In a recent study conducted by Juniper Research, it has been revealed that the integration of Artificial Intelligence (AI) into identity verification processes is poised to significantly reduce the average time spent on digital onboarding checks by banks. The report projects a substantial drop from over 11 minutes in 2023 to under 8 minutes in 2028, reflecting a noteworthy 30% decrease.
This transformative shift is expected to have a global impact, with particular emphasis on developing regions where the proliferation of smartphones is on the rise. Juniper Research emphasizes that the accuracy of AI is a key driver in diminishing the number of identity checks that necessitate human review, ultimately streamlining the onboarding process.
Moreover, the report notes a reduction in the instances where ID photos need to be retaken, contributing to further time and cost savings. The implementation of AI is also anticipated to play a pivotal role in fortifying the financial sector against emerging threats, such as synthetic identity fraud.
The research underscores the ongoing trend of digital adoption within the banking sector, particularly through mobile banking, as a primary driver of revenue growth in digital onboarding. Despite the efficiency gains achieved by reducing the cost per digital identity verification check, the report projects an overall increase in spending by banks. The total spending is expected to escalate from $7.4 billion in 2023 to $9.9 billion in 2028, constituting a significant 34% surge over the forecast period.
Michael Greenwood, the author of the report, provides insights into the factors fueling this growth, stating, “Growth will be particularly strong in developing markets, where rising smartphone penetration is making mobile banking more readily available; driving growth in digital onboarding. To capitalize on this, verification vendors must develop onboarding processes that emphasize checks other than credit scores, such as mobile operator history, in order to maximize viability in emerging regions.”
Shifting the focus to the Nigerian banking landscape, it is evident that many banks in the country are already harnessing the power of AI for various applications. Machine learning algorithms, customer behavior analysis, demographics, and data utilization are key areas where AI is making a significant impact, allowing banks to offer more personalized experiences for their consumers.
One notable area of competition among Nigerian banks is the integration of chatbots for customer service. Zenith Bank, Fidelity Bank plc, First City Monument Bank, UBA Group, Access Bank, Heritage Bank, and Keystone Bank have all embraced the use of chatbots to enhance customer interactions. These chatbots, such as Ziva, Ivy, Temi, Leo, Tamada, Octopus, and Oxygen, respectively, leverage AI to conduct conversations through audio or text, providing users with seamless and efficient banking experiences.
The adoption of AI in the Nigerian banking sector is indicative of a broader global trend, where financial institutions are increasingly leveraging technology to
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