Identity Verification: A Digital Utopia
Download this report to understand how consumer behaviour, operational and regulatory imperatives, and technology are all now converging to make a digital-first approach to identity verification vital for Australian financial institutions.
88%
of consumers see no resumption of branch usage post-pandemic
50%
prefer to digitally apply for a credit card or savings account
53%
of FIs see ID verification as most challenging factor inhibiting digital transactions
The present and future of KYC/AML are digital
The COVID-19 pandemic can be accredited with accelerating the digitalisation of processes and experiences in financial services that was already underway. It has reinforced the realisation that customer experience and cost efficiencies could be enhanced by digitisation and has amplified the rate of change.
KYC/AML represents a key part of the customer onboarding process for financial institutions and contributes significantly towards the overall customer experience. Just like in other areas, COVID has reinforced the view that digital capabilities will be at the heart of KYC/AML long past the end of pandemic. A digital first approach to identity verification and KYC/AML compliance ensures the best possible outcome for both customers and financial institutions.
GBG has partnered with RFi Group to produce this report. The report illustrates why institutions should continue on the path towards further digitalisation and the key learnings as they do so. It demonstrates that institutions that lead in this area can simultaneously provide differentiated customer experiences, enjoy operational efficiencies and minimise risk.
Findings
40% of Australian consumers indicate that during the pandemic they completed a banking task via digital banking that in other circumstances they may have performed by non-digital channels.
Close to 1 in 2 consumers now say a digital channel would be their preferred means of applying for a credit card, a transaction account or savings account.
The proportion of consumers aged 45-54 using a mobile banking app increased from 45% in Mar 2019 to 59% in Sept 2020. The proportion of consumers aged 55+ increased from 26% to 33% over the same period.
82% of customers who say they were highly satisfied with their application and onboarding experience now report similar satisfaction with their loan.
70% of Australian financial institutions believe providing faster KYC and straight-through process during digital onboarding is competitive differentiation.
50% of consumers say they are comfortable with the usage of biometrics for the purposes of identification for financial products, a proportion that increases to almost 80% among Gen Z and Millennials.