How AI Is Revolutionizing Onboarding: Enhancing Security, Speed, and Trust

In today’s digital-first world, onboarding is no longer just a formality—it’s a decisive moment that reflects a company’s values, priorities, and operational agility, as stated in Fintech Global. For both customers and vendors, the expectation is clear: onboarding must be seamless, secure, and fast. But delivering that experience requires more than just good intentions—it demands advanced technologies and rigorous safeguards.

According to LSEG (London Stock Exchange Group), a global leader in financial infrastructure and data services, onboarding has evolved into a strategic process that can improve customer satisfaction, reduce costs, and mitigate operational risks.

One of the most pressing concerns? Fraud. In 2023 alone, global payment fraud cost merchants an astonishing $48 billion, and that number is only expected to rise. Businesses face growing threats from synthetic identities, account takeovers, and Business Email Compromise (BEC). These evolving risks make secure onboarding not just beneficial—but essential.

To address these threats, companies are increasingly turning to advanced digital tools. Real-time bank account verification, multi-factor authentication, and behavioural analytics now play a central role in streamlining onboarding while safeguarding operations. These tools allow businesses to quickly verify identities, flag irregularities, and reduce unnecessary delays.

LSEG highlights the growing role of Know Your Customer (KYC) and Know Your Business (KYB) protocols, stating that “strong KYC and KYB practices—enhanced by behavioural insights—build trust from the outset.”

Artificial intelligence (AI) and machine learning (ML) are taking these efforts a step further. By processing large datasets in real time, AI can detect fraudulent patterns, automate verification tasks, and minimize human error. “Artificial intelligence and machine learning are transforming onboarding,” notes LSEG. “These technologies detect fraud faster and automate key verification steps.”

LSEG Risk Intelligence supports global organizations by offering onboarding solutions that are not only secure and compliant but also efficient. Their tools have helped businesses reduce onboarding abandonment, cut costs, and enhance both customer and vendor experiences.

Looking ahead, onboarding is expected to become even more intelligent and responsive. With AI accelerating data analysis and improving decision-making, businesses will be better equipped to meet rising expectations—without sacrificing security or regulatory compliance. “Onboarding will only become more intelligent. With AI enabling faster data review and insight sharing, businesses can meet rising expectations while maintaining security and compliance,” concludes LSEG.