As more and more customers transact online, smart banks are making sure they can stay in the fast lane and onboard as many customers as possible. But is it possible to establish trust with a customer you’ve never met?
Green light for digital onboarding
Challenger banks and fintechs have figured out that today’s customers are unwilling to take the scenic route when it comes to their money. We want to open an account and provide all necessary information online without ever having to step inside a branch.
Traditional banks have been slow to adopt this new approach, citing concerns about security and Know Your Customer (KYC) compliance. But advanced identity proofing solutions spot more fraudulent IDs than bankers can, thanks to the use of highly sophisticated artificial intelligence (AI). This technology can also ensure the person holding the ID is actually the person on the ID through a simple selfie. And with liveness detection, you don’t need the person to be sitting across from you to determine that they’re physically present.
Avoiding speed bumps
Not all identity proofing solutions are created equal, however. They are often too lax and inaccurate, letting fraudsters through. Or they create too much friction for legitimate customers, driving them away.
Take AI, for example. This powerful technology is only as accurate as the data sets on which it was trained. Unfortunately, many solutions were trained on limited data sets intended just for testing, not real-world data with actual fraud attempts. Poor data sets lead to fraudsters slipping through the cracks. They also introduce bias against legitimate customers who don’t look like the people in the data set.
Many solutions claim to be 100% automated, but what happens to the scans they can’t process because it’s from an unrecognized ID type? If your provider doesn’t have identity verification experts to manually process those inconclusive transactions and give you a yes/no decision in real time, you’re going to have to review them yourself — which puts you right back at the starting line.
You also need to make sure legitimate customers don’t abandon the account onboarding process because it’s too burdensome. The best solutions solve this problem through orchestration. Orchestration lets you create dynamic workflows that run the right checks for the right people at the right time.
For example, you might background-check the user’s device before they even enter their name and then require more stringent KYC checks if this device is suspicious. You might even stop the process completely if this device has been used to open fraudulent accounts in the past.
It’s also critical that your provider has bank-grade security practices under the hood. Make sure they have industry-standard certifications such as ISO/IEC 27001, PCI DSS and SOC2. If they don’t, it’s time to hit the brakes and look for an alternate route.
Paving the road to success
The good news is that Jumio makes it simple to trust that your customers are who they say they are and evaluate their risk while allowing them to onboard easily and quickly, wherever they are. Jumio’s identity proofing solutions have bank-grade security certifications and are easy to integrate from a single API. Our AI is trained on vast data sets of real-world production data from around the globe, yielding automation that is vastly more accurate than other solutions, and our verification experts ensure you can get a quick decision on inconclusive scans. Stop by booth 2103 at Money20/20 USA and take Jumio for a spin.