In this pandemic time, digital banking and other financial services have become important for everyone who is living in their homes. People across the world are depending on online banking portals, mobile banking applications, and other remote banking channels more than ever before, even for interactions that used to require a branch visit or a face-to-face appointment with an adviser.
In an ideal society, this rise in the number of digital banking interactions, applications, agreements, and transactions would take place entirely online. From account opening to small business loans, everything depends on an digital banking portal or smart phone app that still involves manual paper processing.
Second wave of automation and AI is emerging in the next few years, in which machines will do up to 10 to 25 percent of work across bank functions, increasing capacity and freeing employees to focus on higher-value tasks and projects.
McKinsey & Company
SME Lending
Governments all across the world are giving economic incentives and assistance programs to companies that have been impacted by the outbreak. Many firms want this money as soon as possible. With an enhanced digital approach, FIs can now assist their business clients when they are most in need.
Security tip: Banks must be more careful regarding loan fraud assaults. Scammers are aggressively attempting to take advantage of the present circumstances in a number of ways, including on-demand fraud (loan origination fraud). This is when criminal requests for a loan as a new client by submitting a fresh request based on the false identification information, such as stolen or duplicates identities.
Consumer Credit
Large-scale company blockages and closures have a major impact on household budgets. As a result, several banks provide urgent loan repayment assistance. On workers, single contractors, and small business owners will increase demand for emergency personal loans, bridging loans, and debt consolidation loans. Mobile application protection solutions can safeguard banking apps from mobile attacks while maintaining a positive client experience.
Security tip: As more clients transact via digital banking applications, banks must increase their app’s protection to access, manipulation, reverse engineering, and malware for safe digital banking experience. Mobile application protection solutions can safeguard banking apps from mobile attacks while maintaining a positive client experience.
Remote Account Opening
During a crisis, banks and financial institutions prioritize the assistance of their current clients. Due to the present economic standstill, loan applications are currently outnumbering deposit accounts. Customer acquisition, on the other hand, remains a top goal for many banks. Even in today’s economic climate, prospective retail and corporate clients want to create new bank accounts.
Security tip: Making sure a candidate is who they say they are is very important in this age of no-touch interaction. When a bank is unable to meet with a customer in person, the danger of fraud increases. Document verification can assist in safe digital banking.
Account Management
Bank clients usually visit branches to make adjustments to their current accounts. The majority of these modifications need a signature. Such as adding a spouse to an existing account, need the bank to verify the new joint owner’s identification.
However, with limited branch hours, consumers unable to visit due to constraints or health difficulties, financial institutions must adopt digital banking through electronic forms, electronic signatures, and digital identity verification, for the convenience of the customer.
Security tip: Account hacking assaults can place when hackers get access to a user’s digital account. Once this has occurred, attackers can attempt to steal cash in a variety of methods, including adding new account beneficiaries or altering the account owner’s contact information or address to help the theft. Fraud detection platforms can continually monitor account activity to prevent, fraudulent efforts to modify the account holder’s name, address, and contact information.
Routine Employee Work
The safety of staff is the first responsibility for all service providers and enterprises functioning in today’s climate. Online meetings and chats for client engagements are some of the rapid moves banks and FIs have taken to safeguard their frontline personnel.
Similarly, by reducing the necessity, FIs safeguard back office. Banks are taking strong measures to digitize the papers that their staff produce by evaluating all forms and documents printed just for a signature.
Security tip: Employees should be trained on how to recognize and respond to phishing and social engineering attacks (then implement random internal testing to track employee performance and identify additional training needs). Create a backup security access strategy for all employees and plan to supply authentication sub modules.
Also Read: Say Goodbye to Legacy Systems AND Welcome True Digital Transformation
Asset Management
Wealth advisers throughout the world are adjusting to the new normal by using digital technologies to continue and to give individualized service at home. Leading with a digital-first approach is important, but tiny, deliberate efforts may make a significant difference. To preserve continuity, wealth managers, private bankers, brokers/dealers, and call centres, are replacing paper forms and signatures with digital equivalents.
Security tip: Although home working is becoming more popular in general, the present financial crisis has surely encouraged wealth advisers to adopt this new style of working more easily. They must now be able to access regulated services via firewalls and other internal IT security regulations. Many people do not want to work from home, thus they may require a second set of authentication keys to having access to the platforms they use.
Treasury Management and Corporate banking
Aside from commercial loans, the corporate banking and treasury management department provides firms with a variety of management services. This capability is supported by specialist sales teams, account managers, and commercial bankers.
While commercial banking processes might be complicated, for enterprises under pressure to get their operations back on track, speed and cost will make all the difference. One of the technologies that can make an instant difference is the electronic signature.
Security tip: Treasury advisors and salespeople may educate their customers on the dangers of hacked corporate communications and phishing schemes as COVID19 instructions.
Home Mortgage
Homebuyers, surveyors, and inspectors in many places are unable to see houses while waiting for mortgage approvals and closings or bringing in innovation through virtual tours. In other circumstances, ready-to-buy homeowners have lost their jobs or been laid off, postponing or cancelling their financing arrangements.
Security tip: Look for a worldwide solution that delivers local trust, such as global data centres to fulfil data residency rules, support for certified electronic signatures, and digital identity verification that covers the sorts of identification process.
Insurance Management
Eliminating paper has long been a strategic objective in this industry, as carriers and banks aim to save costs, enhance the customer and agent experience, and strengthen compliance. Carriers are approaching digitalization in a variety of ways.
PandV Insurance in Belgium, for example, undertook a drive in 2016 to revamp its technological stack, and implement changes ranging from business process automation to electronic forms and digital document archives. The use of electronic signatures has proven to be a key component of this program, beginning with life insurance.
Security tip: The insurance sector, particularly life is not immune to cyber-attacks. Due to the lack of face-to-face connection enable fraudsters to perpetrate app fraud.
Auto Financing
Identity verification, biometrics, and electronic signatures are among the top technologies being used by auto lenders throughout the world to digitize the client experience. Paper forms and physical identity checks are being replaced by digitization.
Security tip: Face comparison and other digital identity verification technologies are used to facilitate remote finance and application rental. Financial institutions and resellers utilize the technology to validate that the distant client is who they claim they are and not a fraudster attempting to spoof the owner of the ID.
Conclusion
Supporting financial and banking clients during the COVID19 outbreak requires providers to adjust in order to support remote transactions. Continuing on the road of digital innovation, while suited to the immediate demands of customers, will aid in the development of customer happiness, loyalty, and retention. It will also put firms in a better position to minimize operational damage.
