The integration of Artificial Intelligence (AI) into identity verification processes is poised to revolutionise the digital onboarding landscape, according to a study by Juniper Research.
The research indicates a substantial reduction in the average time spent on each digital onboarding check, from over 11 minutes in 2023 to under 8 minutes in 2028, reflecting a 30% drop.
The increasing accuracy of AI is seen as a key driver behind this efficiency surge. As AI algorithms improve, there is a notable decline in the number of identity checks requiring human agent intervention for review, along with a decrease in the instances where ID photos need to be retaken.
This not only streamlines the verification process but also leads to cost savings for businesses. Beyond efficiency gains, AI is set to play a pivotal role in fortifying digital onboarding against emerging threats, particularly in the realm of synthetic identity fraud. The technology’s ability to adapt and learn makes it a formidable defence against evolving risks.
The research anticipates a continued surge in digital onboarding revenue growth, propelled by the widespread adoption of digital verification practices within the banking sector, especially in the realm of mobile banking.
While the efficiency gains from AI are expected to reduce the cost of individual digital identity verification checks, the escalating volume of checks, particularly in developing regions, is projected to counterbalance this effect.
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Juniper Research forecasts a substantial increase in total spending for banks, surging from $7.4 billion in 2023 to $9.9 billion in 2028, representing a notable 34% growth. As the financial landscape evolves, the study underscores the transformative impact of AI in reshaping identity verification processes and paving the way for a more secure and efficient digital onboarding experience.