Whether by choice or necessity, you probably spend much of your personal time engaging in some form of multi-tasking. Maybe you catch up with a friend on FaceTime while taking the dog for a walk around the block. Or maybe you try to squeeze in half an hour on the treadmill while helping your child practice for a spelling test.The One-Two Punch- Onboarding Customers With Mobile While Combating Fraud (6)

But how often do you have the opportunity to not only improve your revenue, but also protect against fraud?

Shifting consumer demands for companies to meet them on their terms and on their timeframe often collide with the cost and compliance challenges many companies face. What if you could harness the power of digital technology to meet the needs of new customers AND your business? What if you could provide your customers with the fast, easy onboarding experience they expect while at the same time ensuring you are protecting your bank—and your customers—from the growing dangers of fraud?

Anytime, Anywhere Onboarding: Lead with Mobile

It’s clear that today’s digitally savvy, on-the-go customers place a high premium on convenience. Swift and straightforward are non-negotiable if you want to make a good first impression on a potential customer. They will compare the experience you offer—whether opening a new account or applying for a loan—with the experience they are used to getting from their favorite online retail outlet or entertainment platform.

This increasingly comes down to mobile. Consider that mobile is the second most important channel for Generation Y and the digitally fluent[1], and smartphone penetration is expected to reach 91% by 2020.[2]

The largest banking institutions typically have the highest customer satisfaction. This is not because they are the friendliest, but because they embrace digital channels to enhance the customer journey and overall experience.[3] Offering a mobile app is not enough: if your customers are asked to manually input all of their ID information into their tiny smartphone keyboard, you are not a bank that is leading with mobile. If you allow applicants to snap a photo of their driver’s license using technology such as on-device OCR to extract data from IDs and then prefill the information, then yes—now you are leading with mobile. What was once a lengthy, tedious process involving stacks of paper can now be completed in a matter of seconds. You have eliminated unnecessary steps from your onboarding process, making it far more convenient for your customers.

The Power of Mobile Onboarding: Curtail Fraud

Mobile ID prefill capability, although sure to delight customers looking for the convenience of opening an account or applying for a loan using their smartphone, is only as good as its security. Your business must also place a high premium on ensuring the validity of your customers’ information to curtail fraud and finding better ways to comply with the seemingly endless—and always changing—list of regulations. Failure to do so creates a significant risk of heavy fines, customer dissatisfaction and damage to your bank‘s reputation and, ultimately, your bottom line.

The risk is very real: consider that 2016 was a record high year for identity fraud, with approximately 15 million victims.[4] For all its wonders, the smartphone has been, unfortunately, a gift to criminals seeking a new channel from which to perpetrate fraud and launder money. And since your bank may never meet all of its customers face-to-face, governments continue to amplify their requirements for Customer Due Diligence (CDD), including Know Your Customer (KYC) and Anti-Money Laundering (AML) checks.

The question is, can you provide your customers with the flexibility and functionality of mobile onboarding, while at the same time protecting their information and your business from risk?

Fortunately, the answer is yes. By deploying a solution with multiple levels of protection, you can ensure a satisfying customer experience, as well as the integrity of your processes—not to mention avoiding the risk of non-compliance fines.

Here’s how it should work:  Once your customer has snapped a photo of his or her ID and the information has prefilled the form, your mobile onboarding should deploy 100% automated document verification and authentication technology that is not reliant on knowledge workers. Mobile ID verification can validate that the identity document your customer is using for onboarding is authentic and unaltered.

For an extra level of security, allow your customer to take a selfie. Facial recognition software can determine if a live picture of the applicant matches the picture on the identity document. This capability helps your bank reduce fraud by authenticating the applicant is in possession of, and is the true owner of, the identity document used for onboarding. This multi-level protection enhances the customer experience because your applicants are approved to open an account within a single mobile session. At the same time, you speed processing and reduce costs throughout your workflow, while ensuring compliance with regulations.

It’s never been easier to kill two birds with one stone using digital technology. Now, you can deliver the mobile onboarding experience your customers demand while protecting your bank – and your customers – from fraud. Learn more by listening to the on-demand webinar recording hosted by American Banker: “Combating Fraud with Mobile Onboarding: A Win for You and Your Customers.”

 

Sources:

[1] Capgemini, World FinTech Report 2017

[2] Forrester

[3] JD Power Study

[4] Javelin Strategy & Research, Identity Fraud Study

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