- With CIBC’s new digital identity verification feature, prospects don’t need to visit a branch to open a new account.
The Canada-based bank introduced a new digital option for prospective customers who are applying for one of its accounts and need to verify their identity. Eligible products include a checking account, savings account, personal line of credit, or credit card.
Potential customers can access the digital identity verification feature via the CIBC mobile app or website. To complete the application, they must provide an image of a government-issued ID, as well as a selfie. Machine-learning algorithms in the feature verify the images.
The offering eliminates the need to visit a branch. The bank states that the entire process can be completed in minutes.
CIBC is following the lead of Scotiabank, which provides prospective customers with a similar digital ID verification process. Both banks are capitalizing on the trend of more customers opening their accounts digitally in Canada.
According to a May 2021 eMarketer forecast, digital account openings were expected to increase 23.7% and 17.4% in 2020 and 2021, respectively, before tapering off to a more moderate pace through 2024.
If CIBC’s peers adopt similar digital ID features, it could further entrench them in the Canadian market in the face of an influx of foreign and domestic digital challengers.
Innovations like CIBC’s digital ID verification solution help alleviate the procedural impediments typically associated with legacy banks. Adoption of a similar offering by all of the other top seven Candian banks could further widen this divide.
Want to read more stories like this one? Here’s how you can gain access:
- Join other Insider Intelligence clients who receive Banking forecasts, briefings, charts, and research reports to their inboxes each day. >> Become a Client
- Explore related topics more in depth. >> Browse Our Coverage
Current subscribers can access the entire Insider Intelligence content archive here.