The rise of Corporate Digital Identity in banking

The rise of Corporate Digital Identity in banking 

Corporate Digital Identity (CDI) is revolutionizing the Client Experience in Institutional and Commercial banking. Enabling fast, accurate identity validation and verification of corporate customers, it has been set out to foster a truly customer-centric approach to client onboarding and reviews when accessing new products and services. 

Combining real-time public and private information from approved sources to deliver ready-made customer profiles into internal bank systems, CDI brings vast benefits to institutions and customers alike, including faster onboarding, improved customer experience, reduced risk and robust regulatory compliance. 

CDI tackles critical problems faced by the financial industry to drastically improve efficiency, effectiveness and facilitate a much smoother process. 

The evolution of CDI, and its game-changing potential, is something that was delved into during a recent Encompass webinar, as I was joined by industry experts Ivar Lammers: Global Head of Financial Crime, Wholesale Banking at ING, as well as adviser Alan McIntrye. 

The landscape is ripe for transformation 

Growth in the retail banking sector has been unleashed, in part, thanks to significant advancements in identity verification and digitization enabling new user journey, ultimately, the path to digital products with new profit models. 

However, in stark contrast, factors such as complexity, lack of corporate identity transparency and demanding compliance requirements, have led to challenges for corporate, investment and business banks when it comes to following in a similar vein. 

Without this instant picture, banks must curate and create their own view of an entity to perform compliance procedures such as KYC involving a vast amount of public and private data. 

As a result, many businesses are waiting up to 120 days for access to accounts and services and are abandoning processes, leading to significant lost revenue. 

CDI is the future, the time is now

Putting in place the infrastructure for CDI holds numerous game-changing advantages for banks, with webinar panellists calling out the below as some of the most pertinent: 

• Better customer experience 

• Reduced customer outreach 

• Faster onboarding 

• Revenue generation 

• Risk mitigation 

Traditional onboarding, panellists agreed, poses several challenges for banks centred on time and efficiency. Failure to embrace transformation – and the potential of CDI – will see them falling behind and losing out when it comes to grappling with the competition in a landscape where digital identity is increasingly coming to the fore. 

Watch the webinar for further insights on CDI and how its transforming KYC