AI to Slash Banks' Digital Onboarding Time by 30%
A recent Juniper Research report indicates that the integration of AI in identity verification will limit the time spent per digital onboarding by banks.
AI to Slash Banks’ Digital Onboarding Time by 30%
A recent Juniper Research report indicates that the integration of Artificial Intelligence (AI) in identity verification will substantially reduce the average time spent per digital onboarding check by banks. The study predicts a 30% drop, from over 11 minutes in 2023 to under 8 minutes in 2028. While this efficiency is anticipated to impact banks globally, developing regions with increasing smartphone penetration are expected to drive this growth.
As AI accuracy improves, there will be fewer identity checks requiring human review, reducing the need for retaking ID photos. This not only speeds up verification processes but also contributes to cost savings. AI is also poised to play a crucial role in safeguarding against emerging threats like synthetic identity fraud.
Embracing Digital Advancements
The report envisions continued revenue growth in digital onboarding, especially in mobile banking, due to the widespread adoption of digital verification within the banking sector. Despite the efficiency gains reducing the cost of individual identity verification checks, the growing volume of checks, particularly in developing regions, is expected to lead to a 34% increase in total spending for banks—from $7.4 billion in 2023 to $9.9 billion in 2028.
Michael Greenwood, the author of the report, emphasized the robust growth in developing markets, attributing it to the increasing availability of mobile banking driven by rising smartphone penetration. To capitalize on this trend, verification vendors are urged to develop onboarding processes that emphasize alternative checks, such as mobile operator history, to maximize viability in emerging regions.
Nigeria’s Banks Harnessing the Power of AI
In Nigeria, many banks are already leveraging AI for machine learning algorithms, customer behavior analysis, demographics, and personalized experiences. The use of chatbots for customer service has become a competitive edge among Nigerian banks. Examples include Zenith Bank’s Ziva, Fidelity Bank’s Ivy, First City Monument Bank’s Temi, UBA Group’s Leo, Access Bank’s Tamada, Heritage Bank’s Octopus, and Keystone Bank’s Oxygen. These chatbots, powered by AI, enable users to perform various banking transactions through audio or text conversations.