What is Digital Onboarding?

Onboarding Digital

The digital transformation in financial and insurance is not only creating new business models emergence business. It is, also, changing our patterns of interaction. In that sense, in last years, we have witnessed how it has gone from interacting with banks and insurance companies in person to do so in a digital way.

Undoubtedly, this new way of relating has utterly transformed the contracting and new client registration systems. This redefinition would not have been possible without technological innovation and the support of regulation agencies.

Until relatively recently, banks and insurance companies were required to certify the identity of new customers by an in-person procedure. Anyone could register themselves by a non-contact channel, yet they had to go to an office in order to confirm their true identity. In other words, to verify that the client was the one who had said.

However, in Spain, in February 2016, SEPBLAC, The Executive Service of the Commission for the Prevention of Money Laundering and Monetary Infractions, echoed this problem and published the first Non-Presential Procedures Authorization through Videoconference in February 2016. This procedure was followed by the Authorization of Non-Presential Identification Procedures through Video-Identification in May 2017.

Thus, thanks to the advances in technology, notably new techniques in facial recognition, financial and insurance sectors are able to expand their business possibilities exponentially, as well as taking a great step in their digital transformation. 

What is the Digital Onboarding?

The Digital Onboarding is a process for remote identification which allows future customers to register through 100% digital channels. In this case, their registration is not dependent on a visit to an office to ensure that they are who they say. It is the Onboarding system itself which, with the help of biometric techniques such as facial recognition, ensures the identity of the person who is registering.

Onboarding Simplified Process
Simplified Onboarding System

Essentiatly, if the Onboarding process should be simplified, the following subprocesses can be identified:

  • The Automatic capture of the data from the presented identity document, including the photograph.
  • The biometric analysis between the photograph extracted from the identity document and the sequence of frames and/or video taken from the person who is being discharged.

In any case, these steps are the minimum ones that any Onboarding System should fulfill to ensure that the person who is on the other side is who he claims to be. A client uploading a photograph of himself as an evidence of his identity cannot be regarded as Onboarding.

Onboarding and Know Your Customer/Due Diligence

In Araua RegTech, we stand out because we do not content ourselves with doing things just a little better, we are willing to go the extra mile. That is why our Onboarding solution has been designed to comply with the complete cycle, that is, to amply fulfill the entire process of Know Your Customer-Due Diligence.

In this sense, our value proposition includes, not only the identification process, but also the search in lists of sanctioned and Politically Exposed Persons (PEPs), as well as the calculation of the initial customer risk:

Araua RegTech's Digital Onboarding System

Therefore, all the required preventive measures are integrated just in a single system. The registration as a client is validated as long as the results or all the controls and analysis conducted are compliance with the policies and procedures of the organization.