In 2018, MAS released guidelines requiring Financial Intermediaries to implement robust controls when onboarding new customers, fundamental to apply the risk-based approach recommended by the FATF. According to FATF requirements, financial intermediaries identify and verify customers’ identities using independent source documents, data, or information. In the digital ID context, digital onboarding would include measures such as biometric identification, real-time video conferencing, and a secure digital signature.

Digital onboarding has the potential to improve the efficiency and customer onboarding experience. At the same time, it adequately assesses and manages the industry against money laundering and terrorism financing risks. 

What is Digital Onboarding?

When an organisation incorporates its new customers, digital onboarding is the user-organisation relationship that is fundamental to safeguard the company and integrate the customer as a legitimate user. The user provides Personally Identifiable Information, or PII, allowing them to be easily identified in the future. PII consists of IP addresses, login IDs, social media posts, or digital images. Geolocation, biometric, and behavioral data can also be classified as PII. Customers may also undergo face detection and Optical Character Recognition (OCR) checks.

Process

How is Digital Onboarding changing the industry?

Digital onboarding has enabled technology-heavy institutions to better keep track of customers and streamline what would usually be a time-consuming process for the end-user. Being able to transform the process into an immediate and seamless version is extremely important especially now, as the Covid-19 pandemic continues and most businesses transition their operations online.

Benefits of Digital Onboarding

  • Straight-through efficiency

Straight-through processing stands for the percentage of transactions that do not require manual processing. With digital onboarding, the onboarding process can be automated without any manual intervention required. 

  • Secure Application Programming Interface (API) connectivity

API stands for a method for data to connect to applications without the need for the development of a new connectivity infrastructure. Making data accessible from a  centralized location, allowing for optimal usage of software and data. It’s extremely important to safeguard this information against criminals with malicious intent.

  • Better customer experience

Digital onboarding has been extremely valuable in helping businesses increase their conversion rate and customer retention. With a smooth customer experience coupled with protection against any money laundering schemes, Digital onboarding has been adopted widely in the financial industry. 

However, as digital onboarding is still relatively new in the industry, poorly designed digital onboarding platforms have caused customers to flee. A poorly designed digital onboarding process will drag sales conversion and conversion rate optimisation (CRO) is simply vital. Systems with good UI designs are easy to understand and utilise, allowing for a smooth customer process. Furthermore, digital onboarding is able to meet strict regulatory requirements and reduce costs. 

As digital onboarding is still relatively new in the industry, poorly designed digital onboarding platforms have caused customers to turn away. Conversion rate optimization (CRO) is vital, and a badly planned digital onboarding process will have a negative impact on sales conversion. Systems with good UI designs are easy to understand and utilise, which allows for a smoother customer process. Furthermore, digital onboarding is able to meet strict regulatory requirements and reduce costs. 

Regtank’s Digital Onboarding

The digital onboarding feature is designed to onboard new customers remotely using Regtank’s API and client portal. The feature allows Compliance Officers to digitally onboard customers by viewing the customers’ details to verify the customers’ identity. 

What is Regtank’s Digital Onboarding Process? 

Firstly, the Compliance Officers are required to request the Onboarding API from Regtank’s backend to provide to the customers. A link will then be provided to the Compliance Officers to digitally onboard the customers.

Upon receiving the link from the Compliance Officer, the customer must fill in their details. To authenticate a customer, a personal identification card is needed and a Liveness Test is conducted. Once the customer has successfully verified their identity, the customer’s information will be transferred to Regtank’s system for Compliance Officers to review. 

Compliance Officers can view each customers’ liveness profiles on the client portal, simply by clicking on the Liveness ID of the users. The officer can proceed to conduct KYC and approve or reject the customer after reviewing the customer profile.  

Regtank is launching our very own digital onboarding system. Contact us at info@regtank.com to get started.