{"id":2417,"date":"2022-06-03T13:21:00","date_gmt":"2022-06-03T11:21:00","guid":{"rendered":"https:\/\/innovatrics.com\/trustreport\/?p=2417"},"modified":"2022-11-08T10:16:54","modified_gmt":"2022-11-08T09:16:54","slug":"how-to-grow-a-business-through-digital-customer-onboarding-you-can-trust","status":"publish","type":"post","link":"https:\/\/innovatrics.com\/trustreport\/how-to-grow-a-business-through-digital-customer-onboarding-you-can-trust\/","title":{"rendered":"How to grow a business through digital customer onboarding you can trust"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" width=\"5485\" height=\"2692\" src=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/cover-10.png\" alt=\"\" class=\"wp-image-2505\" srcset=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/cover-10.png 5485w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/cover-10-300x147.png 300w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/cover-10-1024x503.png 1024w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/cover-10-1536x754.png 1536w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/cover-10-2048x1005.png 2048w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/cover-10-300x147@2x.png 600w\" sizes=\"(max-width: 5485px) 100vw, 5485px\" \/><\/figure>\n\n\n\n<div class=\"wp-block-columns\">\n<div class=\"wp-block-column margin\" style=\"flex-basis:33.33%\">\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h4>Contributors<\/h4>\n\n\n<div class=\"contributor\">\n    <img src=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/1634042876519.jpeg\" class=\"contributor__image\" alt=\"\">\n    <div class=\"contributor__text\">\n        <h3><span class=\" author-d-1gg9uz65z1iz85zgdz68zmqkz84zo2qovwsuhz72zcvt9sz65zz89zz65zz68zz67z0z88zz90z2z90zjuri1z82zz90z52z71zk\">Donal Greene<\/span><\/h3>\n<p><span class=\" author-d-1gg9uz65z1iz85zgdz68zmqkz84zo2qovwsuhz72zcvt9sz65zz89zz65zz68zz67z0z88zz90z2z90zjuri1z82zz90z52z71zk\">Regional Manager EMEA, Innovatrics<\/span><\/p>\n    <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\">\n<p class=\"has-medium-font-size\"><strong>Reliable customer evaluation can make or break a&nbsp;business, especially in finance. Learn how implementing automated identification and digital onboarding in place of manual checks put Home Credit in the leading position of a&nbsp;very specific market.<\/strong><\/p>\n\n\n\n<p>Looking to improve their position in the Philippine microfinance market and take advantage of ever growing demands for loans, Home Credit was facing several challenges. <strong>With ID fakes in circulation, weak internet and slow customer verification, there was ample room for improving the customer onboarding process.<\/strong><\/p>\n\n\n\n<p>Today, Home Credit is the leading credit provider in the market. <strong>Through reliable fraud prevention and radically improving the efficiency and security of onboarding, the company was able to reach previously unavailable customers<\/strong>&nbsp;\u2013 even those unable to get a&nbsp;loan in the past.<\/p>\n\n\n\n<p>The key to unlocking the market\u2019s&nbsp;potential was to reliably verify the identity of the customer. And that\u2019s&nbsp;where Home Credit turned to us at Innovatrics. <strong>Read on to see how we joined forces in order to help grow their market<\/strong> in the Philippines and gain a&nbsp;significant competitive advantage.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-cover has-white-background-color has-background-dim\"><div class=\"wp-block-cover__inner-container\">\n<h3 class=\"has-text-color\" style=\"color:#021b41\"><strong>What&#8217;s inside this report:<\/strong><\/h3>\n\n\n\n<p class=\"has-text-color\" style=\"color:#021b41\">1. <strong>Fraud, unreliable IDs and poor connectivity<\/strong><br>How do you assess the situation?<\/p>\n\n\n\n<p class=\"has-text-color\" style=\"color:#021b41\">2. <strong>A&nbsp;solid biometric framework<\/strong><br>What do you need to make it work?<\/p>\n\n\n\n<p class=\"has-text-color\" style=\"color:#021b41\">3. <strong>Fast and secure loans<\/strong><br>Where do you go after it all works?<\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-columns\">\n<div class=\"wp-block-column margin\" style=\"flex-basis:33.33%\">\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h6><strong>Quick check:&nbsp;<\/strong><\/h6>\n\n\n\n<p class=\"has-small-font-size\">Is biometrics relevant for your company?