Luminor Bank has expanded the scope of its onboarding partnership with Ondato. The two organizations first joined forces in May of 2020 to allow customers to sign up for new Luminor accounts remotely.
Now Luminor and Ondato are trying to extend that same utility to local businesses. In that regard, businesses registered in Latvia will now be able to open a corporate Luminor account without ever stepping foot inside a physical branch location.
The new service leverages Ondato’s verification technology. The company will cross-reference all customer data with the information in various databases to make sure that it is legitimate, and then back that information up with a biometric identity verification check. In that regard, business owners interested in opening a Luminor account will need to authenticate themselves with either a Smart-ID Qualified or an eID electronic signature.
Luminor will follow up with a video call to confirm the identity of each signatory. However, those who already have a Luminor account will be able to skip that video call and will enjoy a streamlined account opening process. Either way, a Luminor representative will reach out to help come up with a service package tailored to the needs of each particular business.
According to Luminor, Ondato will help the company meet the growing demand for digital services in the wake of COVID-19. As it stands, 34 percent of small and medium-sized enterprises are looking to expand within the next year, and 13 percent believe that they may need to open a new account to support that growth.
“Small and medium-sized enterprises are the most frequent openers of new accounts, accounting for almost 85 percent of all Luminor current accounts opened for legal entities,” said Luminor Baltics Business Development Manager Jekaterina Ziniča. “Switching to remote account opening is an obvious modern digital solution that will create additional convenience and save time for our clients.”
“Digitization is one of the main steps a financial institution can take to make itself more competitive and convenient for its clients,” added Ondato Co-founder and CEO Liudas Kanapienis. “While Know Your Business procedures are often regarded as something forced on businesses due to regulations, this can also be an opportunity to make your day-to-day processes more effective.”