Digital Customer Onboarding: A Revolution for Banks and Financial Services

A leading bank in the USA with a presence in 60 countries, decided to revive its digital account opening process for customers. Overloaded with different product lines- CASA, loans, term deposits, etc., the bank failed to deliver digital customer onboarding experience. Thus, opening a new account in the bank was still an extensive process and included a traditional paper-based model where the customer was required to fill in multiple forms. These forms were usually lengthy and were the basic requirement for onboarding customers.

The onboarding process became a costly affair for the bank with the extensive involvement of the back office and the continuous interactions with the customers. The bank started facing other issues like:

  • More customers dropping out of the onboarding process
  • Increased Customer frustration with paper or the volume of information required
  • Lack of a holistic onboarding platform that delivers unique onboarding experience
  • Customer feedback mechanism to drive continual improvements was not in place
  • Lack of smart insight to analyze customer onboarding processes
  • Increase in onboarding time led to more customer frustration
  • Employee satisfaction and employee productivity got hampered

Customers today want digital experiences that are superlative, sophisticated and flexible to meet their daily needs.

What could have the bank done to optimize their customer onboarding experience?

When evaluating the above onboarding experience, the bank should understand the reason behind setting up the onboarding journey. It can either be for ease of business or for the delight of the customer. A well-made customer onboarding process understands the customers & their journeys’ to deliver a truly magnificent onboarding experience.

As every customer’s onboarding journey is different with different experiences being delivered, customers might face frictions in terms of process delays, re-verification, tedious forms, etc. An onboarding experience represents the first interaction that a customer has with a bank and it’s the only chance for the bank to build long-term loyalty. Thus, the above bank should have enhanced and enriched its customer onboarding process while moving from the traditional paper-based process to a seamless omni-channel process.

Here are 3 Factors important for creating a successful Digital Customer Onboarding Process:

1. Omni-channel Customer Experience: Providing customers the option to switch on different channels can improve the adoption of a digital strategy and at the same time makes the onboarding process more convenient. It also means providing customers with an omni-channel strategy that gives them the option to start from one channel and seamlessly migrate to another. In order to deliver omni-channel onboarding experience to customers, banks must make a move from the traditional paper-based and inconvenient onboarding process to a seamless omni-channel customer experience journey.

2. Exemplary Business Architecture: Banks need to reconsider their overall business architecture since it is one of the most important factors when onboarding the customer. The kind of process that a bank has while onboarding a new customer, will represent the future relationship that the bank will have with the customer. Since onboarding encompasses of various processes like documentation, data collection, KYC, verification, etc., it becomes quite necessary for the banks to establish a bond that is long-lasting and results in higher profit margins. Few of the essential technologies and integrations required at the time of onboarding are:

  • Optical character recognition that verifies the customer identity by extracting text-based data from documents.
  • Facial recognition or an anti-impersonation solution that recognizes the person applying for an account by matching the description provided on the documents.
  • The KYC “Know Your Customer” background verification to access the potential threat by a customer.
  • An electronic signature device to ensure that the documents are duly signed.
  • Real-time onboarding status available for the customers to track their onboarding journey.
  • CCM Software to ensure seamless onboarding of customers by proactively engaging with them and sharing timely and relevant communications on the channel of their preference.

3. Regulatory Compliance: When talking about Digitization of the onboarding process, banks consider IT to be the most complex part. But, it’s not the case as regulations and compliance are more complex than IT processes requiring thorough scrutinization before the launch of the new digital onboarding process. As digital onboarding is a relatively new process, hence the regulations are not specifically detailed out about the complete process. Thus, these challenges have to be considered at the beginning of the digital onboarding process and consolidated in the plan.

Some of the Benefits of Digital Customer Onboarding are:

  • Consistent and intuitive onboarding processes
  • Auto-fetched and pre-filled customer details in forms
  • Reduced KYC due diligence time
  • Higher customer satisfaction with improved turnaround times
  • Digital processes and interactive strategies
  • An increase in customer digital usage, adoption, and loyalty

We at FCI enable banks to provide their customers with a superfast onboarding experience that is sophisticated and flexible, which can ultimately help them in building long-term loyalty. Request a demo now – https://fci-ccm.com/request-a-demo-banking.php

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