Financial Institutions Embracing E-based Banking System

While banking has already been experiencing a 360-degree approach with the invention of digitisation, this pandemic has tamed the financial institutions’ workforce into digitisation mode, enabling notable developments such as remote banking, e-loans, etc.

FREMONT, CA: New trends were set in motion as an impact of COVID-19 in the remote banking and digitalization sector. This triggered financial institutions to enhance new technologies for the healthy functioning of businesses despite the barriers of social distancing restrictions. This has led most of the population to rely on digital interactions where the industry is set up with a new set of challenges to excel in individuality from their competitors and captivate new generations of customers, generally known as tech-savvy. Assuming that e-signatures, digital identity verification, and authentication technologies are unlocking new opportunities for financial institutions, several financial processes are enabled to achieve equilibrium owing to digital transformation.

• Opening bank accounts remotely has become a mandatory privilege for banks, and so financial institutions are forced to initiate remote onboarding, which eliminates the time-consuming process of customers' physical presence at the bank to complete the process. The trend merely came into existence after a positive response over its time of practice, where the majority of customers accessed a new bank account online by March 2020. As digital onboarding solutions are becoming more popular nowadays, financial institutions have begun to look into further paper-based in-person transactions involving signatures and identity verification to adapt them into online modes, resulting in e-forms, e-signatures, and digital identity tools.

• Using e-operations to accelerate digital signatures and forms simplifies the processes involved in loan applications and financial contacts. It is because digitising transactions and applying workflow rules thoroughly eliminates the risk of documental errors. The focus is also split upon mobile channels as mobile lending has experienced a monumental reach in recent years. However, mobile e-signatures with digital audit trails and mobile app shielding for protection from cyberattacks are recommended.

• Despite the digitisation of mortgages being a controversy for over a decade, the pandemic situation has built an urge for innovations, regulations, and adoption faster. Thus, greater adoption of the digital mortgage process, from applications to closings and remote online notarization, has been possible on a large scale in recent times.

• With COVID-19 accelerating the digitisation of the financial sector, an increase in the adoption of e-signatures is widely noticed. This, in turn, enables digital transactions for instant deployment to agents as an autonomous solution and sometimes even integration with an agent portal, e-app, and core system. These solutions are used extensively in business applications, e-disclosure, e-policy, agent licensing, and beneficiary changes.

• Adopting digital tools allows financial advisors to smooth their relationships with clients by delivering personalised service at home. And so, wealth management businesses ought to access remote processing for a convenient and intuitive customer experience by embracing e-signatures, and digital identity verification. It meets customer service demands and enables customer acquisition and retention.

• Commercial banking processes are complicated, involving customised agreements along with contracts seeking signature authorisations and approvals to proceed further. Speed and convenience can make timely changes for a successful business. Thus, the financial sector should focus on introducing mobile capabilities like mobile apps, authentication, and shields along with streamlining the process via e-transactions.

• The auto industry is exposed to pressure due to increased competition, shifting to zero-emission vehicles, depressed margins, the pandemic and a reduction in sales. This, in turn, has put the financial institutions and lenders concerning the auto industry in a tough position. Hence, banks are leveraging technology to reduce costs and improve operating margins, and by using e-signatures and digital verification methods, manual steps and contact during sales are minimised. Thus, using automated document verification to determine the authenticity of significant documents along with a facial comparison with liveness detection and e-signatures are utilised to enable the bounding of signing persons with terms and conditions in a contract.

• As COVID-19 contains lingering effects despite surpassing the dangerous phase, financial institutions are seeking solutions to retain the safety of their employees. Thus, digitising the entire financial process ensures that both remote-working employees and employees working from the office are spared from health threats.

With increasing threats concerning people's health, industry sectors are striving hard with innovations that satisfy their customer needs. Thus, financial institutions have developed remote access to banks, considering people’s time and health as their primary concerns.