Bank Millennium partners with Onfido for automated identity verification

Polish bank is the latest to turn to AI technology to tackle fraud

by | June 13, 2022 | bobsguide

Bank Millennium Poland has signed a service agreement with UK real identity platform provider Onfido to use the latter’s expertise to automate the identity verification process for new customers.

The bank integrated with Onfido via a single API to enable the automatic verification of new customer identities when they sign up for its digital banking services.

New customers can upload a photo of their government-issued identity document and a self-shot video during the sign-up process.

Onfido will check the uploaded documents for tampering and other fraudulent activities using its in-house machine learning and AI technology.

It will first verify the authenticity of the user’s ID before matching it to the video of their face.

“Opening an account by selfie is very convenient, and customers are happy to use this method. We wanted to make our process even more user-friendly and accessible on most devices, and that is why we chose to work with Onfido,” said Halina Karpińska, director of the electronic banking department at Bank Millennium.

“We based the changes on a detailed analysis of our onboarding flow. We also looked at the best market standards, and, as always, we took into account the opinions of users. Now new customers finish the process already logged in to the application, with an active account that they can immediately use.”

Onfido is an approved identity verification vendor by Polish regulator KNF, permitting Bank Millennium to utilise Onfido in both its digital and branch channels in Poland.

“Bank Millennium is innovating its online customer journey by automating its identity verification, making onboarding quicker and easier,” said Oliver Krebs, senior vice president of EMEA at Onfido

“New users looking to join Bank Millennium no longer have to physically go into the branch to do manual identity verification checks but can join online. Onfido’s solution streamlines the onboarding process, so users can onboard within minutes.”

According to Onfido, the application went live in May, with the implementation completing within a two-week period.

Bank Millennium on track to reach 2024 digitalisation goals

The latest collaboration comes amid Bank Millennium’s ongoing 2022-2024 strategy to further develop its digital capabilities to increase scale and efficiency.

The bank aims to have over three million active customers by 2024, with over 90% of those being digitally active.

Online identity verification adds to the bank’s vault of instant digital services. Earlier this month, the bank announced that more than 200,000 of its customers had already adopted the BLIK contactless payment for instant remittance via mobile app.

The bank also offers 360° Finance, a service that enables customers to add their accounts from other banks to the Bank Millennium mobile app. Bank Millennium expanded its partnership to include Credit Agricole and Getin, facilitating access to the account information of those two banks from Bank Millennium.

Financial industry turns to technology providers to tackle financial crimes

The accelerated adoption of technology in the finance industry has pushed financial institutions to speed up their services whilst bolstering their security.

According to Onfido, fraud has increased by 44percent since 2019, with 90percent of ID fraud being executed via counterfeit documents.

To prevent fraudsters from taking advantage of the banks’ digital onboarding processes, partnerships between financial institutions and fraud detection technology companies have been increasingly common.

According to a survey by risk technology provider Provenir’s recent AI survey, 78percent of the respondents are motivated to invest in AI-enabled risk decisioning to prevent fraud.

Like Bank Millennium, UK bank TSB partnered with Onfido in February to use the latter’s identity verification technology in its customer onboarding journey.

Earlier this month, Dutch payment service provider, Mollie, announced its integration with open finance network Plaid’s API to provide a more secure and easier bank verification experience for merchants.

Payment behemoth Visa also teamed up with digital identity authentication company Prove for its BNPL service to mitigate fraud during the digital onboarding process.

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