Previously, based on the success of the Roshan Digital Account framework, the State Bank of Pakistan (SBP) devised a comprehensive ‘Customers Digital Onboarding Framework’ which facilitates banks and Microfinance Banks (MFBs) to conveniently and remotely open bank accounts of resident Pakistanis by using digital channels including websites/portal, mobile applications, digital kiosks, etc.
Banks Are Gathering Unnecessary Details from Customers
However, during the rapid rise in the online banking and financial services, the central bank of Pakistan has observed with serious concern that many of the banks/MFBs are gathering unneeded details and documents from clients, particularly for the opening of ADA, ADRA, or FDA, which is not only rendering undeserved delays in account opening process but also hindering the consumer’s seamless digital onboarding experience. Besides, the user’s experience through the account opening procedure of most of the banks/MFBS requires considerable improvement.
Therefore, in order to provide transparency concerning regulatory expectations in regard to digital onboarding, specifically for ADA, ADRA, and FDA, the previously launched subject framework called, ‘Customers’ Digital Onboarding Framework’ has been revised. Moreover, banks/MFBs are now required to ensure adherence with the newly issued instructions following the Customers’ Digital Onboarding Framework, and case of failure to follow these instructions may result in a necessary enforcement action(s) under applicable conditions of the law.
Customers’ Digital Onboarding Framework Requires Banks to Protect User Data
In addition to this, the newly revised Customers’ Digital Onboarding Framework of SBP suggests that all banks/MFBs shall also be mandated to take measures to construct preventive, detective, and correctional technical security measures for their digital portals/apps to guarantee confidentiality and privacy of client data including.