&nbsp;It is, if you need to:<\/p>\n\n\n\n<ul><li>Verify the identity of&nbsp;customers and&nbsp;establish&nbsp;a&nbsp;trusted relationship with them<\/li><li>Speed up and&nbsp;automate customer onboarding<\/li><li>Reduce staffing costs&nbsp;<\/li><li>Eliminate human error<\/li><\/ul>\n\n\n\n<p class=\"has-small-font-size\">Banks, airports, casinos, ride-sharing services, governments&nbsp;\u2013&nbsp;they all use biometrics&nbsp;to improve their business efficiency.&nbsp;And you?<em>[Learn how biometrics can help&nbsp;<\/em><em>your business.<\/em><em>]<\/em><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\">\n<h2>A&nbsp;tough nut to crack<\/h2>\n\n\n\n<h3>Entering the Philippines\u2019 loan market<\/h3>\n\n\n\n<p>Faced with the task of improving processes in a&nbsp;market of <strong>110 million people spread over more than 7,500 islands<\/strong> with variable internet coverage, Home Credit\u2019s&nbsp;Data Science Lead Jan Krp\u00e1lek needed to address several issues in a&nbsp;single solution.<\/p>\n\n\n\n<p>With <strong>more than 20 different IDs<\/strong> available both legally and illegally (a&nbsp;good fake costs around $20), identifying a&nbsp;customer wasn\u2019t as straightforward as it would be elsewhere. Moreover, Jan had to think about <strong>how to include customers with slower internet connection<\/strong> and other country-specific challenges. Together with Donal Greene at Innovatrics, they set out to tackle these face to face. Literally.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns\">\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"><\/div>\n\n\n\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\">\n<h2>Slow processes, difficult scaling<\/h2>\n\n\n\n<h3>Understanding the market<\/h3>\n\n\n\n<p>Although Home Credit had had a&nbsp;fingerprint-based customer identification system in place since 2012, the situation in 2019 called for an improvement. Demand for microfinance products was booming&nbsp;\u2013 and by speeding up the processes, Home Credit could grow their business significantly, all the while helping the local population with greater credit availability.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>\u201c<em>With the old system, customer&nbsp;verification took weeks and was very vulnerable to fraud attempts, raising suspicion.&nbsp;Poor internet and point-of-sales coverage made scaling risky and difficult to manage.\u201d<\/em><\/p><cite>\u2013 Jan Krp\u00e1lek, Home Credit Philippines<\/cite><\/blockquote>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns\">\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"><\/div>\n\n\n\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\">\n<p><strong>From the customer\u2019s&nbsp;point of view, getting a&nbsp;micro-loan before 2019 was a&nbsp;bit of a&nbsp;stretch: <\/strong>with uncertain results and weeks of waiting time, one couldn\u2019t rely on getting financed in time (if at all). In the Philippines, this could easily make or break a&nbsp;family business.<\/p>\n\n\n\n<p><strong>From the technological viewpoint, we needed to answer a&nbsp;whole pool of difficult questions. <\/strong>How do you reliably verify new customers using a&nbsp;slow internet connection? How do you manage fake IDs in circulation? How do you cut the time needed for verification so the service is attractive? And, most importantly&nbsp;\u2013 how do you keep it viable for the business?<\/p>\n\n\n\n<p>In the end, a&nbsp;little bit of everything was needed to make all of this fall into place. <strong>Using biometric onboarding meant every smartphone could be used as a&nbsp;reliable and safe identification tool<\/strong>, and also allowed for a&nbsp;complete rebuilding of the whole application process. Employing machine-learning and optimising data transmissions on top of this, made the whole thing technologically viable and reliable.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large desktop-only\"><img loading=\"lazy\" width=\"1024\" height=\"604\" src=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infografika-mala-09-1024x604.png\" alt=\"\" class=\"wp-image-2482\" srcset=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infografika-mala-09-1024x604.png 1024w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infografika-mala-09-300x177.png 300w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infografika-mala-09-1536x906.png 1536w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infografika-mala-09-2048x1208.png 2048w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infografika-mala-09-300x177@2x.png 600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full mobile-only\"><img