What is Digital Onboarding? Why is it Essential for Your Business?

Digital onboarding is an essential tool for companies looking to offer a fast, secure, and hassle-free registration experience. This process allows users to sign up from any device and location, eliminating the need to go to a physical office.

Thanks to technologies like facial verification and biometric recognition, digital onboarding ensures a smooth and secure onboarding that complies with regulations such as KYC and KYB. From banks to insurance companies, this type of onboarding enhances customer satisfaction, reduces operational costs, and protects against fraud, always making the first impression as efficient as it is reliable.

This article delves into how digital onboarding has become an industry standard and how it can benefit companies of all sizes, all through an efficient, secure, and borderless onboarding process.

What is Digital Onboarding?

Digital onboarding is a process that allows companies to enroll new clients or users entirely remotely (without requiring them to visit a physical office). Through advanced technological tools, users can register, confirm their identity, and start using a service from any internet-connected device.

This type of onboarding ensures an agile and secure onboarding experience. Instead of in-person processes, which can be lengthy and cumbersome, it allows users to complete their registration wherever they choose, with guaranteed authenticity. This approach is used in sectors such as banking, telecommunications, and insurance—industries where security and regulatory compliance are paramount.

Moreover, digital onboarding is key to meeting security requirements and regulations such as Know Your Customer (KYC). Through technological controls and biometric validations, companies can verify the identity of new users and prevent potential fraud. All of this is done automatically and remotely. Thus, digital onboarding streamlines the onboarding process while also providing a seamless and reliable experience.

How Does a Digital Onboarding Process Work?

The digital onboarding process combines advanced technology to validate users’ identities securely and quickly. Here are the key steps:

🔷 Document Verification → The first step involves analyzing an official identity document, such as a national ID, passport, or driver’s license. This includes: 

🔹 Document Capture: The front and/or back of the document is scanned using OCR (Optical Character Recognition) or NFC (Near-Field Communication) technology to accurately and quickly extract data. 

🔹 Anti-Fraud Module: An advanced system verifies that the document is authentic, detecting possible manipulations, forgeries, or alterations.

🔷 Facial Verification → To reinforce authenticity, a biometric analysis is conducted to ensure the person behind the process is who they claim to be. This step includes: 

🔹 Selfie Capture: The user takes a real-time selfie to compare their face with the image on the document. 

🔹 Liveness Detection: This anti-fraud measure, which can be active or passive, verifies that the user is a real person and not an impersonation attempt (such as a photo or recorded video).

Types of Digital Onboarding

When it comes to onboarding new clients, there are different types of digital onboarding that companies can adopt based on their needs and the level of interaction they wish to offer. Here’s an overview of the main types:

⚙️ 100% Online Digital Onboarding → This approach allows clients to complete the registration process entirely remotely and at any time. Thanks to advanced identity verification technologies, such as facial recognition and liveness detection, users can register and authenticate themselves without needing to visit an office. This method is ideal for companies with global reach, as it removes geographical barriers and provides 24/7 access to products or services.

⚙️ Digitalized In-Office Onboarding → This type of onboarding combines in-person presence with digital tools. Although the client must visit a physical office, the process is conducted digitally through devices like tablets or mobile phones operated by company staff. This type of onboarding is useful for complex products that require direct interaction and detailed explanations, but with the advantage of using technology to streamline registration.

⚙️ Onboarding via Video Conference → This approach enables real-time client identity verification through a video call with a company agent. During the video conference, the client presents their identity document, and the agent can guide them through the necessary steps and ask registration questions. It’s an option that combines the security of visual verification with the flexibility of a remote setting.

⚙️ Unattended Video Onboarding → In this process, the client records a video in which they present their identity document and follow verification steps. The video is later reviewed by an agent to validate the identity and complete registration. This method is ideal for situations where the client needs scheduling flexibility, but a thorough review is required before approving the account.

Why is Digital Onboarding Important? What is its Purpose?

Digital onboarding has become a crucial tool for companies seeking to optimize the customer experience from the very first interaction. This type of onboarding allows users to register quickly and easily, removing the burdensome barriers of in-person procedures. Instead of enduring a tedious process, clients can complete their onboarding in minutes from any device, significantly reducing abandonment rates.

Additionally, it enhances security and prevents fraud through facial verification and liveness detection. These tools help accurately verify the user’s identity—a fundamental requirement in regulated industries, where compliance and fraud prevention are top priorities.

Despite its benefits, a recent report revealed that while 90% of financial and insurance companies have swiftly adopted digital onboarding, 64% still find identity verification a complex process for users. This underscores the need for identity verification solutions that are not only secure but also user-friendly, minimizing friction in the registration process.

Moreover, digital onboarding drives customer acquisition. The speed and accessibility of this process make it easier for new users to sign up, translating into higher conversion rates. Many companies that have implemented this technology have seen a notable increase in customer acquisition, as a smooth and secure registration process encourages more people to complete their sign-up.

This type of onboarding also reduces costs and operational time. By automating registration, companies save time and money, eliminating the need for staff and physical resources for repetitive tasks. This allows organizations to optimize their operational structure and allocate resources to higher-value activities.

Finally, digital onboarding ensures regulatory compliance (KYC and KYB). For regulated industries, adhering to identity verification standards is mandatory. This type of process allows companies to integrate these standards automatically, reducing the risk of errors and ensuring that all verifications are conducted in compliance with regulations.

Benefits of Digital Onboarding

Digital onboarding offers companies an agile, secure, and efficient way to integrate new clients. Here’s how:

✅ Time and Cost Savings → Digitalization removes the need for in-person interactions and paper documentation, optimizing resources and speeding up the process.

✅ Enhanced Security Against Fraud → With technologies like facial verification and liveness detection, the process becomes more secure, reducing the risk of identity theft and ensuring compliance with regulations such as KYC and KYB.

✅ Improved Customer Experience → The speed and simplicity of digital onboarding boost customer satisfaction, reduce abandonment rates, and improve retention.

✅ Scalability Without Borders → Being digital, onboarding enables companies to expand globally, providing 24/7 service without physical barriers.

✅ Continuous Monitoring and Improvement → Real-time metrics help identify areas for improvement, constantly optimizing the user experience and processes.

How Can Silt Help with Your Digital Onboarding?

At Silt, we transform digital onboarding to make it secure, fast, and hassle-free. Our platform enables companies to remotely verify their customers’ identities, ensuring that every registration meets the highest security standards. We use advanced facial verification and liveness detection technology to prevent fraud and guarantee that each person is who they claim to be.

Our solution simplifies the onboarding of new clients and integrates seamlessly with your systems, making the registration process smooth and keeping your customers on a single platform without interruptions. With Silt’s support, you can enhance the user experience, reduce time and operational costs, and easily comply with KYC and KYB regulations.

Ready to transform your onboarding process? Trust Silt to make every registration secure, fast, and effective. 🫂🔐