Germany and Austria to Adopt Digital KYC for Customer Onboarding
Banks and financial institutions are always searching for ways to impress the customers and the digital onboarding process is one of such ways. Along with better customer experience, digital KYC verification significantly reduces costs, and complying with the regulations is more convenient.
In Europe, Germany and Austria are among the few highly developed states. Unfortunately, their customer onboarding is still manual. Posts and phone calls are used for customer-firm interaction, which leads to human errors from both sides and consumes a lot of time. Now, both of these states have an opportunity to adopt digital KYC and reach the next level of legitimate customer onboarding.
The German Federal Financial Supervisory Authority took the first step in 2014 toward digitization. It encouraged financial institutions to opt for video calls for onboarding clients. It also motivates organizations to team up with Fintechs offering secure AML compliant solutions for frictionless customer onboarding.
With eKYC, both countries can get rid of the traditional time-consuming procedure of client verification. Streamlining the process will become convenient, but the secure and faster onboarding needs artificial intelligence.
Austria is among the first country to adopt AI for identification beginning with the telecom industry. An IVO regulation was enforced in January 2019 to complete the customer identification. Germany has also stepped forward for digital verification, but it is working on the laws to motivate organizations to introduce AI for verification. Both countries are searching for a solution for expensive onboarding procedures through a partnership with fintech.
eKYC provides both countries an opportunity to comply with complex regulations, offer a frictionless onboarding customer experience, and reduce costs.
Know more about seamless onboarding at Digital Identity checks for secure and swift customer onboarding