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Customer Onboarding in Banking

The vast majority of banks believe that by the very near future most of their sales operations will have shifted from their branches to digital channels, mostly web and mobile applications.

Onboarding or new product origination is traditionally a challenging and time consuming process. Barriers are created from the outset, which seriously impact on conversion rates and the cost of acquisition. Manual processes, visiting bank branches, awaiting approval, and passing information through a series of systems.

More often than not, there’s a complex paper trail as new customers have their identity verified. Banks must put their customers through this in order to comply with regulations such as Know Your Customer (KYC). The rules are strict and usually require documents to be signed in person or sent via snail mail.

The information banks require to undertake due diligence and assess risk profiles comes from third parties. This means they have to request data, wait for it, and then analyze it, which essentially derails the onboarding process as new customers must wait before taking the next step. Such lead time reduces the probability that they will stay with the bank until the end of the process.

An integrated approach is vital. Digital onboarding is so much more than just bringing nice interfaces to the end customer. It spans the entire user experience and a host of back-end systems and procedures. This is about bringing everything together to create an ecosystem that connects all the parts of the bank and optimizes the customer experience.

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