Balancing Customer Experience with Security and Compliance During Digital Onboarding

by | Apr 26, 2021

Provide Clients With A Simple, Frictionless Digital Account Opening Experience, While Completing The Required Checks And Verifications In Real Time

Doxim recently hosted a webinar with industry experts Ajay Hans from Mobetize and Sunil Madhu from Instnt to discuss how to achieve security and compliance during digital onboarding without sacrificing customer experience (CX). Specifically, we discussed how Doxim’s platform enables a seamless onboarding process with all the required checks, by leveraging the most modern ‘Know Your Customer’ (KYC) technology.

If you were unable to attend the live broadcast, you can watch the webinar on-demand, or read on for an overview of the insights from these business leaders. WATCH THE WEBINAR ON DEMAND


The balancing act between risk, compliance and CX in digital onboarding

Financial institutions are expected to do it all when it comes to digital account opening and client onboarding. They must adhere to stringent security and compliance requirements, while still providing an efficient process and a frictionless customer experience.

As more of our lives are shifting online, this rapid digitization comes with an increased fraud risk that presents a persistent challenge for financial services providers. Stolen or synthetic identities are increasingly used to open accounts, which are then exploited for criminal activities such as fraud or money laundering.

To counter this, financial institutions must complete a series of complex checks to verify the identity of the individual when they apply for a new account. When accounts are opened in a branch, these checks are simpler – the client is present to show a physical photo identification document and to sign the agreements in person.

Due to the digitalization of so many banking processes during lockdown, in-branch services are no longer practical or preferred. Simply put, customers may not want to visit a branch with their documents; they want the choice of interacting with their financial institutions at any time, from the safety of their desk or couch.

Building trust is essential in digital onboarding

Trust is the foundation for onboarding new customers, whether in-branch or online. Consumers are increasingly savvy about digital services and careful about sharing their information. As much as they want digital options, they will shy away from any processes that raise a security flag, especially when it comes to personal finances.

Equally, financial institutions need to be able to trust the new account holder. This is essential for the wellbeing of the institution, not least because as a regulated industry, banks have stringent legal obligations. Financial institutions are legally bound to adhere to KYC (Know Your Customer) processes, as well as anti-money laundering regulations.

Financial institutions must do checks on digital account openers to figure out whether the application is being done by a human or a bot, verify the identification of the human and obtain a credit rating.

For digital account origination, the required identity and credit checks need to happen in the background, in real time and without inconveniencing the client or contravening their data privacy rights.

A combination of point technology solutions vs a single all-inclusive platform

Meeting the requirements for identity verification is complex, as there are many threats and risks that need to be mitigated, such as:

  • Starting with verifying the owner of the device being used
  • Cross-checking the individual’s data
  • Determining that the application is being done by a human (not a bot)
  • Ruling out the use of a stolen or synthetic ID

The aim of this entire exercise is to move “good people” through the origination process seamlessly and stop “bad people” from successfully opening accounts.

Some financial institutions opt for a combination of point solutions, with each tool or data source performing a specific function in the total process. This approach can be inefficient, as coordinating multiple data providers and tools means developing an extensive rule space and updating the logic each time fraud penetrates the system.

Such rules are based on human intelligence which introduces further bias based on that business’s fraud exposure.

The alternative to the point solution approach is an all-inclusive platform that manages the required statutory checks (and more) in real-time, as an integrated part of the account opening process.

The role of artificial intelligence and machine learning in digital account origination

Artificial intelligence (AI) and machine learning are driving further enhancements in the speed and accuracy of identity verification. Big data, real-time decision making, and collective intelligence models allow financial institutions to make a sub-second determination regarding the legitimacy of an individual or flag an application as a fraud risk.

We know that fraudsters follow certain attack patterns and that individual organizations have a specific attack surface. When machine learning is applied across the broader industry, the technology can analyze millions of data points across hundreds of institutions. This collective intelligence is constantly retraining itself, which helps the entire industry to minimize the risk of bot attacks, identity theft and money laundering.

Using machine learning and real-time decision-making, AI-enabled platforms have achieved a 5% reduction in the rejection of good customers and 100% explainable identity verification (FINTRAC compliant). TALK TO US

Doxim’s account origination and identity orchestration goes beyond industry standards

In partnership with Mobetize and INSTNT, Doxim’s account opening and client onboarding solution offers an all-inclusive platform with the latest in identity orchestration embedded into the origination process.

Doxim’s solution, combined with the power of Mobetize and INSTNT, is so sophisticated when it comes to finding fraudulent activity, that it comes with a zero-loss liability guarantee. It’s also worth noting that Doxim is the only organization in the current market that offers this guarantee.

Benefits of Doxim’s solution:

  • Managed services model means quicker to market.
  • Faster top-line growth in the transition to digital.
  • Ability to sign up customers faster, with no exposure to CAPEX/OPEX costs related to fraudulent activity and zero loss liability.
  • A single source of truth for all origination activity across every channel. Never duplicating data or requiring users to transpose documents or details about customers across your enterprise systems.

Using Doxim’s secure platform, financial institutions can provide their clients with a simple, frictionless digital account opening experience, while completing the required checks and verifications in real-time.

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Sean Kennelly
Sean Kennelly, Former Vice President, Product Management, CEM
With close to 15 years of industry experience, Sean Kennelly brings a wealth of technical know-how to Doxim. During his career, he has led both Operation and Managed/Professional Services teams, and been involved in Project and Product Management; he has also held multiple sales leadership roles. For the last decade, Sean has been heavily involved in the support, implementation, design, and planning of Doxim's products and services. This experience, as well as his engagement with North-American regulated industries entities; informs his vision around customer experience, communications and payments.

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