Why fast, accurate ID checks are crucial for onboarding in the financial sector


Written by Editorial Team

Published January 2020

In this article...

Thorough and efficient identity checking at the onboarding stage is crucial for all organisations in the financial industry. All customers must be checked and verified to comply with KYC and AML regulations and identify potentially fraudulent activity.

The regulations for KYC and due diligence make the onboarding process much more challenging for the financial sector – not only do they need to satisfy legislation requirements, but they need to run those checks as quickly as possible to attract and satisfy the customers themselves. The onboarding process is fast becoming a stand out client service differentiator, those firms that ignore the latest developments are likely to come up short against their competitors.

Customers now expect fast and convenient onboarding when they begin with a new organisation.  Providing a seamless experience sets the tone for the entire relationship between customer and organisation and will contribute to client loyalty. Customers expect a consumer-centric and time-saving approach, and this means that onboarding must be quick and comfortable, ideally carried out online only.

In a report carried out by Signicat¹, 2,000 bank account holders were questioned about the onboarding process. 39% had given up the process partway through due to lengthy delays, and 34% had aborted the process due to being asked to provide too much information. 55% of those surveyed said that they would be much more likely to apply for an account if they knew the process could be carried out completely online.

Clearly, finding a balance between meeting regulatory requirements and satisfying customer needs is necessary.

How digital ID checks speed up the process

Traditionally, identity verification is a lengthy and inconvenient process for both client and organisation. Checking documents manually is slow, expensive and leaves room for many human errors. However, digital identity verification solutions allow the process to be carried out entirely online and is more efficient, effective and accurate; providing a faster, better service for clients, and therefore less application abandonment for increased onboarding rates.

Optimize Verify is a great example of this new technology, offering a flexible platform to perform instant ID checks for global intelligence gathering, enhanced ID checking, anti-money laundering, Know Your Customer and more. You can quickly and easily identify high-risk applicants from thousands of unique data points. It retrieves data from a panel of vendors in milliseconds using a facts-based approach so genuine customers can transact without friction, reducing false positives.


If you’re interested in finding out how you can run ID checks more efficiently and accurately, take a look at our fraud and risk management tool – Optimize – or speak to a member of our team.

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