A Report by CYS Global Remit Legal & Compliance Office
In a groundbreaking report from Juniper Research, a trailblazer in FinTech and payment market analysis, it is predicted that the integration of AI in identity verification will substantially decrease the average digital onboarding check time from over 11 minutes in 2023 to under 8 minutes by 2028.
This notable 30% reduction in time is credited to the heightened accuracy of AI, which minimizes the necessity for human intervention and repetitive ID photo submissions. Additionally, the pivotal role of AI in combating emerging threats, such as synthetic identity fraud, is highlighted.
The research anticipates a significant upswing in the adoption of digital verification within the banking sector, particularly in mobile banking, propelling the growth of digital onboarding revenue. Despite the enhanced efficiency leading to a reduction in per-check costs, the projected surge in verification volumes, especially in developing regions, is expected to counterbalance this reduction. As a result, Juniper Research forecasts a 34% increase in total bank expenditure, escalating from $7.4 billion in 2023 to $9.9 billion by 2028.
Notably, CYS Global Remit is undergoing a strategic shift from a physical onboarding process to an electronic or digital onboarding approach, recognizing the myriad benefits, including heightened efficiency, reduced paperwork, and improved accessibility. Although currently utilizing a physical onboarding process, CYS is actively transitioning its focus toward the adoption of electronic or digital methods.
Executing digital onboarding without compromising compliance involves harnessing digital technologies and methods to enhance the onboarding process while strictly adhering to relevant regulatory and legal standards. This shift signifies a broader initiative to leverage technology for optimizing onboarding processes, elevating customer experiences, and capitalizing on the efficiencies offered by an automated and digitally driven workflow.
For further details, refer to the full report: Revolutionizing Digital Onboarding: AI's Role in Saving Banks $900M by 2028.