Customer onboarding trends for financial services

June 26, 2023

In the fast-paced digital era, customer onboarding has become a critical process for banks to establish strong relationships with their clients. It is the first interaction that sets the tone for the entire banking experience. As technology continues to evolve, banks are constantly adapting to stay ahead of the competition and meet customer expectations. In this blog post, we will delve into the latest trends in customer onboarding for banks and financial services, exploring how advancements in technology, data analytics, and customer-centric approaches are transforming this vital aspect of the banking industry.

Streamlined Digital Onboarding

Traditional paperwork and manual processes are being replaced by streamlined digital onboarding solutions. According to the findings of a new client onboarding survey conducted by Forrester, more than 64% of banks reported lost deals and revenue as a result of issues in the current onboarding processes take too long and do not provide a comprehensive view of the process for the customer. Banks state that the Know Your Customer (KYC) initiatives and related processes are the main pain point for customers and banks today.

Banks are investing in user-friendly mobile applications and online platforms that allow customers to open accounts remotely with ease. Digital onboarding processes are designed to be intuitive, efficient, and secure, ensuring a frictionless experience for customers. Through electronic verification methods and integration with identity verification services, banks can authenticate customer identities swiftly, reducing the need for physical documentation. This trend not only enhances customer convenience but also saves time and costs for banks, enabling them to serve a wider customer base.

Personalization and Customer-Centricity

In this highly competitive banking world, gaining customer’s loyalty and offering them the best of personalized services and products, based on their individual needs and preferences, is the need of the hour. 70% of consumers are more likely to buy from companies that understand how they use their products/services.

To build stronger relationships with customers, banks are embracing personalization and customer-centric approaches in their onboarding processes. By leveraging data analytics and AI-powered systems, banks can gather insights about customers' preferences, financial goals, and behaviour patterns. This allows them to tailor their onboarding experiences accordingly, offering personalized product recommendations and relevant services. By understanding customers' unique needs and delivering a personalized experience, banks can foster loyalty and engagement, leading to long-term customer satisfaction and retention.

Omni-channel Integration

Financial services lead generation is evolving. Between 75% and 90% of financial services searches start online as per research by LSA Global. These leads can come from multiple sources including but not limited to website forms, apps, customer portals, marketing banners, lead forms, fintech partners, and other channels. This challenge then is to aggregate all the leads, qualify, and nurture them while providing them a unified omni-channel experience.

Banks are responding by integrating various channels into their onboarding processes. From online platforms to mobile apps and physical branches, banks are ensuring that customers can start the onboarding process on one channel and seamlessly continue on another. This trend enables customers to switch between channels at their convenience, providing a consistent experience and avoiding any disruptions. For instance, a customer could initiate the onboarding process through a mobile app and complete it by visiting a nearby branch. By offering an omnichannel approach, banks can cater to diverse customer preferences and deliver a unified onboarding experience.

Enhanced Security Measures

As the digital landscape expands, ensuring the security of customer data and transactions is paramount. Banks are adopting advanced security measures to safeguard customer information throughout the onboarding process. This includes implementing robust encryption protocols, multi-factor authentication, and biometric verification methods. By assuring customers of their data protection, banks build trust and confidence, encouraging more customers to embrace digital onboarding. Additionally, compliance with regulatory frameworks, such as KYC (Know Your Customer) and AML (Anti-Money Laundering), is prioritized to prevent fraudulent activities and ensure compliance with legal requirements.

In conclusion, the latest trends in customer onboarding for banks reflect the industry's commitment to innovation and customer satisfaction. Streamlined digital onboarding processes, coupled with personalization, omnichannel integration, and enhanced security measures, are transforming the way banks engage with their customers. By leveraging technology, data analytics, and customer-centric approaches, banks can create seamless onboarding experiences that build trust, loyalty, and long-term relationships. As the banking industry continues to evolve, these trends will shape the future of customer onboarding, leading to improved efficiency, customer-centricity, and a competitive edge for banks in the digital age.

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