loading=\"lazy\" width=\"1667\" height=\"5799\" src=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infografika-mobile-11.png\" alt=\"\" class=\"wp-image-2553\" srcset=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infografika-mobile-11.png 1667w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infografika-mobile-11-86x300.png 86w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infografika-mobile-11-294x1024.png 294w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infografika-mobile-11-589x2048.png 589w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infografika-mobile-11-86x300@2x.png 172w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infografika-mobile-11-294x1024@2x.png 588w\" sizes=\"(max-width: 1667px) 100vw, 1667px\" \/><\/figure>\n\n\n\n<p>But before we could start implementing technology, we had to thoroughly understand the specifics of the challenges. Let\u2019s&nbsp;look at them, one by one.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns\">\n<div class=\"wp-block-column margin\" style=\"flex-basis:33.33%\">\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h6>Three steps to securing a&nbsp;loan, the new way:<\/h6>\n\n\n\n<div class=\"wp-block-columns bottom0\">\n<div class=\"wp-block-column\" style=\"flex-basis:20%\">\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" src=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/icon-3.png\" alt=\"\" class=\"wp-image-2433\" width=\"35\" height=\"39\"\/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column\" style=\"flex-basis:80%\">\n<p class=\"has-small-font-size\">1. Submit a&nbsp;photo of your ID and your selfie&nbsp;\u2013 either in person at POS, or simply upload it on your mobile app.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns bottom0 top0\">\n<div class=\"wp-block-column\" style=\"flex-basis:20%\">\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"34\" height=\"39\" src=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/icon-1.png\" alt=\"\" class=\"wp-image-2428\"\/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column\" style=\"flex-basis:80%\">\n<p class=\"has-small-font-size\">2. Have your identity and creditworthiness verified within minutes.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns top0\">\n<div class=\"wp-block-column\" style=\"flex-basis:20%\">\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"38\" height=\"39\" src=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/icon-2.png\" alt=\"\" class=\"wp-image-2429\"\/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column\" style=\"flex-basis:80%\">\n<p class=\"has-small-font-size\">3. You have the obtain credit and are good to go.<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\">\n<h3>From manual verification to instant smartphone onboarding<\/h3>\n\n\n\n<p>The overall performance of the user onboarding process greatly depends on four key factors, each of which is significantly influenced by what identity verification system is in place.<\/p>\n\n\n\n<h4 class=\"has-text-color\" style=\"color:#85b7e2\">Factor #1: Fraud avoidance<\/h4>\n\n\n\n<p>Originally, customer onboarding entailed a&nbsp;lengthy process of manual data processing, and was vulnerable to fraud&nbsp;\u2013 repeatedly. There was no reliable, permanent solution for fraud prevention. <strong>We needed something to verify the applicant\u2019s&nbsp;identity against an existing database, fast.<\/strong><\/p>\n\n\n\n<h4 class=\"has-text-color\" style=\"color:#85b7e2\">Factor #2: Creditworthiness check<\/h4>\n\n\n\n<p>Facial recognition is useful not only for onboarding: improved identification reliability aids in accurate creditworthiness assessment, often marking the difference between getting or losing a&nbsp;customer. <strong>Setting up credible assessments of creditworthiness would allow Home Credit to reach previously unavailable customers<\/strong> and enable their financial inclusion at the same time.<\/p>\n\n\n\n<h4 class=\"has-text-color\" style=\"color:#85b7e2\">#3: Resource management<\/h4>\n\n\n\n<p>Implementing facial recognition into physical points of sale would fix the most pressing issues, but it wasn\u2019t the game changer Jan and Donal were looking for. Even if Home Credit had enough branches to reach all potential customers, the process would still require a&nbsp;lot of physical resources, seriously limiting business growth.<\/p>\n\n\n\n<p><strong>Instead of expanding the physical presence of Home Credit, they set out to develop an automated, digital solution<\/strong>. This would cut the verification time from weeks to minutes as well as improve safety and accuracy.