Financial Services and the Crisis

How to provide financial services online during the crisis and afterwards? 

Banks, insurance companies and other financial institutions repair the damage caused by the COVID-19 pandemic. It is a long process though and several radical changes are awaited in the coming months. The onboarding, financial services distribution and client identification – these are services that need to be fully transferred into the virtual environment.

The coronavirus crisis did not only validate the necessity of this digitalisation, but it also became priceless experience which financial institutions can draw up on now during this transformation.

Digital onboarding

Digital authentication and filing of client’s data without having to go to the branch. For many financial institutions, it is already a common practice which will become a necessity for all without exception. Whereas online registrations used to be a pleasant “bonus” in addition to traditional visits to a financial institution in person, they are a fully-fledged and often preferred alternative thanks to which clients can go through the whole process quickly from their homes using a PC or a smartphone. 

The importance of digital onboarding can be expected to increase even further. The coronavirus crisis was a challenge, which put the efficiency of online registrations and their potential limits to a test. Financial institutions should focus on the full digitalisation of this process, not only within preparations for another possible crisis. What are the main benefits of online onboarding? 

  • Less time required
  • Reduced financial expenses 
  • Better access to financial products
  • Higher data quality
  • No paperwork 

It appears difficult to digitalise the onboarding system. Legal regulations and technical demands require special attention and a professional attitude. Are you planning on implementing the digital onboarding tools in your company? Do not hesitate and contact us!

Digital client’s identification

Authentication of the client’s identity is the most important element of the client’s onboarding. However, the coronavirus situation has shown that it is often necessary to go to the branch even for simple identification (e.g. signature of a contract). The substitution of these traditional “physical” authentication methods with online tools is therefore a topic that is frequently heard in the environment of financial institutions. 

There is growing demand for easier identification. Not only financial companies, which try to implement modern, user-friendly authentication process solutions, but also legislators are trying to support these changes as much as possible through amendments to the legislative framework. The rapid development of the BankID project, which facilitates the signing up for eGovernment and commercial digital services, is a proof of it. 

We will gladly help you with the modernisation of your current identification system not only strategically, but also technically and in terms of legislation. 

Online distribution of financial services

The distribution of financial services digitally is essential to ensure business continuity not only during a crisis. The transfer of these services to a virtual environment is not an easy task, though. It brings a number of challenges – mainly of a regulatory nature. 

A fundamental condition of the process is the compliance of internal policies with AML law. It contains all obligations related to the initial customer identification, to the on-going identification, postponement, reporting of suspicious transactions, etc. 

Financial institutions need to put emphasis on correct communication. They should also consider the customer’s appropriate knowledge. Whereas an actual meeting with the consultant ensures that the clients are told all the relevant details, an online contract conclusion means that customers are left to their devices and their own review of the presented information. Especially at this point, specialist customer care is essential.

Virtual service distribution is the future of all financial institutions. There is still a long way to go between downloading the application and concluding the contract and every single step requires special attention. Should you plan on offering your services and concluding contracts in the digital world, we will gladly assist you.

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