capabilities to streamline the onboarding [process for efficiency](https://www.financedigest.com/1-easy-tip-to-make-a-key-e-commerce-process-more-efficient.html "1 easy tip to make a key e-commerce process more efficient"). For instance, robotic process automation (RPA) can automate time-consuming tasks. AI technology such as natural language processing (NLP) can streamline document processing. Low-code and no-code development capabilities can empower [business users and citizen developers to build-and-run digital](https://www.financedigest.com/fintechs-support-of-ukraines-digital-businesses-can-be-used-as-blueprint-across-the-world.html "Fintech’s support of Ukraine’s digital businesses can be used as blueprint across the world") workflows that further simplify the onboarding experience. - **Support administrators with powerful administration tools –** Ensure that administrators have the ability to [securely review all identity and compliance data](https://www.financedigest.com/assurance-v-security-reassessing-responsibility-for-data-assurance.html "Assurance v Security: Reassessing Responsibility for Data Assurance") – including facial images, document uploads, and watchlist results. Provision the intelligent [automation platform](https://www.financedigest.com/banking-on-snow-automation-platform-for-success.html "Banking on Snow Automation Platform for Success") to give managers a 360-degree of the onboarding journey. Real-time visibility helps manage every step from start to finish and ensure a good customer experience. A quick and straightforward onboarding process is an easy win for [financial services](https://www.financedigest.com/wrapping-financial-services-in-a-security-blanket.html "Wrapping Financial Services in a Security Blanket") organisations. It can potentially also provide them a [competitive advantage](https://www.financedigest.com/turning-big-data-compliance-into-a-competitive-advantage.html "TURNING ‘BIG DATA’ COMPLIANCE INTO A COMPETITIVE ADVANTAGE") in today’s unsettled market. At the same time, the process has to be thorough – organisations can not rush through critical verification and due diligence processes, due to [fraud risks](https://www.financedigest.com/how-can-you-reduce-the-risk-of-fraud-in-b2b-payments.html "How can you reduce the risk of fraud in B2B payments?"). Adopting a unified approach to intelligent automation combined with advanced [digital identity processing capabilities can help cut customer onboarding times](https://www.financedigest.com/playground-xyz-study-finds-carbon-emissions-from-digital-ads-fall-by-63-on-average-when-measured-and-optimized-for-attention-time.html "Playground xyz study finds carbon emissions from digital ads fall by 63% on average when measured and optimized for attention time") from days to minutes, without compromising on safeguards for fraud prevention. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---