<\/p>\n\n\n\n<h4 class=\"has-text-color\" style=\"color:#85b7e2\">#4: Access to onboarding<\/h4>\n\n\n\n<p>While points of sale are necessary for some operations, they also have associated costs and are not infinitely scalable. <strong>Jan and Donal found the answer to business growth through enabling remote and mobile onboarding through smartphones<\/strong>.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>\u201cBiometric face identification coupled with the smartphone app we developed, enabled Home Credit to onboard customers remotely and automatically, requiring no human staff involvement in most cases.\u201d<\/p><\/blockquote>\n\n\n\n<p>What\u2019s&nbsp;more, after going through the verification once, customers could have access to Home Credit products repeatedly and at any time.<\/p>\n\n\n\n<h2>Technological challenges: speed, internet connection and costs<\/h2>\n\n\n\n<p>After understanding the shortcomings of the current system, it was Innovatrics\u2019 turn to propose a&nbsp;sound technological solution. In order for Home Credit <strong>to successfully expand, the technical aspects needed to be investigated, specified and paired with appropriate solutions<\/strong>.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns top0 bottom0\">\n<div class=\"wp-block-column margin\" style=\"flex-basis:33.33%\">\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h6>Expanding your business to a&nbsp;new market?<\/h6>\n\n\n\n<p class=\"has-small-font-size\"><strong>These are some points to think about if you need to verify the identity of your customers for onboarding:<\/strong><\/p>\n\n\n\n<p class=\"has-small-font-size\">1. How many legal IDs are accepted in your target country?<\/p>\n\n\n\n<p class=\"has-small-font-size\">2. What local specifics might complicate receiving reliable identification?<\/p>\n\n\n\n<p class=\"has-small-font-size\">3. How common are frauds and fakes?<\/p>\n\n\n\n<p class=\"has-small-font-size\">4. How stable and widespread is the internet connection in the country?<\/p>\n\n\n\n<p class=\"has-small-font-size\">5. Are there any onboarding processes already in place? What are their shortcomings?<\/p>\n\n\n\n<p class=\"has-small-font-size\">6. Is there a&nbsp;way to digitise the whole process? How?<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\">\n<h4 class=\"has-text-color\" style=\"color:#85b7e2\">Challenge #1: Broad variety of legal IDs is difficult to process<\/h4>\n\n\n\n<p><\/p>\n\n\n\n<p>As mentioned previously, legal IDs in the Philippines come in a&nbsp;wide range of different forms: anything from plastic cards to laminated typewritten paper. To address this, <strong>the team needed to create a&nbsp;system that would identify which particular ID they were looking at, extract biometric information and verify whether it\u2019s&nbsp;real <\/strong>by matching it to associated data.<\/p>\n\n\n\n<h4 class=\"has-text-color\" style=\"color:#85b7e2\">Challenge #2: Availability of cheap fake IDs helps fraudsters<\/h4>\n\n\n\n<figure class=\"wp-block-image size-large width640\"><img loading=\"lazy\" width=\"1024\" height=\"683\" src=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/philipines-1024x683.png\" alt=\"\" class=\"wp-image-2479\" srcset=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/philipines-1024x683.png 1024w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/philipines-300x200.png 300w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/philipines.png 1500w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/philipines-300x200@2x.png 600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>A&nbsp;high-quality fake ID in the Philippines costs about $20. And even though institutions can flag a&nbsp;fraudster by their name and address, he or she can easily try it again somewhere else, using a&nbsp;different fake ID. <strong>This called for a&nbsp;quick way to process IDs and verify their validity<\/strong>.<\/p>\n\n\n\n<h4 class=\"has-text-color\" style=\"color:#85b7e2\">Challenge #3: Local specifics complicate proper identification<\/h4>\n\n\n\n<p>A&nbsp;series of issues specific to the Philippines presented additional challenges for the system. This placed extra importance on proper adjustment of existing technologies to ensure reliability and repeatability of customer onboarding.