Turning digital onboarding challenges into opportunities

By Vera Art, VP of Product, Regula Forensics
Managing the onboarding process digitally can present a number of problems for companies, says Vera Art, VP of Product, at Regula Forensics

People are increasingly frustrated by their lack of control over their personal data and have grown wary about their information being in the possession of third parties. 

After events like Facebook's Cambridge Analytica scandal and the GDPR updates, concerns have grown about how personal data is being used and the near impossibility of deleting it. 

A recent study by Capgemini found that 86% of people are actually willing to share their personal data in order to receive customised services, however, only 36% are willing to share that data with their bank and do not want it exposed to a third party.  

This shows that clients' trust in their banks is actually high, in contrast to third parties. In order to ensure that confidence remains high, extra care must be taken to protect customers’ personal data and their fears over third-party data misuse must be alleviated.  One solution that meets this need is an on-premises ID verification system that remains 100% in-house and 100% on-site. This means all client data remains stored safely on the bank’s servers and is never transferred to third-party servers.

Regula has recently designed just such a solution that allows for fast, secure software solutions for identity document authentication and biometric verification, as well as manufacturing forensic equipment for authenticating identity documents and banknotes. 

Below are listed some of the common types of fraud the solution can combat

  • New Account Fraud can cause tremendous financial loss.  RSA Security stated that around 50% of fraud cases are from accounts less than one day old.  Mandatory ID verification is a simple solution that protects honest customers and thwarts fraudsters.
  • A Presentation Attack is when a false artifact or human characteristic is used to trick biometric capture systems and cause them to fail.  To prevent Presentation Attacks, smart onboarding features such as biometric checks (liveness or face match), are cross-checked with the NFC chip and ID document data.
  • Wire Fraud is when an unaffiliated third party gains access to another person’s bank account. This type of fraud can be prevented by adding additional security layers, such as biometric checks, both during and after the registration of the account. 
  • Sleeper Fraud is a type of credit card fraud where an individual obtains a credit card, establishes a normal usage pattern and repayment history, then maxes out the credit card with no intention of paying it back.
  • Synthetic Fraud is a form of identity theft that combines both real and fake information to create a false identity. To combat synthetic fraud, Regula suggests implementing full-cycle identity verification.  This confirms the individual’s identity in multiple ways, including RFID data, Biometric Check (both liveness and face match), and governmental ID then verifies them through the database.

Overcoming these threats and going digital is much more than a tech upgrade; ID verification has many other tangible benefits as well.  For example

  • Scalability – The ability to open accounts remotely expands capabilities and opens the global market.
  • Cost-efficiency – Decreasing the burden, stress, and errors for in-house teams means fewer expenses overall. 
  • Competitiveness – This goes hand-in-hand with the customer experience. 

These are some of the ways a bank can use an on-site solution to turn digital challenges into opportunities.  By bringing the ID verification process and servers in-house, banks can achieve seamless security and obtain tangible benefits that increase business potential.  

A 100% on-site solution alleviates client concerns about the use of personal data and streamlines the onboarding process making for a positive customer experience;  All of which increases customer confidence and ensures future loyalty to their bank.


About the author:  Vera Art is the VP of Product, Digital Identity Verification at Regula, a leading ID and Identity Verification software provider with global presence and offices in the USA, Belarus, Brazil, Germany, Russia, Ukraine, and the UK.



Featured Articles

Fireblocks buys tokenisation firm Blockfold amid high demand

Fireblocks is acquiring tokenisation firm Blockfold amid rising demand from tier-1 financial institutions to tokenise assets like deposits and stablecoins

Papara will focus on M&A amid expansion, neobank's boss says

Turkish neobank Papara will continue to focus on M&A as part of its European expansion strategy, Chairman Ahmed Karslı is set to tell FinTech Magazine

Wise and Swift join forces on faster cross-border payments

Wise and Swift are joining forces to empower banks and FIs to deliver more cross-border payment optionality as part of a broader long-term partnership

Marqeta: over half of people want Gen AI help with finances

Financial Services (FinServ)

Fintech super-app Rauva to acquire Portuguese bank for €30m


UK's Zopa Bank gets £75m of fresh funding from investors