Digital Onboarding for Banking and Financial Services

Identity Proofing Solutions

Regulated companies must follow Know Your Customer (KYC) procedures.  For financial institutions in the US, the KYC onboarding process is not just about managing risk, but compliance with Anti-Money Laundering Laws (AML) and the US Patriot Act’s Customer Identification Program (CIP) provision. Similar practices for preventing money laundering, terrorist financing and theft are followed worldwide.

Identity verification is a critically important component of KYC and the process of digital onboarding for banks and financial services. r

The Challenges with Remote Identity Verification

Validating every new customer in person is costly, inefficient, and time consuming. Digital onboarding of new accounts is not only easier for banking institutions and customers alike, but also aligns with evolving business models and customer behavior (when was the last time you went into a bank branch?). However, remotely onboarding new customers comes with the increased risk of a fraud.

Many companies have implemented processes that incorporate facial recognition software. Customers take a selfie and that image is matched against the image on their government issued ID. Unfortunately, it’s possible for bad actors to spoof facial biometrics using high resolution cut outs, masks or video. Biometric matching is useless without knowing that the person being matched is a live person.

A comprehensive identity proofing solution for onboarding includes document authentication and liveness detection to prevent spoofing attacks.

4 steps to successfully combatting fraud in Digital Onboarding

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Validate the customer’s government issued ID and documents
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Ask the customer to take a selfie within your onboarding app. Not upload one!
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Determine facial liveness using IDLive Face — is the selfie a real person or a spoofed presentation using an image, cut out, video or mask?
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If liveness is verified validate that the person pictured in the ID is a match with the person presenting the documents.

Find a Digital Onboarding Solution Provider

ID R&D works with leading KYC/Onboarding providers globally and directly with enterprises building an in-house solution. Our passive approach to liveness detection is both frictionless and secure. IDLive Face is Level 1 and 2 iBeta Presentation Attack Detection (PAD) Compliant with perfect scores.

If you are looking fo a solution provider, we can help with recommendations based on your requirements including geography, vertical focus, and more.

Discover the Key to Lowering Abandonment in Digital Onboarding

New customer onboarding is a “first impression” opportunity for financial institutions – from applying for and receiving a loan to signing up for a credit card or opening a new bank account. Banking customers today expect to be able to easily create new accounts online in minutes, not days. Unfortunately, the digital onboarding experience for banks and financial services is often bogged down by time-consuming steps that frustrate users and even force them to have to call for help or visit a branch.

According to a report by Signicat, financial institutions are losing almost 40% of applicants during digital onboarding. Why? Because many processes are too long and too frustrating for customers.

Banks, financial services, and others should take advantage of biometrics to speed up digital onboarding processes. Take a look at the customer onboarding journey.

Biometric identity proofing with liveness detection is an excellent way to ease compliance with KYC regulations while removing unnecessary user friction in during digital onboarding. However, it’s important to select a liveness detection product that doesn’t cause confusion or frustrate users — leading to abandonment. IDLive Face by ID R&D offers an approach that simplifies the user experience while accurately identifying fraud.

More institutions are relying on government issued identification as a trusted source. Face biometrics enables an identity check to ensure the user applying is a match. Liveness detection is critical in the digital onboarding process because it verifies that the user is present, not using a high quality photo, cut out or video representation of the real user in an attempt to fool the system.

See How Liveness Prevents Spoofing During Identity Proofing

Interested in improved identity proofing? Contact us and learn how we can help to make your digital onboarding software more secure and user friendly.

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TIP: Take advantage of the onboarding process by using IDVoice to collect voice data (with permission). By adding less than 20 seconds to the process, you now have a second biometric modality for use in delivering highly secure and frictionless authentication.
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