Until recently, opening a bank account meant having to visit a physical branch, meeting face-to-face with a bank representative, and signing documents. However, customers are increasingly adopting digital channels to interact and engage with businesses, signalling a new approach for the banking sector.
According to Mckinsey & Company “Growth & Innovation in African Retail Banking” report, there are more banking customers in Africa who prefer digital banking to branch banking. Increasingly, traditional banks are being compelled to reach out to their customers over their preferred channels, such as SMS, WhatsApp or social media. Banks need to address the needs of the modern consumer, and this starts with the digital acquisition and onboarding of clients.
Starting with the initial application to open a bank account, banks need to assess a client’s application through a simplified and streamlined process. This process should be clear and accurate and capture the client's details via their preferred channel. In the event of any changes, all details must be updated real-time to ensure a smooth customer experience.
The next step in the onboarding process is identity verification, where banks need to leverage Know Your Customer (KYC) checks, combined with application details to form an end-to-end view of the type of client they are dealing with.
By using digital solutions such as photo and video call onboarding solutions to facilitate the enrolment of real persons, underpinned by an enhanced verification layer of biometric facial recognition, the bank can cater to customer preferences.
Once all customer analytics have been captured, predictive models based on client behavioural data and Artificial Intelligence (AI)-based data should be used to make real-time decisions in terms of application approvals.
Based on validated data, KYC checks ensure that banks’ approval and decision-making processes are accurate and efficient. Potential fraudsters can be flagged early in the process, saving the bank time, money, and reputational damage.
Digital signatures have replaced physically signed documents and one-time passwords are sent via mobile devices or emails, simplifying the process.
The writer is the Key Account Executive at Infobip Kenya.
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