Onboarding customers in a digital-first world

Our quick guide on how to overcome challenges when customer onboarding

2 Mins

We are now living in a truly digital era. This is something that we have been moving towards ever since we discovered the true scope of the internet. However, the COVID-19 pandemic has had the effect of forcing businesses to move faster towards this digital realm. Indeed, more traditional business operations faced a lot of trouble during the pandemic. In conjunction with highly unpredictable changes, frequent lockdowns have created significant chaos when it comes to dealing with customers. It is these circumstances in which digital-first, as a concept, has gained acceptance. The future will be a virtual world with a much larger market.

Onboarding customers or clients is a pivotal part of the client acquisition process. Unfortunately, it is this phase that faces the maximum churn rate. A recent report shows that close to 40% of clients are lost while onboarding. This is due to the complex and tedious formalities and procedures during this stage. It is hard to balance the ease of acquiring customers with the full regulatory compliance that comes as part of running a business.

Challenges with onboarding customers

There have been challenges in both the traditional and modern modes of onboarding customers. They also both have to be addressed because; although the modes have undergone a shift, the players remain the same.

KYC and AML Regulations: In the Fintech world, these regulations are something businesses need to prioritise. Complying with them has become a vital part of business continuity and operation. The traditional KYC and AML regulations were dependent on manual labour.

The burden on the business: Due to the effort involved in complying with the KYC and AML regulations, a lot of manual labour was wasted, when in fact many of these tasks can be automated. This would save time and effort and enable the business to use its resources effectively.

Customer Frustration: Managing customer experience, along with compliance, can be tricky in Fintech. Many customers change their minds during the onboarding phase, something which can be easily fixed with the help of a proper, efficient onboarding process.

How can you overcome these challenges?

Automation is the one-stop-shop for most of these problems. Technologies, like robotic process automation, machine learning, and artificial intelligence and more, can all assist with onboarding.

Digital onboarding solutions such as Creditsafe, use these technologies to make onboarding a seamless experience. This will reduce the churn rate of those customers during onboarding. Even better, these solutions are capable of implementation within a short amount of time, and they can function with limited to no manual effort. The main benefit being that it saves many valuable resources.

The customers may get tired of any process which requires them to share information multiple times. Digital onboarding provides the option to have a centralised platform to verify each customer. Innovations like this can help to improve the customer experience.

Dynamicity of the operating environment demands agility in a business. Therefore, digital onboarding can help assess and continuously monitor the customers, thereby taking care of regulatory compliance.

Further, it is both scalable and cost-efficient, because there are no additional expenses involved in scaling up the business. This is because the digital tools involved in onboarding function irrespective of the current workload. Freeing up valuable resources from onboarding and putting them to better use is something the business can afford.

Using Creditsafe, you can verify a client's ID instantly with our AML searches and ID scan technology, reduce the need for physical storage with our paperless audit trial, saving you both time and money. 

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