Reported by Babu Sivadasan

Deloitte’s recent research reveals that 86% of financial services AI adopters say AI will be very or critically important to their business’s success in the next two years. The research points out that AI can help improve efficiency, enable a growth agenda, boost differentiation, manage risk and regulatory needs and positively influence customer experience.

What The SVB Collapse Taught Us

Last year, the fallout of Silicon Valley Bank and Signature Bank underscored the importance of onboarding experiences. The aftermath saw a seismic shift in deposit patterns, as larger banks found themselves grappling with an unexpected influx of business, overwhelming their operational capacities. The repercussions extended beyond mere operational challenges, deeply impacting financial health and revenue streams.

However, the effects of sluggish onboarding processes weren’t confined to commercial giants alone. Retail banks, too, faced challenges, as manual onboarding processes ushered in a wave of dissatisfaction among customers. Delays, lack of transparency and security vulnerabilities cast shadows over customer experiences, tarnishing reputations and eroding trust. The resultant impact rippled across customer acquisition, retention efforts and ultimately, bottom-line performances.

The Impact Of AI-Driven Onboarding

One way for banks and FIs to address these challenges is through digital onboarding, which uses technologies like AI, ML and natural language processing to integrate automation, personalization and security into the onboarding journey. Here’s how AI can impact the onboarding process:

Staying Compliant With KYC And ID Verification

AI algorithms can quickly analyze vast amounts of data 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.

Simplifying Data Capture From Complex Documents

AI-led onboarding can reduce manual data entry. AI tools can also be used to guide consumers through the onboarding process, answer their questions in real time and provide assistance for completing forms and uploading documents.

Likewise, AI can help in the background by optimizing data integration across systems, ensuring that consumer data is accurately captured and stored.

Offering A Flexible And Personalized User Experience

AI-driven onboarding allows consumers to open accounts or access banking services from anywhere, at any time, without the need to visit a branch. Automated systems can quickly verify information, reducing waiting times for account activation.

Read full report: https://www.forbes.com/sites/forbestechcouncil/2024/05/23/how-ai-can-impact-onboarding-at-financial-institutions/?sh=66f8e8948882