Adapting to market disruptions, especially during the pandemic, is not an easy task to do and accomplish. Banks must use cutting-edge technology to implement their digital onboarding initiatives, thanks to the rapid advancement of technology.
Customers can register online to access financial institutions’ products, services, or facilities through digital onboarding. Digital onboarding is a time-saving process that reduces the paperwork required to fill out, make cash payments and submit documents. Digital onboarding can be made possible by modern technology with ease and efficiency. Electronic Know Your Customer or eKYC portal is a new technology that allows customers to be verified and financial profiles created remotely.
The onboarding process also establishes the first contact between the bank’s prospective client and the bank. It determines whether the user completes the onboarding process, chooses a bank, or abandons it to do business with another bank.
Financial institutions must also strive to establish a system that includes legal, credit and operations departments. Cyber security is essential for banks to avoid data breaches that could lead to a poor reputation.
Digital banking is characterized by the need to protect sensitive data and avoid viruses, unsecured third party services, spoofing, and unencrypted data. Fraudsters profit from consumers’ inflexible privacy practices. Thieves are looking to steal login credentials and commit fraud by targeting weak passwords and unprotected networks.
Reputable banks should warn their customers to be cautious and assist them in verifying that they are the person they claim to be.
Banks must adapt to their customers’ changing banking habits and e-commerce needs. As people realize its advantages, the demand for contactless and fully virtualized banking services will only increase. These institutions will need to use the most advanced security services such as FIDO2 passwordless authentication to combat fraud and cyber threats.
Payment authentication is vital to protect customers and users from cybercriminals as the internet becomes more vulnerable to cyber threats. AI can also be used by companies to address customer needs better and improve banks’ customer service capabilities in the long run.
Here is an infographic from LoginID for more information about digital onboarding in banking.
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