Banks cut onboarding time by 32% with digital identity

A new research report has revealed significant gains for banks leveraging Corporate Digital Identity (CDI), with substantial reductions in onboarding processing time and enhancements in compliance accuracy.

The report, released by Encompass Corporation and Chartis Research, finds that banks using CDI achieve a 32% reduction in end-to-end onboarding processing time. The study highlights the role of CDI in streamlining onboarding processes, improving compliance, and promoting sustainability within corporate banking.

The research addresses some of the key challenges banks face, such as stringent regulatory requirements and complex client data management. The findings demonstrate that CDI offers a solution, reducing a typical 90-120 day onboarding process to a more efficient timeline. Also noted in the report is a 28% reduction in manual data errors and a 25% increase in compliance accuracy facilitated by CDI.

"This research makes clear that CDI is much more than a process improvement - it's a critical tool for corporate banks to remain compliant, efficient, and competitive," said Alex Ford, Chief Revenue Officer of Encompass Corporation. "Banks today are under unprecedented pressure to optimise their client onboarding processes while upholding strict regulatory standards. CDI enables them to achieve both, setting them up for long-term operational success."

Nick Vitchev, Research Director of Chartis Research, remarked, "The most surprising - and highly rewarding - finding from this research is that the commercial benefits of streamlining corporate onboarding often exceed the expected efficiency gains. This is a powerful message for financial crime and compliance teams, which have successfully shifted from being seen as 'cost centres' to delivering measurable value and supporting strategic business growth."

The research, conducted with insights from senior leaders and industry experts across North America, Europe, and Asia-Pacific, provides a comprehensive view of corporate client onboarding processes. Participants identified compliance burdens, fragmented data management, and operational inefficiencies as primary challenges.

Integrating CDI allows banks to address these issues effectively, cutting onboarding costs by nearly 20% and reducing the time spent on repetitive compliance tasks by 40%. Moreover, adopting CDI leads to a 28% reduction in manual data errors compared to traditional data management, thus minimising costly mistakes and onboarding delays.

CDI also improves the accuracy of compliance checks by an average of 25% over conventional onboarding systems, which often depend on fragmented data sources. This enhanced accuracy accelerates compliance workflows and reduces regulatory risks, resulting in a more dependable onboarding experience for corporate clients while maintaining rigorous industry standards.