Digital onboarding is here to stay. Not only does it help reduce costs and increase conversion rates, it has also proven to be an effective tool for promoting financial massification in markets such as Mexico.
Access to financial services made headway in Mexico in recent years, thanks in part to digitalization. Nearly half the adult population (49.1% of all adults between the ages of 18 and 70) has at least one bank account, according to the 2021 National Financial Inclusion Survey.
Financial inclusion means finding ways for people to better manage their money using banking products and services, such as loans and savings, which is vital for improving their personal economy.
Although the aforementioned data is encouraging in the context of a country with a large informal economy, it also shows there is room to continue developing useful and easy-to-use products for underserved populations.
Against this backdrop, digital onboarding emerges as an essential tool for banks and fintechs wanting to get closer to users and increase their acquisition rates, quickly and efficiently, using technology that makes it easier to open accounts or contract credits remotely. This method simplifies procedures and allows the use of smartphones — the technological device with the greatest penetration in all Mexican social sectors — as a gateway to services.
Given this scenario, it is pertinent for institutions to have reliable and secure processes that promote customer acquisition, with digital padlocks such as proof of life, geolocation, digital signatures and customer consent, as required by Mexican regulation.
THE PROPOSAL FOR AN EFFECTIVE ONBOARDING THAT GUARANTEES INCLUSION
In Veritran, the technological leader in the development of digital business solutions, Mexican organizations have an ally with which they can implement digital onboarding that offers simplicity to users, efficiency for entities and their sales metrics, and sufficient security to satisfy the demands of regulators.
This last point is especially relevant, since Mexican legislation obliges companies to strengthen their anti-fraud capabilities in order to mitigate impersonation and identity theft. Digital onboarding is the solution that will to meet those requirements.
Veritran's Onboarding and Digital Client Identification solution is based in the first instance on an Identity-proofing phase to verify the person is who they say they are. This corroboration is intended to reduce the risk of impersonation.
The applicant's identity documents and biometric data (face, fingerprint, iris) are authenticated using the latest technology. This tool allows banks and fintechs to speed up their acquisition of new customers, strengthen fraud prevention, and comply with the country's KYC (know your customer) regulation.
This way, Veritran creates an accessible, customizable and frictionless journey for the user as they register their data in digital channels. In addition, their personal information can be reused — with prior consent — within a secure ecosystem in order to avoid them having to input credentials again when they request a second product. For example, if the same person wants to open a savings account and then apply for a credit card, a single onboarding is sufficient.
Similarly, Veritran has developed the Onboarding Back Office, a web channel that safeguards updated or modified information about user enrollment, login and account recovery activity, thereby providing control for access to the channel. This, together with the use of facial biometrics and biometric registration, keeps the process of recovering passwords simple.
The firm is also responsible for creating digital channels from scratch, if required, or integrating easily and quickly into existing applications thanks to Xpress Plug. This Software Development Kit (SDK) adds new functionalities and scale without compromising channel security, while at the same time boosting digital innovation, which significantly reduces time to market.
Going back to the main objective of this type of onboarding, the real challenge is to balance ease, speed, and security.
Consumers want satisfactory experiences in all the channels with which they interact, especially in an era in which financial institution no longer require face-to-face interactions for their administrative procedures. Incorporating digital onboarding solutions is therefore not only imperative for keeping in step with the evolution of the markets but is also part of the core of any financial institution that seeks to contribute to financial inclusion.
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