The Rise of Digital Banking

May 4, 2023    |    4 minute read

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Bank accounts in the United States are widely recognized for their exceptional range of benefits, providing unparalleled security, stability, and freedom. These accounts are fortified by rigorous regulatory requirements that prioritize transparency and stability in the banking system. Furthermore, the United States dollar, with its high level of global acceptance and stability, serves as a reliable foundation for American bank accounts. With these advantages in play, the United States offers a banking landscape that is steadfast and thriving. From the robust regulatory environment to the strength of the U.S. dollar, a bank account in the United States is emblematic of financial stability and freedom. 

However, digital banking has allowed individuals and businesses worldwide to access the same convenience, security, and freedom that traditional banking options offer, without the need for physical proximity to a bank branch. As a leader in this space, our organization has found a foolproof method of onboarding new clients and processing transactions remotely while ensuring minimal risk of identity fraud.  

With a focus on enhancing financial inclusion and offering a range of robust services, digital financial institutions can seek to extend the unique benefits of U.S. banking to those who are not U.S. citizens or residents – and by leveraging Aware’s advanced technologies, they can revolutionize the banking industry to provide clients with unparalleled convenience and flexibility, without any compromise on security or reliability. 

The Reason for Global Digital Banking: 

Bank accounts are a common financial tool around the world, providing a secure place to store money and conduct transactions. However, the level of safety and regulation surrounding bank accounts can vary significantly from country to country. In some nations, poor regulation and volatile currency fluctuations can expose account holders to substantial financial risks. As a result, U.S. bank accounts are becoming increasingly sought after by non-citizen individuals around the world; but there are unique challenges associated with providing these accounts to non-citizen people.  

For starters, bank accounts catering to global customers tend to be predominantly digital in nature. This means that account opening, and most transactions, are performed through online or mobile channels. However, these remote processes can adversely impact the bank’s ability to perform robust Know Your Customer (KYC) procedures. These procedures are crucial in ensuring that account applicants and users are legitimate holders. As a result, proper fraud prevention measures must be put in place to counter potential security threats. 

Apart from fraud prevention, there are also technological challenges faced by banks providing accounts to non-citizen customers remotely. In particular, the technology used must simulate an in-person onboarding process, all while maintaining high levels of security. It must also ensure accurate authentication of identification documents from multiple countries in real-time. To add to the complexity of the process, some banks may require two different I.D. vendors in order to meet all the regulatory demands required to open a U.S. bank account.  

As a result, developing a solution that addresses all these issues is a significant challenge for any bank. However, it is an essential step to meet the needs of customers looking for a safer and more secure banking experience. 

Why Incorporate Biometric Authentication: 

Traditional methods of authentication, such as passwords or personal identification numbers (PINs), are no longer sufficient to keep our financial data safe. This has led to the increasing popularity of biometric authentication – a secure form of identity verification that relies on unique physical characteristics for banking fraud prevention. 

Biometric authentication offers a level of security that is virtually impossible to hack. Unlike passwords, which can be guessed or stolen, biometric authentication utilizes a person’s unique physiological traits, such as facial recognition or voice recognition, to authenticate their identity. These methods ensure that only authorized users are granted access to sensitive data, making it a highly effective solution against fraud and identity theft. 

Thanks to technological advancements, implementing biometrics is now more convenient than ever before. With its integration into smartphones, users can easily access banking services on-the-go. This frictionless process eliminates the need for cumbersome authentication methods, improving the overall user experience. Biometric solutions today even incorporate document verification, which allows companies to verify the authenticity of identity documents and match them to the user.  

To ensure the success of remote onboarding and branchless banking services, high-end biometric authentication is essential. To sum it up, with biometric authentication, one can trust that online banking becomes more secure, convenient, and user-friendly.   

Aware’s Solution: AwareID®: 

For these reasons, many companies are utilizing solutions from industry experts, such as Aware. With over 30 years of proven expertise in the field, we offer a comprehensive and reliable biometric authentication solution that meets the needs of today’s banking and security needs: AwareID®. 

Adaptive authentication has revolutionized the current digital banking landscape. The ability to provide reliable and secure onboarding and authentication services is crucial for any financial institution. With this in mind, cutting-edge platforms such as AwareID® have been developed to provide the necessary identity verification, multi-factor authentication, and biometric features to ensure the security of high-value transactions.  

These platforms offer numerous benefits, including advanced document verification capabilities for over 9,000 identity documents across the globe, and easy-to-configure security settings that can be customized to suit specific use cases. AwareID® goes even further by having a flexible architecture that allows for easy integration with other technologies, enabling a seamless user experience.  

The appeal of solutions like AwareID® stems from the ease of installation, and the fact that it is available right out of the box. Such ease of adoption into the banking system enables institutions to focus more on the business, as opposed to the security and authentication elements of customer onboarding. Additionally, with the growing trend of embedded finance in today’s business models, AwareID® is perfect, given that it is built upon the core technological elements of the brand – coupled with the ability to integrate with multiple other providers.  

The outcome is a robust platform that is helping digital financial institutions onboard customers from over 150 countries, acquire essential partnerships with multinational corporations, and improve their Banking-as-a-Service (BaaS) offering. With AwareID® in their portfolio, these financial institutions have the necessary tools to give them an edge in the industry, allowing for successful digital banking services while scaling up as necessary. All these, delivered with the highest levels of security known in the industry, position financial institutions as leaders in digital banking services. 

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