<\/p>\n\n\n\n<h4 class=\"has-text-color\" style=\"color:#85b7e2\">Challenge #4: Poor internet connectivity limits data transfer<\/h4>\n\n\n\n<p>You can easily get 4G in larger cities, but not so much in the rest of the country. Biometric identification requires data to be sent over the internet, but only focusing on the cities would drastically limit business reach and growth. And so, at Innovatrics <strong>we needed to come up with a&nbsp;very lightweight solution that doesn\u2019t use much bandwidth<\/strong>.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns top0\">\n<div class=\"wp-block-column margin\" style=\"flex-basis:33.33%\">\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h6><strong>How to tell a real face from an image or video?<\/strong><\/h6>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" src=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/HC4.gif\" alt=\"\" class=\"wp-image-2485\" width=\"111\" height=\"187\"\/><\/figure>\n\n\n\n<p class=\"has-small-font-size\">Did you know there is a thing called Liveness Check that can differentiate humans from digital media? Learn more&nbsp;about how it works&nbsp;from the&nbsp;<a href=\"https:\/\/www.innovatrics.com\/resources\/facial-liveness-checks-active-passive-or-both\/?_ga=2.35202017.1907634737.1634554912-260233893.1633953560&amp;utm_source=Trust-report&amp;utm_medium=Site&amp;utm_campaign=Unfair-AI&amp;utm_content=Home-credit\" target=\"_blank\" rel=\"noreferrer noopener\">white paper.&nbsp;<\/a><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\">\n<h4 class=\"has-text-color\" style=\"color:#85b7e2\">Challenge #5: Profit is impacted by long durations and high costs of onboarding<\/h4>\n\n\n\n<p>If the onboarding process takes days, or even weeks, and requires a&nbsp;lot of manpower, the cost of onboarding a&nbsp;single client mounts fast. This makes the business model potentially unsustainable in the long term. <strong>Keeping costs down<\/strong> was therefore not only beneficial, but necessary.<\/p>\n\n\n\n<h4 class=\"has-text-color\" style=\"color:#85b7e2\">Challenge #6: Relying on physical POS limits growth<\/h4>\n\n\n\n<p>Even if Home Credit managed to build and maintain tens of thousands of points of sale necessary to reach those millions of potential customers, business growth would be limited by requirements to rent branches, train and pay staff and adhere to opening hours. The only way around this was <strong>a&nbsp;remote, digital solution<\/strong>.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns top0 bottom0\">\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"><\/div>\n\n\n\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\">\n<h2>Many technologies, a&nbsp;single goal<\/h2>\n\n\n\n<h3>Building a&nbsp;solid framework around biometric data<\/h3>\n\n\n\n<p>After firmly establishing the technological requirements, Donal assembled a&nbsp;team at Innovatrics to fuse several different technologies in a&nbsp;single, custom-built solution.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>\u201cIn the end, we came up with an efficient process that Jan could trust, and that Home Credit could rely on to further improve their market position.\u201d<\/p><p><\/p><cite>\u2013 Donal Greene, Innovatrics<\/cite><\/blockquote>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns top0 bottom0\">\n<div class=\"wp-block-column margin\" style=\"flex-basis:33.33%\">\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"152\" height=\"136\" src=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/Group-536.png\" alt=\"\" class=\"wp-image-2497\"\/><\/figure>\n\n\n\n<p class=\"has-small-font-size\">Biometrics enabled us to <strong>cut customer onboarding time from weeks to minutes<\/strong> and access a completely new segment of customers previously flagged as non-creditworthy everywhere else.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\">\n<h4 class=\"has-text-color\" style=\"color:#85b7e2\">Solution #1: Sticking to the most common legal IDs covers 98% of the population<\/h4>\n\n\n\n<p>Identifying and processing dozens of different ID types is doable, but lengthy and costly to implement. However, our analysis showed that <strong>it\u2019s&nbsp;sufficient to only work with 9 out of the 20 IDs, as 98% of the population owns one of these 9 documents<\/strong>. This alone significantly reduced the time and expenses required for implementation (and maintenance) of the proposed remote onboarding system.