Amid global cybersecurity and customer experience trends, banking and financial services in India have been adopting better security and CX tools
As more businesses worldwide strive to deliver seamless, secure, and personalized experiences, increasing competition and rising customer expectations have meant that the process of onboarding new customers has been evolving in tandem — to detect and prevent identity theft, and also to intercept and deter potential fraud.
In India, this has involved similar pathways: adopting AI-based identity verification and fraud detection solutions, especially in the banking and financial services industry (BFSI).
What are the early adopters doing to reduce potential addition friction and also make onboarding more productive? Pawan Yadav, Product Head, Jukshio, shared some trends with DigiconAsia.net.
DigiconAsia: How is India is accepting digital onboarding in the BFSI industry? How businesses using AI-driven automation to simplify the mundane onboarding tasks?
Pawan Yadav (PY): In the BFSI, where online interactions are common, digital identity verification not only aids financial institutions but it is also changing how businesses function.
This technology is particularly effective in preventing identity fraud and boost compliance with complex data protection regulations. Tools such as AI, biometrics, and electronic identity verification (eIDV) are transforming how businesses in India verify identities during and after onboarding.
In automating onboarding processes, AI significantly reduces the need for manual intervention and enhancing both speed and accuracy. AI-powered systems can assist India businesses expanding globally to automate identity verification processes more easily and meet Know-Your-Customer/Anti Money-Laundering regulations in multiple jurisdictions, making global expansion simpler and safer.
These benefits have led to positive acceptance of the identity verification technologies in the country.
DigiconAsia: How are businesses in India leveraging digital onboarding to boost personalization and fraud prevention?
PY: Businesses here are increasingly using omnichannel onboarding and data analytics to boost personalization and fraud detection and prevention.
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Omnichannel onboarding:
As customers and potential customers interact with businesses across multiple channels nowadays, their expectation is that onboarding will be seamless no matter the platform. This has led to the growing use of AI and ML for personalized onboarding and faster verification processes through biometric authentication. Customer-centric approaches, such as self-service options and intuitive interfaces, are becoming essential. Additionally, regulatory compliance solutions integrated into onboarding platforms ensure adherence to KYC requirements, while cross-channel consistency in data capture and customer experience processes serves to strengthen brand loyalty and operational efficiency.
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Data analytics:
Digital onboarding allows enhanced fraud prevention through real-time data analysis well after a customer has joined the system. In addition, quality data will be available to allow businesses to tailor every interaction: from document submission to product recommendations. Biometric authentication and AI-powered KYC processes are streamlining onboarding, ensuring secure and frictionless customer experiences. Additionally, predictive analytics are being leveraged to anticipate customer needs, offering customized financial solutions. The growing focus on seamless onboarding — spanning mobile, web, and in-branch — ensures that customer journeys are more intuitive, personalized, and efficient, driving loyalty and engagement in a competitive market.
In terms of keeping personal data safe, businesses in India are being nudged to adopt robust, automated compliance solutions. Privacy concerns are addressed through encryption and data protection measures, while blockchain-based solutions are gaining traction for tamper-proof identity verification in the industry.
After the onboarding process, customer activities are tracked in real time, with AI constantly checking for anomalies and suspicious behavior using historical transaction data: to predict and prevent fraudulent activities before they happen.
Looking ahead, several key trends are expected to define the future of identity verification in India. AI will remain at the heart of identity verification efforts. Also, machine learning models are evolving and becoming more accurate at anticipating fraudulent behavior before they can even take place. Biometrics may see more widespread adoption for continuous authentication throughout a customer interaction on platforms; liveness detection remains essential in combatting deepfakes, by assuring biometric data is collected from genuine sources.
DigiconAsia: What is the impact of widespread use of deepfakes on the country’s adoption and management of electronic verification in the BFSI industry?
PY: As regulations like eIDAS 2.0 come into effect, electronic identity verification will likely become standard practice in BFSI and fintech industries here.
Deepfake detection technology may become even more vital as fraudsters develop increasingly sophisticated methods of deception: AI, biometrics and electronic identity verification will give businesses the tools they need to remain compliant while remaining safe during onboarding processes.
Not only will these technologies help businesses to increase security and reduce fraud, they will also streamline the onboarding process, providing better customer experiences.
DigiconAsia thanks Pawan Yadav for sharing his professional insights with readers.
