AI Implementation to Streamline Identity Verification in Banking, Says Juniper Research

A recent report by Juniper Research suggests that the adoption of Artificial Intelligence (AI) in identity verification processes will significantly reduce the average time spent on digital onboarding checks by banks. The report predicts that the average time per verification will drop by 30%, from over 11 minutes in 2023 to under 8 minutes in 2028.

Key Findings:

1. Global Impact: The implementation of AI in identity verification is expected to impact banks worldwide. The anticipated growth will be driven by banks in developing regions, where increasing smartphone penetration is observed.
2. Efficiency Improvement: As AI accuracy improves, the need for human agent reviews and retaking ID photos diminishes. This results in faster identity verification processes and reduced associated costs.
3. Protection Against Threats: AI is expected to play a crucial role in safeguarding against emerging threats, such as synthetic identity fraud, contributing to enhanced security measures in the digital onboarding process.
4. Digital Adoption: The report anticipates continued growth in digital verification within banking, particularly through mobile banking. This trend is expected to drive revenue growth in digital onboarding.
5. Total Spending Forecast: Despite the increased efficiency and reduced costs per verification, the growing volume of checks, especially in developing regions, is expected to lead to a total spending increase. The report forecasts total spending by banks to rise from $7.4 billion in 2023 to $9.9 billion in 2028, representing a 34% increase.
6. Opportunities in Developing Markets: The research highlights the strong growth potential in developing markets, emphasizing the importance of verification vendors developing onboarding processes that focus on checks beyond credit scores, such as mobile operator history.

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AI Adoption in Nigerian Banks:

The report sheds light on the current landscape in Nigerian banks, where AI is actively utilized for machine learning algorithms, customer behavior analysis, demographics, and personalized experiences. Various banks in Nigeria have incorporated chatbots, powered by AI, for customer service and transactions, showcasing a competitive edge in adopting innovative technologies.

Overall, the report underlines the transformative impact of AI on streamlining identity verification processes in the banking sector, with a focus on efficiency, security, and the evolving landscape of digital onboarding.