A new study by Juniper Research foresees that the use of AI could save banks $900m in operational costs by 2028.
On top of the significant savings, it promises to save 29m hours in the digital onboarding process.
The implementation of AI in identity verification will whittle down the average time spent per digital onboarding check from more than 11 minutes in 2023 to under eight minutes by 2028.
As AI becomes more accurate, the need for a human to review identity checks will dwindle, as will the need for ID photos to be retaken.
This increased efficiency will expediate verification processes and slash associated costs.
Moreover, the use of AI will play a role in protecting against emerging threats, such as identity fraud.
The research posits that the widespread adoption of digital verification within banking, particularly mobile banking, will continue to drive revenue growth in digital onboarding.
Despite the increase in efficiency reducing the cost of each digital identity check, the growing volume of checks, particularly in developing regions, will offset this.
Michael Greenwood, the report author, explained: “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 capitalise on this, verification vendors must develop onboarding processes that emphasise checks other than credit scores, such as mobile operator history, in order to maximise viability in emerging regions.”
Image: Juniper Research