BUYER'S GUIDE DOWNLOAD
Digital Onboarding and Verification
Using robust digital onboarding and verification solutions helps to mitigate risk, automate operations, and produce a seamless client and customer experience from the outset.
There are a number of benefits to moving to a digital onboarding and verification platform and this Buyer’s Guide outlines the core things for consideration.
The Essential Guide to Digital Onboarding and Verification
Contents
Digital Onboarding and Verification
Digital onboarding and verification is the process of remotely validating a customer or client's identity and collecting necessary information using digital tools and technologies.
This streamlined approach allows you to verify identities, assess risks, and ensure compliance with regulations without the need for in-person interactions or paper-based processes.
At its core, digital onboarding utilises various technologies to create a seamless, secure, and efficient experience for both businesses and their clients and customers. These technologies may include biometric authentication (such as facial recognition or fingerprint scanning), document verification software, artificial intelligence for data analysis, and secure data encryption methods.
The process typically involves several key steps:
First, customers submit their personal information through a digital platform, often via a mobile app or web interface.
Then, customers may then be asked to provide images of official identification documents, such as passports or driver's licences. Advanced optical character recognition (OCR) and machine learning algorithms analyse these documents for authenticity and extract relevant data.
To further enhance security, many digital onboarding systems incorporate additional verification steps. These might include liveness detection, where users are asked to perform specific actions on camera to prove they are real people and not using static images. Some platforms also utilise video interviews or knowledge-based authentication questions as extra layers of verification.
One of the significant advantages of digital onboarding is its ability to cross-reference information provided against various databases and watchlists in real-time. This includes checks against sanctions lists, politically exposed persons (PEP) databases, and other relevant sources, including banks and financial information. This helps businesses comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations more effectively.
Why use a digital platform
The process typically involves several key steps:
A digital platform for onboarding and verification offers numerous benefits, including increased efficiency, reduced costs, and improved customer experience. It enables faster processing times (think minutes not days!), minimises human error, and allows for seamless integration with existing systems. Digital platforms also provide enhanced security measures and help businesses maintain compliance with evolving regulations more easily, as well as given you audit trails should you need them.
One of the key pain points addressed by digital onboarding platforms is the reduction in customer drop-off rates. Traditional onboarding processes often involve lengthy paperwork, in-person visits, or cumbersome email exchanges, leading to frustration and delayed transactions. Digital platforms streamline this process, allowing customers to complete verification steps quickly and conveniently from their own devices, wherever they are and whenever they have time. This convenience is particularly crucial in today's competitive market, where customer acquisition, retention and future referrals are important. By offering a smooth, user-friendly onboarding experience, businesses can significantly improve conversion rates and customer satisfaction, not forgetting the fundamental element that is risk mitigation.
From a compliance perspective, audit trails are invaluable for internal and external regulatory reporting. It easily allows businesses to demonstrate due diligence in customer verification processes, which is particularly important in heavily regulated industries like financial and legal services. The ability to quickly generate comprehensive reports and access historical data not only aids in regulatory compliance but also provides a competitive edge in risk management and customer service.
The current alternatives
What are the current alternatives?
Traditional alternatives to digital onboarding include manual checks and in-person verification.
Manual checks
Manual checks means teams are directly inputting data, whether using technology or paper-based processes and this also can include physical document verification. This can be time-consuming and there is a risk of human error.
In-person verification
In-person verification requires clients or customers to visit physical locations, this can be inconvenient due to work and family commitments. Plus offices are typically closed outside of core working hours.
What are the disadvantages to these methods?
Both methods are generally slower, more resource-intensive, and less scalable than digital solutions. Plus they contain the added risks associated with human error and delays owing to missing documentation, delays due to cancelled appointments or the need to re-visit offices if new documentation is required.
As mentioned above, one significant drawback of manual checks is the increased risk of human error. Staff members manually verifying documents may miss subtle signs of forgery or inadvertently overlook crucial details. This not only poses compliance risks but can also leave businesses vulnerable to fraud. Additionally, manual processes often lead to inconsistencies in verification standards, as different staff members may interpret guidelines differently or have varying levels of expertise in document authentication. Equally, manual checks might involve staff members uploading client information into software or compliance platforms, once again this method still poses the same level of risk linked to human error.
When considering in-person verification, while offering a personal touch, there are still challenges. It requires businesses to maintain physical locations and have staff readily available. This model also limits the potential customer base to those who can easily access these locations and during office opening hours, as well as potentially excluding valuable customers who live in remote areas or have mobility issues. Furthermore, in-person verification is subject to time constraints, typically limited to business hours, which can be inconvenient for many customers and slow down the onboarding process considerably.
