Validation of digital identity in financial onboarding

To say that the market is increasingly globalised is nothing new. These days, any financial sector company knows that digitalisation is crucial, and that competitivity will depend increasingly on online channels. However, deciding how to digitalise ourselves, that is, which strategies are the most appropriate, is not so simple. That’s why frequent and detailed monitoring of market changes, including the behaviour and habits of users as well as competition, is essential in facing up to new digital scenarios.

Therefore, the IDC company has carried out a study to evaluate the level of the digital maturity of finacial companies in Spain, and more specifically the factors that lead these companies to implement digital identity validation solutions.

According to the study, one of the key factors of digital transformation will involve capturing and retaining a new type of client, who will have different needs to those of a traditional client and who will require flexible and customisable digital services.

For this, investment will be focused on three areas:

Financial onboarding and digital identity verification

The aim of the onboarding process is to facilitate the registration of new users. Digital identity verification doesn’t just play an essential role in capturing clients, it also facilitates the client’s subsequent management of and interaction with the digital services they wish to access.

So, the optimisation of onboarding is strategic for any financial entity. However, according to the data obtained by the study, only 33% of organisations analysed have implemented digital identity validation systems with automated delivery and validation of information.

The study shows that there are companies with a high level of digital maturity, and therefore increased market competitiveness: 20% of companies use facial recognition in their user identification process, and 13% are already using smart technologies to determine user behaviour.

This raises a question: if financial onboarding and digital identity verification are two strategic factors in online channels, then why do so few companies have advanced solutions implemented?

According to the study, these reasons have nothing to do with technology itself or with the strategy: 80% of companies surveyed considered that company culture is a barrier to adapting their digital channels.

Therefore, although digital channels are considered strategic for current and future competitiveness, there is still a lot of ground to be made up in order to reach an optimum level of digital maturity. Nevertheless, almost a quarter of companies did show a good level of digital maturity, and these are likely to be the ones that will set the pace for the future of digital banking.