Establishing identity has been the source of much innovation recently as the challengers in the industry seek to reduce the cost of acquisition and improve convenience when attracting new customers.
Traditionally, we have established identity through the sharing of formal documents from a couple of generally accepted lists. Customers then have to entrust their passport or driver’s license plus various bills and statements to the organisation and hope they are current, readable, appropriate and ultimately returned safe days or weeks later.
Challengers are introducing new approaches to checking vailidity
The “new” kids on the block are using dual camera shots of faces and drivers’ licenses backed up by some software and people to check validity – assuming you have not grown a beard, replaced your glasses or had cosmetic surgery and it works a treat.
I have been through this process with my college-age children who each opened an account with a challenger who had the foresight to offer digital onboarding as well as a contactless debit card for over 16’s – unlike the high street who for some reason think you need to be over 18 to be trusted to tap for a coffee or bus fare.
It worked really well – took only 15 minutes to complete and all three had cards in the post within 24 hours and the freedom of contactless to use on trains, in refectories and vape shops on a daily basis.
This is just one innovation that has started to change the market and I hope will be embraced by other financial institutions in the future. We have to design processes for the masses and be aware of the few that try to abuse them.
Whilst this is great for new customers this innovation does not solve the issues with existing customer data and this is far more of a challenge for the high street financial institutions.
- Who are they doing business with?
- Is it still the same customer that they on-boarded 15 years ago?
- Do they have sufficient data about that customer to effectively screen them for AML and Sanctions?
If you would like to find out how P2 FinCrime can help you and your business please email me at Phil@P2Consulting.com