The next generation of stored data is now available to banks and financial institutions. Opening an account online now is easier and underneath the customer experience is a new  proposed store of information for verification without your interaction. This goes far beyond time savings to print and complete a form and return to the bank.

If the IRS gets hacked what would you think about your branch of a national bank’s vulnerability to an enterprising 15 year old or motivated/experienced hack?

McKinsey and Company

From working around the regulations to rewriting the rules

At many companies, particularly those in financial services, efforts to transform customer journeys have been constrained by the understandable and necessary caution of internal groups responsible for ensuring compliance with regulations. Some companies address this challenge by being innovative about everything but the mandated steps, often leading to a jarring or cumbersome experience for customers: “You can complete this application online, but you then need to print everything and come to the branch next week.”

The best companies focus on the underlying purpose of the rules, engaging regulators and lawyers to show how technological advances can make things better for customers while improving risk outcomes. This process also often uncovers status quo situations where people assume there are constraining regulations—“Things have always been done that way for a reason”—when in fact that isn’t the case.

Example: Digital identification and verification

Advances in optical character recognition and machine learning have allowed technology companies to develop solutions for the verification of government-issued identity documents, such as national identification cards and driver’s licenses, with a high degree of reliability.

Many banks wanted to adopt digital identification and verification to enable online opening of accounts. But internal compliance groups were wary. One bank broke the logjam by going directly to national regulators with a pilot demonstration showing the new, technology-based process was even more reliable than the existing process, paving the way for regulatory acceptance. As a bonus, the digital process automatically captures names, addresses, and dates of birth from documents used to verify identity, so customers don’t even have to type that information when they open a new account online.

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