By Ozgur Unlu, CEO of 360 Dotnet
A survey undertaken by 360 Dotnet revealed over 60% of mortgage and protection advisers wanted electronic identity verification (eIDV) and anti-money laundering (AML) checks in their system to help simplify their customer journey. It is not astonishing to know that advisers want to enhance their onboarding process and increase security and trust within their business.
It is an onerous and long task for advisers to ensure they have all the correct documentation to progress an application. The impact of Covid has only made this even more challenging by fuelling the digitalisation in the financial services sector and prompting firms to improve engagement with customers. We live in a world where clients prefer their mortgage, protection, or GI insurance application to be handled online rather than visiting the high street. For clients there is an urgency for advisers to make the onboarding process effortless, quick and to ensure they can trust their adviser. This requires them to improve their services and be able to validate a customer’s ID instantaneously. Advisers can do this by selecting software that has eIDV and AML integrated into their chosen system.
Speed, accuracy and efficiency must be improved when onboarding and authorising a customer as fraud has increased significantly. While online transactions grew by 65% according to the RiskOps platform Feedzai, online fraud attack rates alarmingly grew by 233% from 2019 to 2021. Fraud and error in public spending are estimated to cost the taxpayer over £51 billion every year which will rise due to Covid.
Advisers using a system which has eIDV and AML integrated means they can record and electronically identify clients. A person can be verified on the other side of the screen with checks to guarantee only legitimate customers are onboarded. Advisers can send their customers a unique link over messaging, enabling them to verify themselves by taking a photo, or uploading a picture of their passport or driving licence. Advisers can check addresses, investigate PEP’s and sanction hits and identify if they are on the electoral register. eIDV and AML stops financial crime and increases security and trust whilst reducing time delays by speeding up client onboarding.
Having eIDV and AML unlocks a secure digital world, protecting user privacy and control over personal data. It enhances customer experiences and boosts productivity as 25% of all financial applications are abandoned due to difficulties in the registration process according to McKinsey and Company. This worry can be lifted with eIDV streamlining the authentication process.
As most transactions are carried out online selecting a system with eIDV and AML is vital, the fee is trivial compared to the risks associated with fraud and noncompliance issues. Businesses in the financial services industry will attract more customers with eIDV and AML, those who do not could face losing customers.
More businesses are looking for a solution with eIDV so they can give their customers a secure and quicker way to identify themselves. As the world becomes more digitalised new rules and stringent controls will come into play to fight fraud, leading to an increased need for technology.
David Smith, Strategic Relationships Director at 360 Dotnet said: “Client onboarding is a crucial step for everyone in the advice process, customers, and advisers alike. You only get one chance for that first impression and todays customers expect efficiencies, ease of use and speed. Advisers also need to be vigilant, the FCA has a strong focus on identity and mistakes can be costly. At 360 Dotnet we are focused on that first step, making the right first impression, and setting up the advice process to be efficient right from the off. eIDV & AML are just one aspect of how we are powering better customer outcomes through our innovative fintech solutions.”