<\/p>\n\n\n<div class=\"small-takeout-box\">\n    <div class=\"row\">\n        <div class=\"col-lg-5 col-4\">\n            <img width=\"227\" height=\"227\" src=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2020\/12\/thumbnail-10-227x227.png\" class=\"attachment-small-takeout size-small-takeout\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2020\/12\/thumbnail-10-227x227.png 227w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2020\/12\/thumbnail-10-150x150@2x.png 300w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2020\/12\/thumbnail-10-1024x1024.png 1024w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2020\/12\/thumbnail-10-150x150.png 150w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2020\/12\/thumbnail-10-186x186.png 186w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2020\/12\/thumbnail-10-414x414.png 414w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2020\/12\/thumbnail-10.png 1301w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2020\/12\/thumbnail-10-227x227@2x.png 454w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2020\/12\/thumbnail-10-300x300@2x.png 600w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2020\/12\/thumbnail-10-186x186@2x.png 372w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2020\/12\/thumbnail-10-414x414@2x.png 828w\" sizes=\"(max-width: 227px) 100vw, 227px\" \/>\n\n        <\/div>\n        <div class=\"col-lg-7 col-8\">\n            <div class=\"small-takeout-box__content\">\n                <a href=\"https:\/\/innovatrics.com\/trustreport\/how-the-accuracy-of-face-recognition-technology-has-improved-over-time\/\" class=\"small-takeout-box__read-more\" target=\"_blank\">Read more<\/a>\n                <h2 class=\"small-takeout-box__title\">\n                    <a href=\"https:\/\/innovatrics.com\/trustreport\/how-the-accuracy-of-face-recognition-technology-has-improved-over-time\/\" target=\"_blank\">\n                        How the accuracy of face-recognition technology has improved over time                    <\/a>\n                <\/h2>\n            <\/div>\n\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<h4 class=\"has-text-color\" style=\"color:#85b7e2\">Solution #2: A&nbsp;robust database, high-performing algorithm and machine-learning address both fake IDs and local specifics<\/h4>\n\n\n\n<p>With the right algorithms in place, verifying a&nbsp;person\u2019s&nbsp;identity is quick and reliable, even in country-specific environments. <strong>Machine-learning ensures that the algorithm gets more accurate as it works with more data, enabling further improvement in reliability<\/strong>.<\/p>\n\n\n\n<p>In the Philippines, <strong>this completely changed the rules of the game, averting fraud and building trust with a&nbsp;new customer base<\/strong>.<\/p>\n\n\n\n<h4 class=\"has-text-color\" style=\"color:#85b7e2\">Solution #3: Small data packets over weak internet bring speed and reach<\/h4>\n\n\n\n<p>The remote onboarding system we used works with photographs of both the ID and the applicant\u2019s&nbsp;face, so the logical assumption would be that we need to transfer both of these, sending large amounts of data even over weaker networks.<\/p>\n\n\n\n<p>To circumvent this, we developed two solutions. First, the system crops and compresses the ID photograph to the minimum quality that still allows for the extraction of necessary data. Second, <strong>the facial recognition algorithm identifies a&nbsp;set of unique markers, and then turns the face into numerical code<\/strong>.<\/p>\n\n\n\n<p><strong>As a&nbsp;result, data packets needed for transmission of face data went from the megabyte-range a&nbsp;mere 500 bytes<\/strong>. That not only makes the whole process manageable, it also makes it fast&nbsp;\u2013<strong> and available pretty much anywhere, reaching significantly more customers<\/strong>.<\/p>\n\n\n\n<h4 class=\"has-text-color\" style=\"color:#85b7e2\">Solution #4: Overhauled processes help with onboarding<\/h4>\n\n\n\n<p>Even with the fastest processing of all necessary data, onboarding a&nbsp;new client will still take about five minutes, from identification and verification to signing the necessary documents at points of sale.<\/p>\n\n\n\n<p>To get clients through this as fast as possible, the Innovatrics team improved on the POS processes to make efficient use of all the waiting time. <strong>Verification runs in the background while the clerk manages other necessary steps, and by the time all paperwork is finished, the verification is done<\/strong>. As a&nbsp;result, the customer is no longer required to wait for approval at all.