Digital Onboarding in Banking

Today, people are living their lives influenced by technologies. Significantly, the COVID-19 pandemic has pushed the global economy, especially banking and finance, to take its onboarding system to the next level. As the manual onboarding process becomes more and more outdated, banking companies are leveraging digital onboarding to execute fast, convenient, and efficient services.

With the ever-changing market trends, companies realize the importance of capitalizing on cutting-edge technologies. Most are investing in Artificial Intelligence, digital identities, biometric authentication, data collaboration, and Strong Customer Authentication (SCA). The onboarding process does not end with the initial contact with new customers; it continues as existing customers experiment with new features or beta test new releases. 

Digital onboarding entails delivering a consistent digital experience to clients, allowing them to use enhanced onboarding services. It boosts your revenue, improves customer satisfaction, and helps you attain your banking objectives. However, banks and other financial institutions face challenges in executing seamless digital onboarding. Cyber threats including malware, phishing, insecure third-party services, and spoofing can still be prevalent, leading to data breaches and fraud. Thus, bank institutions must use more sophisticated security measures like FIDO2 biometric authentication to verify their customers’ identities, preventing fraud and other cybersecurity risks. 

Despite the robust digital onboarding process, a significant concern confronting the industry is the high incidence of customer abandonment. These situations are primarily the result of poorly designed digital onboarding processes that are too complicated or too time-consuming to get done.

Traditional onboarding processes, which typically take roughly three weeks, can now be completed in three minutes or less using digital onboarding. Time savings are significant for both staff and consumers, eliminating bureaucracy and preventing potential customer losses during the final stages of client acquisition operations. These components have contributed to these businesses’ ability to lower operational expenses and improve sales volume.

To learn more about the digital onboarding process, read this infographic from LoginID