Customer-centric onboarding: A game-changer for banks and credit unions

5 min read

Enhancing client onboarding in banking to unlock sustained growth

Successful onboarding is fundamental to establishing a strong bond between banks and their customers. When executed successfully, it has the potential to generate significant returns, attract new customers, and minimize customer turnover. It catalyzes positive transformation, benefiting both the customers and the bank.

Clients demand a seamless and convenient experience in today’s fast-paced digital world. However, many traditional banks struggle to meet these expectations. Their onboarding processes are often burdensome, paper-based, and time-consuming. This is where fintech providers come in, equipped with innovative technologies revolutionizing digital onboarding and account funding.

First impressions matter: Rethinking banking customer onboarding

The onboarding process is crucial in shaping the initial impression a bank and its customers have of each other, laying the foundation for loyal and long-lasting relationships. As such, the first interaction must leave a lasting positive impact.

90% of financial institutions experience digital abandonment. 

- ebankIT, Digital Onboarding, 2023

According to research, many potential new customers abandon the onboarding process for various reasons, such as complexity, lack of access to identity documents, lengthy application time, and the extensive information required. The “Digital Onboarding Report 2023” highlights that a staggering 90% of financial institutions experience digital abandonment, resulting in substantial financial losses. This presents a major challenge for financial institutions regarding customer retention during onboarding.

In a fiercely competitive landscape, banks must prioritize delivering a flawless and user-friendly digital banking experience that encompasses everything from account initiation and financing to introducing new offerings.

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6 steps to master digital banking onboarding 

Digital onboarding presents a win-win situation for both customers and banks, providing customers with convenience while simultaneously reducing operational costs for banks. However, optimizing this process can prove to be a daunting task for banks. Fortunately, fintech providers offer invaluable solutions to overcome this challenge and unlock the full potential of digital onboarding.

1. Speed

Efficiency is key in reducing onboarding churn, as customers now expect to complete the process in minutes rather than days. Streamlining processes that provide customers with the necessary tools to complete their journey effortlessly is crucial. 

2. Streamline identity checking processes

Prompt verification is an essential aspect when customers upload their identification. However, the delays caused by manual checks are simply unacceptable. Financial institutions must prioritize implementing robust and automated KYC processes and investing in advanced identification verification technology. 

3. A secure and seamless process 

By incorporating seamless biometric authentication methods such as fingerprint or facial recognition, customers are empowered to complete the onboarding process, decreasing churn effortlessly. Moreover, integrating e-signatures expedites the overall procedure, enabling customers to sign documents conveniently, regardless of location.

4. Automation

According to research conducted by Deloitte, a staggering 38 percent of customers abandon the onboarding process due to the overwhelming amount of information required.

Embracing automation and minimizing manual data entry is paramount for financial institutions. By implementing automation, banks can eliminate the burden of manual work and enable their employees to concentrate on more complex tasks. This not only enhances efficiency but also boosts productivity within the organization.

According to the Digital Onboarding Report 2023, institutions that automate processes can reduce their costs by 50%. 

5. Human Touch

In today’s digital era, customer assistance remains crucial, especially for digital banking customers. However, providing a human touch goes beyond simply having staff available during onboarding. Humanized digital technology, such as chatbots, can effectively address clients’ needs and enhance the onboarding experience. By combining this technology with easy access to human support through chat or voice calls, financial institutions can establish a reliable system that reduces customer abandonment and fosters stronger relationships.

6. Artificial Intelligence

By leveraging the power of AI, banks and credit unions can not only reduce the risks of customer abandonment but also establish a positive relationship with their customers right from the start. As an added benefit, these technological advancements can lead to significant cost savings of between 25 and 40 percent on process costs, as per findings from Gallup.

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Building lasting relationships by unlocking efficiency

Enhancing client onboarding in banking is crucial for establishing strong customer relationships and driving business growth. Traditional banks face challenges in meeting clients’ demands, but fintech providers such as ebankIT offer innovative solutions to revolutionize the onboarding process.

Banks can unlock the full potential of digital onboarding by prioritizing speed, streamlining identity verification, ensuring a secure and seamless process, embracing automation, incorporating a human touch, and leveraging artificial intelligence.

These strategies improve efficiency, reduce costs, and create tailor-made experiences that foster loyalty and build lasting customer connections. Banks must prioritize these strategies to deliver a flawless and user-friendly digital banking experience to stay competitive in the fiercely competitive landscape. 

Read the complete guide from ebankIT by downloading the full report now.

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