Customer onboarding and origination in
a digital world

The reasons why banks lag behind with digitized onboarding and origination, how they can overcome these challenges, and the opportunities that come with this seemingly impossible task.

Manual, paper-based onboarding processes are not only outdated, they are costly. In fact, 20 times more so than computer-assisted, electronic document processing. Costs aside, the customer base has gone digital – a development many banks are still catching up with. As uniform, agile customer experiences are the order of the day, banks face pressure to go beyond minimum requirements and take the next step with digital. As part of this, they must embrace a host of new technologies in order to transform customer engagement.

 

Illustration Customer Journey - Customer onboarding and origination in banking whitepaper

 

The perfect onboarding process -it’s already out there

The key to a seamless onboarding process is to put the customer at the forefront of its development and to harness the right technologies to support it. Banks that do so will reap the rewards in terms of brand perception and customer acquisition. A smart onboarding process will not only ensure a potential customer is more likely to sign up, they will feel more confident in the brand from the outset. Aside from boosting customer acquisition and retention, banks that get smart about onboarding can also cut costs – and substantially.

McKinsey has calculated that banks and credit unions can realise 40-90% cost reductions through careful deployment of workflow tools and digital onboarding capabilities for customers and staff.

In addition to removing compromises that the customer must make, onboarding done right brings a host of benefits. Aside from actually having a new customer at the end of the process, brand perception is solid from the outset, making it easier to upsell or cross-sell to them in the future. Due diligence and compliance cause far less headaches, and with the number of interactions greatly reduced, everyone saves time and money.

“The benefits of an effective onboarding programme are clear, yet banks are not there yet, and they know it. In one study, over a third of banks surveyed considered their onboarding programme to be less successful than desired.”

What must banks do to remain relevant in a rapidly changing environment? With very little time to adapt, what is the smart way to take on digital onboarding and origination? What support is available to simplify and expedite the process?

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