The new era of opening accounts online is here. Over time, more people have opted to open accounts online instead of in person at a branch, as some of us might be used to. And with online account opening come uncertainties in staying compliant with Bank Secrecy Act requirements.
Even though the process of account openings has evolved, the requirements for opening accounts remain the same. This raises a question: How can one verify someone’s identity without that person being present?
Of course, third-party vendors with solutions can be integrated into the financial institution’s interface to collect all the data needed to open an account. But before the decision to integrate online account openings, it’s important to do some research and resolve some crucial questions.
Start by determining your financial institution’s risk tolerance for online account openings. This will hinge, in part, on the products an online applicant could enroll in. Risk tolerance varies from bank to bank and also depends on the products offered by each institution.
Next, conduct comprehensive due diligence on the third-party vendors you’re considering. Compare what several companies offer with respect to the data collection process and their methods of verifying the customer. Determine whether the vendor can collect scanned or captured photo IDs and a live photo at the time of enrollment, and find out what you’ll be able to provide when an auditor asks for verifying information. Make sure you’ll have easy access to this information.
Never ignore red flags or evasiveness on the part of a vendor. If a potential service provider is unable or unwilling to give you satisfactory answers, it’s not the right vendor for your institution.
Don’t forget to create a marketing strategy for engaging new customers to open accounts online. Visual appeal is important today: showing what the process entails could entice more people to sign up. Referrals from current customers may also draw in more new customers.
Finally, stay positive throughout the entire process. Opening accounts online is still a fairly new advancement in the financial services industry. Everyone is still learning and adjusting to changing times.