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns top0 bottom0\">\n<div class=\"wp-block-column margin\" style=\"flex-basis:33.33%\">\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h6>Further Reading on Facial Recognition<\/h6>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" src=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/7qUkKrFQ.jpeg\" alt=\"\" class=\"wp-image-2449\" width=\"83\" height=\"125\" srcset=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/7qUkKrFQ.jpeg 333w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/7qUkKrFQ-200x300.jpeg 200w\" sizes=\"(max-width: 83px) 100vw, 83px\" \/><\/figure>\n\n\n\n<p class=\"has-small-font-size\">Facial recognition has had immense influence on both society and business in recent years. Learn more about how the technology\u2019s&nbsp;fast development has changed the business landscape, as well as human behaviour in Kai-Fu Lee\u2019s&nbsp;wonderful book <a href=\"https:\/\/www.amazon.com\/AI-Superpowers-China-Silicon-Valley\/dp\/132854639X\" target=\"_blank\" rel=\"noreferrer noopener\">AI Superpowers<\/a>.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\">\n<h4 class=\"has-text-color\" style=\"color:#85b7e2\">Solution #5: Eliminating human error improves customer services<\/h4>\n\n\n\n<figure class=\"wp-block-image size-full width640\"><img loading=\"lazy\" width=\"1952\" height=\"994\" src=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infographics-1.png\" alt=\"\" class=\"wp-image-2473\" srcset=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infographics-1.png 1952w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infographics-1-300x153.png 300w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infographics-1-1024x521.png 1024w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infographics-1-1536x782.png 1536w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infographics-1-300x153@2x.png 600w\" sizes=\"(max-width: 1952px) 100vw, 1952px\" \/><\/figure>\n\n\n\n<p>Employing biometric verification means in most cases there\u2019s&nbsp;no actual check or decision being made by human staff. As a&nbsp;result, people can focus on customer service and data recording, while the algorithm handles verification&nbsp;\u2013 significantly reducing workload, and improving accuracy.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>\u201cThe algorithm is a&nbsp;lot more accurate in its decisions than humans are, and leaves an impeccable trail of what it evaluated, and how.\u201d<\/p><p><\/p><cite>\u2013 Donal Greene, Innovatrics<\/cite><\/blockquote>\n\n\n\n<h4 class=\"has-text-color\" style=\"color:#85b7e2\">Solution #6: The only limit to scaling is the number of smartphones among the people<\/h4>\n\n\n\n<p>Ultimately, adopting biometrics means Home Credit can onboard every single customer who owns a&nbsp;smartphone and passes verification. The whole thing happens inside a&nbsp;smartphone app, which opens a&nbsp;great many new opportunities, both for the business and the users themselves.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns bottom0\">\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"><\/div>\n\n\n\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\">\n<h2>How biometric solutions could help your business<\/h2>\n\n\n\n<p><strong>The choice of whether or not to implement a&nbsp;solid biometric solution can<\/strong>, as in the case of Home Credit Philippines, <strong>make or break a&nbsp;successful expansion to a&nbsp;new market or segment, and\/or significantly influence long-term business prospects<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full width640\"><img loading=\"lazy\" width=\"3708\" height=\"3612\" src=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infographics2-1.png\" alt=\"\" class=\"wp-image-2512\" srcset=\"https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infographics2-1.png 3708w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infographics2-1-300x292.png 300w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infographics2-1-1024x997.png 1024w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infographics2-1-1536x1496.png 1536w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infographics2-1-2048x1995.png 2048w, https:\/\/innovatrics.com\/trustreport\/wp-content\/uploads\/2021\/10\/infographics2-1-300x292@2x.png 600w\" sizes=\"(max-width: 3708px) 100vw, 3708px\" \/><\/figure>\n\n\n\n<p>Thanks to wide applicability and modularity, <strong>biometric frameworks can help grow businesses, improve efficiency and increase profit<\/strong> across a&nbsp;wide spectrum of industries.