Why Retail Banks Must See the Light of Digital Identity?

Banking CIO Outlook | Friday, June 19, 2020

Digital identity solutions bring in countless rewards, which retail bankers significantly felicitate.   

FREMONT, CA: Disruptive digital-only banks, changing regulations, and increasing consumer demands have made today's banking digital-first. But the values of digitalization are being held back by identity verification roadblocks. There have been several efforts aimed at optimizing identity verification online, but these attempts have failed to address the challenge in its entirety. However, digital identity solutions can help iron out these identity verification headwinds, assisting the banks to fend off the growing threat to their core business.  

The digital identity revolution is gaining momentum as part of regulations that mandate better information security and the technological advances that allow low barrier-entry into the banking business. But more than all, the move to using digital identity is being propelled by tech-savvy consumers who demand choice, flexibility, and omnichannel banking experience. Digital identity algorithms, when implemented right, can help bankers ease identity verification challenges while also aiding in slashing operational and compliance costs. In retail banking, digital identities can be used in customer onboarding to verify and prove the identity of new customers that apply for opening bank accounts, loans, credit cards, or other services. This technology can also be used to re-verify and re-screen the identity of customers seeking to update their personal information. 

By using digital identity solutions, banks can optimize their compliance models, boost their performance in risk mitigation, and deliver better customer experience. Digital identity verification and proofing are quicker, more comfortable, and cost-effective than their manual equivalents. This boosts the compliance team's efficiency, which in turn frees time for the team to concentrate on other essential areas. Digital identity solutions also remove human error, which increases the effectiveness of financial crime screening. Faster onboarding times positively impact the client experience, and digital identities provide consumers with the security and control they want while enjoying innovative financial services.

While financial institutions continue to focus on identifying risk and rooting out financial crime, they are also aware of the need to place the customer experience front and center in the digital innovation game. It can be said that the digital identity revolution could hold the key to winning the game.

See Also :- Top Banking Tech Solution Companies


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