The deployment of Artificial Intelligence (AI) in the banking sector can reduce the average time spent per digital onboarding check from over 11 minutes in 2023, to under eight minutes in 2028, representing 30 per cent reduction, a new report has revealed.
The report by Juniper Research noted that, as AI becomes increasingly accurate, it reduces the number of identity checks referred to a human agent for review, and the need for ID photos to be retaken.
This lowers the time and related expenses needed for each verification, the report averred, while anticipating that the application of AI would be crucial in thwarting new dangers like synthetic identity fraud.
According to the report, the expansion of digital verification in banking, especially mobile banking, will keep driving revenue growth for digital onboarding.
“Despite the aforementioned increase in efficiency reducing the cost of each individual digital identity verification check, the growing volume of checks, particularly in developing regions, will offset this. As such, Juniper Research forecasts that total spending for banks will increase from $7.4 billion in 2023 to $9.9 billion in 2028; representing a 34 per cent increase,” the report stated.
The report author, Michael Greenwood further explained that, “Growth will be particularly strong in developing markets, where rising smartphone penetration is making mobile banking more readily available; driving growth in digital onboarding.
“To capitalise on this, verification vendors must develop onboarding processes that emphasize checks other than credit scores, such as mobile operator history, in order to maximise viability in emerging regions.”
