Digital Trust: Facilitating digital transformation in the banking sector

26/08/2022 Business | Written by Abdulla Al Hammadi, Chief Executive Officer of Electronic Document Centre

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The financial services sector is being transformed by digitalisation, in every aspect. Even for the banking industry, the evolving digital transformation is an important trend. Digitisation has pushed the industry to introduce innovative solutions to its customers to keep up with the technology-driven world giving them access to every service at their fingertips. People are unlikely to recall the last time they went to the bank to make a transaction or a deposit because their mobile phones can deliver the same services with a simple click. With a convenient digital banking experience, customers can now easily meet their requirements with complete trust and satisfaction, and this is what the term digital trust refers to. Banks and other such financial organisations can earn the trust of their customers only if they feel secure about their personal data privacy and information. Therefore, it is essential to employ appropriate digital solutions to maintain customer satisfaction. Building digital trust is one of the essential elements of digital transformation. The Covid-19 pandemic has prompted all organisations, including banks, to launch digital channels and go online in order to offer an even more practical solution in the burgeoning technologically competitive era. Complete digital transformation is achieved by integrating various technologies with several business activities, including business models, services offered, communication channels, and data processing, which satisfies the demands of the new reality. Online banking, which enables banks to provide their services through digital channels like mobile applications, is one of the benefits to be reaped by banks from the effects of digital transformation. Customers are always seeking convenience, and online banking is a customer-centric approach that banks may employ to satisfy their needs of customers. Online banking allows customers to bank on their own terms and the around the clock availability of services enhances bank's reliability and loyalty. Understanding your customers' demands and gaining their confidence by safeguarding all their data and developing a strong relationship with them are the key components of building digital trust. Gaining the trust of customers demonstrates an organisation's capacity to offer smooth digital procedures that can identify any suspicious behaviour, providing customers with a reliable and trustworthy platform that offers all the services they need. Digital trust solutions - including digital onboarding and digital authentication and verification - enable banks to level up the 'Know Your Customer' (KYC) procedures. This provides customers with the benefit of conducting transactions from any part of the world, with the confidence that their banks can confirm their identification and the legitimacy of their documents. Customers will be hesitant to use a bank's digital services if they realise that they are unable to preserve their financial data and protect them from fraudulent activities. Therefore, building digital trust is a challenge that all banks must overcome. Additionally, digital trust also offers banks the potential to expand their customer base and overcome the geographic barrier. Moreover, it lowers the expenses associated with onboarding while producing more effective outcomes and minimising human error, which is prevalent in traditional onboarding procedures. Recognising the importance of digital trust, Electronic Documents Centre (EDC), a semi-government company operating under Emirates Post Group, offers onboarding, identification, and authentication solutions to banks and other financial institutions, to assist them in providing a smooth digital experience. They provide a streamlined onboarding and authentication procedure by enabling our customers to scan their Emirates ID, capture the necessary data, and instantly verify them online using the Federal Authority for Identification and Citizenship (ICP) database. The solution allows customers with the advantage of swift responses and convenient options. With the right digital trust solutions, banks will be able to handle data more effectively and enhance their productivity by minimising human errors and eliminating fraudulent threats, which will benefit the bank as well as the customer to build a healthy relationship and boost customer loyalty.

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