In this paper, FINTRAIL and Jumio break down how and why to build a risk-based onboarding flow. Customers expect to be able to open accounts in minutes, with a seamless and intuitive onboarding experience. For firms, the onboarding process also needs to capture all of the information required to assess the risk of the customer. Some checks are required by regulations, whilst others can be deployed on a risk-based approach. The key is to get the balance right between hard-and-fast regulatory compliance and deploying enough checks to satisfy your risk appetite.
This paper looks at:
- Regulatory compliance requirements for onboarding flows
- Operational benefits of taking a risk-based approach
- The first practical steps to start building or refining an effective onboarding journey
- Three example onboarding flows for low, medium and high risk products
- An assessment of when to assess the risk associated with customers (during or after the onboarding flow)