February 29, 2024

Digital Onboarding in Banking

Digital onboarding is the process of bringing in new customers and providing them with access to the financial institution’s products, services, and facilities. Unlike traditional banking, it is conducted over the internet quickly and efficiently. Banking companies use this to get users’ information without filling out paperwork, over-the-counter payments, and face-to-face submission of documents. Due to the COVID-19 pandemic, this becomes advantageous in reducing virus transmission while conducting banking services. 

Customers no longer need to visit a physical bank to open an account or obtain a loan in digital onboarding. Unlike the conventional way of banking, people can complete transactions in minutes. Thus, banks prefer this system to improve their personalized customer service. However, with the increasing cases of cyberthreats, they face several security challenges, especially in verifying the user’s identity. Customers readily embrace biometrics to conduct secure and convenient payments and other transactions.

Significantly, Visa acknowledges that robust authentication solutions from firms such as LoginID contribute to its objective of improving payment integrity by decreasing fraud and assisting merchants in meeting worldwide regulatory and compliance requirements. The Visa delegated authentication program has been a huge help in promoting delegated authentication for securing payments and online transactions. 

Biometric technology is also a significant component of banks’ digital landscapes. Due to the increased possibility of malicious actors joining up as imposters via remote onboarding, banks require a safe method of establishing the identity of those signing up. Biometrics enables banks to achieve this level of trust since it quantifies an individual’s unique physical or behavioral features.

Today, biometric passports and driver’s licenses are gaining popularity, with the ID photo being compared to a fingerprint or facial scan. Banks use LoginID to enable FIDO2-compliant identity verification during onboarding on their digital platforms. Additionally, financial platforms can strengthen their cybersecurity defenses against cyberattacks by implementing biometric authentication for account logins and transaction confirmation via a digital signature. 

To learn more about digital onboarding in banking, check out this article from LoginID. You can also visit their website to know more about their quality services.