Banks leveraging Corporate Digital Identity achieve a 32 per cent reduction in end-to-end onboarding processing time, according to new research commissioned by KYC automation company Encompass Corporation, and conducted by financial research firm Chartis Research.
The Encompass Corporation research surveyed senior professional and industry experts from corporate banking and fintech sectors across North America, Europe, and Asia-Pacific, and found that Corporate Digital Identity (CDI) helps address compliance burdens, fragmented data management, and operational inefficiencies – which emerged as top pain points.
CDI combines real-time public and private information to identify and verify a company’s identity. This technology-led approach boasts a number of advantages including streamlining onboarding processes, improving compliance, and providing a sustainable framework for future banking operations.
By integrating CDI, banks can address major issues for banks while cutting onboarding costs by nearly 20 per cent and reducing time spent on repetitive compliance tasks by 40 per cent.
The findings also highlight that CDI reduces manual data errors by 28 per cent compared to traditional data management methods, helping banks minimise costly mistakes and prevent delays in the onboarding processes. Additionally, CDI improved accuracy across compliance checks by an average of 25 per cent over conventional onboarding systems, which often rely on fragmented data sources.
“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.”
Corporate Digital Identity offers commercial benefits
These findings highlight how CDI offers a solution to for many current hurdles for banks, including stringent regulatory requirements to complex client data management.
In a process that typically takes 90 to 120 days, the adoption of CDI delivers faster, more accurate onboarding. Alongside this reduction time, the research highlights other significant benefits including a 28 per cent decrease in manual data errors and a 25 per cent improvement in compliance accuracy.
Nick Vitchev, research director of Chartis Research, also said: “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.”
This enhanced accuracy not only accelerates compliance workflows but also reduces regulatory risk, leading to a faster, more reliable onboarding experience for corporate clients while ensuring stringent adherence to industry standards.
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