The Role of Identity Verification in Digital Account Opening
Regardless of how you look at it, enabling digital account opening for credit unions brings with it a number of distinct benefits, all at the exact same time. For starters, it creates a more satisfying experience for members--particularly those who are a part of the younger generations. These people want to bank wherever they want, whenever they want, and however they want. They increasingly use smartphones and other mobile devices to do it and digital account openings are a natural part of that.
Digital account opening can also help to streamline processes in a way that reduces work for back office employees, too. But at the same time, security must remain a top priority. That's why technologies like identity verification will play a critical role in your offerings, helping to prevent fraud, among other potential issues.
The Building Blocks of a Better Digital Account Opening Solution
In general, any digital account opening solution that you choose to invest in should have a number of core features when it comes to creating not only a frictionless experience for your members but an inherently secure one as well.
First, you need to be able to quickly and accurately check the validity of any government-issued ID or other documents that someone uploads during the process. That includes not only their driver's license but also things like their passport as well.
You should also be able to automate due diligence checks when it comes to collecting data from sources like third-party credit bureau providers--both for the benefit of your own staff and your members alike. Not only will this create a faster and more efficient application process for both parties, but it will also help your credit union meet Know Your Customer and Anti-Money Laundering requirements as well.
The Power of Identity Verification
But in terms of security, perhaps the most important goal has to do with digital identity verification itself. Many modern-day solutions use biometric verification processes that actually tie the applicant to the photograph on the ID document that they've provided. This helps to create thorough audit trails that can then be used to investigate instances of fraud or other suspicious activity at a later date. All relevant information is collected into a lone evidence package per applicant, making sure that the people who need that information have it at a moment's notice.
Does this type of identity verification stand poised to extend the digital account opening application process a bit? Certainly--but it also helps dramatically streamline what has historically been a frustrating process for members in particular. One that required them to collect reams of paper to visit a branch in-person for identity verification.
Members get access to an easy process that creates long-term loyalty and helps with the overall growth goals of your credit union. Credit unions themselves can eschew those complicated, paper-based onboarding processes in favor of something that is more in line with the expectations of the modern era.
Bring an Efficient ID Verification Process to Your Credit Union
At FLEX, we understand that while onboarding your members quickly is always a top priority, it can't come at the expense of both security and compliance for your credit union. That's why we've recently authored a helpful guide that talks about these ideas and more, all while going into more detail about our own FLEX ID Scan option that uses character recognition and related technologies to capture details faster and streamline applications across the board. To find out more information, click below to get started.