Client onboarding is pivotal to setting the tone for customer experiences and driving organisational growth. The use of AI systems to make onboarding more efficient, a better experience for customers, and safer is an essential opportunity to explore and integrate into financial institutions. Streamlining and automating the onboarding experience can also help with operational challenges such as delays, a large influx of customers, security vulnerabilities, and a lack of transparency.

Digital onboarding can use AI systems to integrate automation, personalisation, and security into the onboarding journey. AI algorithms can quickly analyse vast amounts of data, such as transaction history or personal information, to perform KYC and AML checks, reducing the time required for manual reviews while ensuring accuracy and compliance with regulatory standards. This can speed up the onboarding process while simplifying the process of identifying and mitigating potential fraud.

AI tools can be used for onboarding steps that require manual data entry and uploading of identity documents. Customers can be guided through the process, have their questions answered in real time, and have assistance in completing forms and uploading documents. AI can also be used to optimise data integration across systems, ensuring that consumer data is accurately captured and stored. Automated systems can quickly verify information, reducing waiting times for account activation.

Integrating AI into the onboarding process generates data that banks can analyse to gain insights into consumer behaviour, preferences, and needs. Predictive analytics enable banks to offer customised products and services. This data can also be used to improve cross-selling and upselling opportunities and drive consumer engagement. Interactive elements that use AI, such as chatbots and personalised product recommendations, can personalise the onboarding process for clients.

AI systems can be used to make the client onboarding process more secure and be deployed as a fraud detection measure to identify bad actors. AI can use deep learning technologies to detect anomalies and discrepancies in real time when analysing documents submitted during onboarding and identifying them as fake or tampered with. AI tools can be used in identity verification as well and provide a mechanism for face verification to ensure that the user you are seeing is the same as the user on the identification card.

There are still challenges with the adoption of AI tools in digital onboarding that financial institutions have to reckon with. With AI onboarding, organisations must implement robust security measures, including encryption, multifactor authentication, and fraud detection algorithms to protect against identity theft, phishing, and other forms of cybercrime. Onboarding must also comply with myriad regulations, including KYC, AML, data protection laws, as well as e-signature standards.

Financial institutions want to onboard clients quickly and as unobtrusively as possible, as well as ensuring that the client is legitimate and safe to onboard. AI is a powerful technology that can help banks accelerate client onboarding, comply with regulatory requirements, manage risks, and reduce fraud. Faster onboarding means reduced cost of acquisition, reduced revenue leakage, and happier customers, so embracing AI tools is expected across the sector.

To learn about the future of AI in client onboarding as well as the opportunity to connect with industry leaders, attend the Innovatrix 2nd Client Onboarding and Digital Identity Summit for Financial Institutions in Prague, Czech Republic, on September 18–19, 2024.

For more information, visit our website or email us at info@innovatrix.eu for the event agenda.