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What is Digital Onboarding?

What is Digital Onboarding?

Practically every one of us that uses the more advanced web services or mobile applications, has experienced some sort of onboarding process, that indicates the most important functions to the user or conducts them for the first time through a specific process (e.g. creating an advertising campaign). Onboarding is designed to simplify the implementation of a new user in the structure of tools that he or she has just started to use, thus preventing the resignation from using a given tool due to its complexity or time consumption.


Digital identity verification

In order to limit the risk of fraud when opening a bank or financial institution account, it is necessary to verify the customer’s identity – this is required by national and international legal regulations. Until recently, verification was related to the physical presence of the client in the bank and the presentation of a document of identification. However recently, due to the widespread use of mobile communication and the Internet, the need to register new customers remotely is growing.


Onboarding – security

The idea is simple – to accelerate the implementation of the fully digital onboarding process and confirmation of the client’s identity. Full automation of these processes is an excellent response to the needs of both the financial institution and regulators – in the field of AML and personal data protection. Not without significance, it is also a great convenience for consumers themselves.


Automatic client verification systems and apps

In order to check whether the user is the same person who appears on the document of identification, the system or application extracts the photo from the document and then makes its biometric comparison with the selfie taken by the user. There are many such systems that do this available on the web. For instance: Trulio, IDNow, DIO or Civic.


The power of digitalization

Onboarding has been used for several years, very often in mobile applications. Banking apps are no longer used to check the account balance or confirmation of transfers, but also to apply for a loan, credit card or to set up recurring transfers. That’s why it’s easy to admit that today, there are no obstacles for digital identification to take place 100% online. Many fintech’s build this advantage over traditional financial institutions – they can quickly register a new customer and confirm their identity in a fully digital way.