Digital onboarding guide for the banking sector

What are the benefits of digital onboarding? And how do you implement it? We have written guide for you.

Over the past few years, more companies have moved from manual KYC to digital solutions. This comes as a result of AML legislation.

With a digital KYC solution, these companies will now deliver a more modern experience to their customers and themselves.

What is digital onboarding for a banking business?

When reference is made to digital onboarding in the banking sector, it means automation and simplification in their KYC processes. With digital onboarding, all KYC processes take place online, where they can be shared with everyone in the company. Therefore, it also saves time when you don't have to hold personal meetings or have to send these documents back and forth repeatedly.
Digital onboarding gives banks several advantages, such as:

  • That it meets the GDPR and AML data retention requirements

  • To collect information and official documents from customers

  • To assess the level of risk that may be associated with new customers

  • To determine the purpose of the business relationship

  • That sanctions and PEP screenings are automatically carried out on new customers

The benefits of using digital onboarding in the banking sector

To a greater extent, more and more banks are using a digital solution, enabling them to work far more efficiently than before and deliver a more modern and superior experience to their customers. Apart from this, the digital solution also means that the banks will save on the manual KYC process cost and increase productivity.

Using a digital onboarding solution eliminates the time that manual work would have taken, helping the bank's employees save valuable time. In addition, the digital solution in connection with client onboarding will give the bank employees an excellent opportunity to focus on activities of high value rather than sitting with administrative tasks.

The digital solution lets customers verify their identity and open a bank account. This can be done directly from their smartphone. Therefore, the digital key is also considered more convenient for new customers, who do not need to show up at the bank for this to happen.

Better security

By ensuring compliance with the GDPR and AML requirements for storing information and data, you can schedule the documents stored in the system for automatic deletion.

You do not have to worry about whether your information and data will be kept forever. Data confidentiality and privacy are often primary concerns for customers today.

Therefore, if customers believe their data is unsafe with your company, they will not hesitate to switch to a competitor. With the digital solution, data is secured with end-to-end encryption and configurable user permissions that prevent the data from being accessed by an unauthorised third party. It can, for example, by hackers and or employees without the necessary privileges.

Onboarding of new customers with Creditro

Creditro supplies digital onboarding software for, e.g., banks, accountants, and estate agents. We can also help your company with digital onboarding in just six simple steps:

1. Look up your customer or client in the system database

Here you must enter the name of the customer you are looking for in our system. The new customer can either be a legal entity or an individual.
Our system will subsequently search, e.g., PEP, sanction lists, and official company register after a match.

2. Prepare and submit identity verification requests

Here you simply select the information you need from the customer and press send.

3. The customer uploads the documents

Once the customer has received the identity verification request, they can take pictures of the documents with their smartphone and upload them into our system.

4. Reject or approve the documents received

Once the documents have been received, a decision must be made on whether they should be rejected or approved. If the records are approved, a business relationship can begin.

5. Manage the risk assessment

Creditro's KYC solution allows you to easily access, review and update the customer's risk assessment. If there are changes with the customer, the system will notify you of this so that the right decisions and measures can be taken. For example, a difference with the customer can be that they become a PEP.

6. Make sure to keep customer data safe

In compliance with GDPR and AML, all your customer data will be stored securely.

With Creditro Comply, we automate and ensure that all checks and workflows are followed and that the documentation work is in place in connection with an inspection.

In the 1st half of 2022, Creditro surveyed more than 4,000 users, specifically regarding the time spent on the KYC procedure. More than 75% of users had shortened their annual time spent on KYC by more than 95%. This is because documentation is automatically obtained, the right questions are asked, and the controls are in place. This happens while all users are monitored in real-time.

With the digital onboarding Creditro provides, we help financial companies streamline KYC processes, reduce human errors, and save valuable time.

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