Data management and security challenges
Both manual and in-person methods face significant challenges in terms of data management and security. Paper-based systems are vulnerable to physical damage, loss, or theft, and securing sensitive customer information becomes increasingly complex as the volume of data grows. Moreover, retrieving specific information or generating comprehensive reports from paper-based systems can be a time-consuming and labour-intensive process, hindering efficiency and potentially impacting regulatory compliance efforts.
Delayed transactions
Relying on manual or in-person checks can be inefficient and risky. If a person's circumstances change during the delay, such as new sanctions or adverse media, you might miss critical updates with manual checks. A solution with ongoing monitoring automatically tracks these changes, alerting you if anything new is flagged. This ensures you stay compliant and up to date, without the need for constant re-verification, avoiding the pitfalls of manual processes.
ALTERNATIVES COMPARISON
Feature
Digital verification
Manual verification
In-person verification
Verification within minutes
Verification at scale
Client completes verification anywhere/anytime
Ongoing Monitoring
Security of client data
Real time client communication
Things to look for
When evaluating onboarding and verification platforms, consider the following:
1. Compliance with relevant regulations
Ensure the platform adheres to UK and any relevant international regulations such as AML, KYC, KYB and GDPR. Compliance is crucial to avoid legal issues and maintain the integrity of your onboarding process. Look for platforms that regularly update their systems to reflect the latest regulatory changes and provide detailed audit trails for compliance reporting.
2. Integration capabilities
The platform should seamlessly integrate with your existing systems, including CRM, ERP, and other business tools. This integration ensures a smooth data flow, reduces manual data entry, and enhances overall operational efficiency. Consider platforms that offer robust APIs and pre-built integrations with popular business software.
3. User experience
A user-friendly interface is essential for both your staff and customers. The platform should offer an intuitive, streamlined process that minimises friction and reduces abandonment rates. Look for features like mobile optimisation, clear instructions, and progress indicators and confirmation to enhance the user experience.
4. Customisation
Every business has unique needs. Choose a platform that allows customisation of the onboarding workflow, branding elements, and verification steps. This flexibility ensures the platform aligns with your specific business processes and presents a consistent brand image to your customers.
5. Level of accuracy
High accuracy in identity verification is crucial to prevent fraud and ensure regulatory compliance. Look for platforms with advanced technologies that can detect sophisticated fraud attempts, and understand and use technology to mitigate deepfakes. Consider the platform's false positive and false negative rates as key performance indicators.
6. Ongoing monitoring
Effective onboarding doesn't end at initial verification. Choose a platform that offers continuous monitoring capabilities to track changes in customer risk profiles over time. This feature helps maintain ongoing compliance and allows for timely risk management.
7. SafeHarbour compliance
This is often considered the ‘gold matter standard’ and for conveyancers who take the necessary steps to follow the process set out in the Digital ID standard, they can gain the “Safe Harbour” status for their matter. Ultimately this means that the Land Registry would not seek recourse against the conveyancer in the event their client was not who they claimed to be.
8. Security
Robust security measures are non-negotiable when handling sensitive personal data. Evaluate the platform's encryption methods, data storage practices, and overall security infrastructure. Look for features like multi-factor authentication, regular security audits, and compliance with standards.
9. Billing
Transparent and flexible billing models are important for managing costs effectively. Consider platforms that offer scalable pricing based on your usage, with clear breakdowns of costs. Look for providers that allow you to adjust your plan as your business needs change, without long-term lock-ins.
10. Customer support
Reliable customer support is crucial for resolving issues quickly and minimising disruptions to your onboarding process. Evaluate the level of support offered, including availability (24/7 vs. business hours), support channels (phone, email, chat), and the provider's track record in resolving client issues promptly.
Why choose Checkboard
Checkboard offers a comprehensive digital onboarding and verification solution tailored to the UK market and supports a variety of industries including law firms, conveyancers, estate agents and the automotive industry.
Our platform combines cutting-edge technology with a deep understanding of compliance requirements, providing businesses with a secure, efficient, and user-friendly way to onboard and verify new clients and customers.
Checkboard's solution streamlines the verification process, saves considerable time, minimises risk, reduces operational costs, and helps maintain regulatory compliance while delivering a smooth experience for both businesses and their clients and customers.
Interested in exploring how Checkboard can help you with digital onboarding and verification?
Then get in touch today and one of our team will happily answer your questions, or alternatively you can read more in our guide.
About
Checkboard Limited is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 950508. If you have a complaint that we cannot resolve, you may be eligible to refer it to the Financial Ombudsman Service (FOS). For more information, please visit the Financial Ombudsman Service website.
Security & Compliance
Checkboard has been assessed and certified as meeting the requirements of ISO/IEC 27001:2022. This certification demonstrates our commitment to industry-leading information security practices. Certification applies to our information security management system (ISMS) and not to individual products or services.
You can verify the validity of our ISO certificate by entering our certificate number 265514 via this link.
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