From: FinTech Global
Even though the coronavirus pandemic has made digital banking a must-have for banks, many of these financial institutions risk losing customers because of their clunky onboarding practices, according to a new FICO survey.
Having surveyed representatives from 172 banks, the analytics company found that many banks across the US and Canada fail to meet their customers’ online identity fraud and digital banking needs.
For example, 51% of North American banks are still asking customers to prove their identities by visiting branches or posting documents when opening digital accounts. This also applies to 25% of mortgages or home loans and 15% of credit cards opened digitally.
To said Liz Lasher, vice president of portfolio marketing for fraud at FICO, this is no longer a workable process in the days of Covid-19. “The pandemic has forced industries to fully embrace digital,” she said. “We now are seeing North American banks that relied on face-to-face interactions to prove customers’ identities rethinking how to adapt to the digital first economy.
“Today’s consumers expect a seamless and secure online experience, and banks need to be equipped to meet those expectations. Engaging valuable new customers, then having them abandon applications when identity proofing becomes expensive and difficult.”
Only 16% of banks in North Americaemploy the type of fully integrated, real-time digital capture and validation tools required for consumers to securely open a financial account online.
Pointing towards an earlier report, FICO noted that 75% of consumers would be happy to open a financial account online, byt that 23% would abandon the process due to an inconsistent identity verification process.
THe nww survey found that 75% North American banks were planning to invest in an identity management platform within the next three years.
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