<\/p>\n\n\n\n<p>More than that, biometrics may very well become the difference between those who survive, and those who get left behind. <strong>The following are some of the indications that biometric solutions could be helpful in driving your business further<\/strong>.<\/p>\n\n\n\n<h3>Fraud prevention is critical<\/h3>\n\n\n\n<p>If the health and security of your business heavily depends on preventing fraud&nbsp;\u2013 as is often the case with financial service providers&nbsp;\u2013 a&nbsp;centralised database using biometric data for customer verification can be utilised as a&nbsp;fast and secure solution that is easy to implement and maintain.<\/p>\n\n\n\n<h3>Customer verification is slow<\/h3>\n\n\n\n<p>Any time you need to verify your customer\u2019s&nbsp;identity, it takes time, employs lots of staff, requires complex processes and generates a&nbsp;lot of paperwork. Whether it\u2019s&nbsp;onboarding of new customers or verifying existing ones, biometrics is a&nbsp;powerful tool in cutting down on duration, costs and complexity of customer verification, improving speed as well as reliability.<\/p>\n\n\n\n<h3>Your employees work remotely<\/h3>\n\n\n\n<p>Depending on the industry, you might need to frequently check and verify authorisations, data access and credentials. Similarly to customer verification, biometrics can help speed up the process, while adding an extra layer of security and cutting costs at the same time.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns top0\">\n<div class=\"wp-block-column margin\" style=\"flex-basis:33.33%\">\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h6>Biometrics are in use in a&nbsp;variety of fields already. Some examples:<\/h6>\n\n\n\n<p class=\"has-small-font-size\"><strong>Governments<\/strong><br>Biometrics reliably identify government employees and voters during elections.<\/p>\n\n\n\n<p class=\"has-small-font-size\"><strong>Research laboratories<br><\/strong>Biometric identification protects secure premises and data.<\/p>\n\n\n\n<p class=\"has-small-font-size\"><strong>Banks and financial services<\/strong><br>Fast and reliable customer identification and verification provides better service, prevents fraud and onboards customers faster.<\/p>\n\n\n\n<p class=\"has-small-font-size\"><strong>Law enforcement<\/strong><br>Numerous ways of ensuring reliable identification help during investigations and court proceedings.<\/p>\n\n\n\n<p class=\"has-small-font-size\"><strong>Airports<\/strong><br>Biometric identification increases overall airport security, and improves speed and ease of access.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\">\n<h3>High security requirements in your industry<\/h3>\n\n\n\n<p>If you handle lots of sensitive data and the potential risks of security breach are severe, top-notch security is a&nbsp;priority. From research laboratories and airports to casinos and government offices, biometric credentials can rapidly increase security and make its breach next to impossible.<\/p>\n\n\n\n<h3>Human error is costly in your industry<\/h3>\n\n\n\n<p>If your business security and profitability heavily depend on error-prevention, human factor can put it at risk, requiring you to work hard on preventing it. In such cases, biometrics can take human error out of the equation, significantly improving security and stability.<\/p>\n\n\n\n<h3>Staffing costs are too high<\/h3>\n\n\n\n<p>Due to complicated processes spanning across different teams, you may be employing more people than necessary, negatively impacting your profit and efficiency. Verification, onboarding or security clearances are good examples of where biometric solutions might automate processes, cutting down staff requirements to a&nbsp;minimum.<\/p>\n<\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p class=\"has-text-color has-small-font-size\" style=\"color:#7c878e\"><strong>AUTHOR:<\/strong> Oliver Meres, Tom\u00e1\u0161 Be\u0148adik<br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn how implementing automated identification and onboarding put Home Credit in the leading position of a very specific market.<\/p>\n","protected":false},"author":6,"featured_media":2505,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[45,40,48],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v15.6.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to grow a business through digital customer onboarding you can trust - Innovatrics<\/title>\n<meta name=\"description\" content=\"Risk management is crucial in finance. 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