Finax expedites client onboarding process by 45% using Innovatrics’ facial biometrics
Online securities broker Finax has used a digital onboarding toolkit with online biometric identity verification to reach 70 percent of clients, according to an update of its partnership with Innovatrics. The companies partnered in November to leverage Innovatrics’ digital onboarding solution to digitize the KYC process through facial biometrics.
Prior to integrating facial biometrics from Innovatrics to automate digital onboarding, Finax resorted to a manual process where employees had to first compare picture IDs with selfies and review bank statements. This was a major roadblock in the company’s efforts to scale the business, according to the announcement.
The new online onboarding process minimizes identity fraud and is fully compliant with know your customer (KYC) protocols and anti-money laundering (AML) regulations.
Innovatrics Digital Onboarding Toolkit (DOT) was merged with the Finax webpage in-house, due to its open architecture and API. Before opening an account, a client has to follow a few steps for identity verification.
The first step is to use the webcam or the phone’s camera to take a selfie and a picture of a valid ID. The information on the ID is verified by the AI-based OCR in DOT. The face recognition algorithm analyzes the ID and selfie and compares the machine-readable zone of the ID with the customer data to prevent fraud. The final step is a liveness check by having the subject follow a moving dot for eye movement and another face verification. The customer is then successfully enrolled.
Finax says it has expedited the onboarding process by 45 percent, and 70 percent of its customers have been digitally onboarded. As many as 75 percent of its customers aged 45 and younger have used the digital onboarding function. Future plans include iOS integration and reaching 150 million customers globally.