The importance of customer centricity and bringing your front & back office together with your customers has never been so high. Making sure that all your processes are optimized, so that the onboarding of your client goes as smooth and frictionless as possible.
What is digital onboarding?
Digital onboarding is a fully or partially digital (online) process where a legal entity or an individual can digitally sign up with a bank or insurance company in order to start with products or services. Either end-to-end or to make it easier for bankers and insurers to finalize the onboarding of new customers with a phy-gital (physical/digital) approach.
The legal entity or individual provides their company and/or personal data, and is required to authenticate themselves. Up to, if required, a piece of biometric information such as a face scan or selfie. The digital onboarding process enables front and back offices to easily comply with regulation and to focus more on quality time with the customers. Versus previously letting time with customers being completely overwhelmed and occupied by filling in paperwork.
How it used to be?
Before digital onboarding, an individual provided their data either in-person or through the mail or letter, which was often an expensive and time-consuming process. More so for legal entities, like for example identifying the UBO’s (ultimate beneficial owner). As businesses and institutions continue to shift their operations online, the need for a secure and reliable digital onboarding solution has increased. This is all the more true as the Covid-19 pandemic continues, requiring us to minimize person-to-person contact. Due to the complexity of digitally signing up legal entities, most digital onboarding tools today only focus on individuals.
Why is Digital onboarding so important for both company as consumer?
“According to Forrester over 64% of banks reported lost revenue due to problems in their current onboarding processes. ”
For every business it is important to streamline operations both in efficiency as in costs. More so to improve and continuously deepen the relationship with their customers. When you look at the smooth and frictionless onboarding that Harmoney provides it allows a business to reduce operational costs, drive operational efficiency and also to significantly improve the customer experience. Today, customer centricity wins the race.
Instead of the endless long waiting game for a business to accept or register your personal data, financial institutions can now do the necessary checks automatically or semi-automatically with just a few clicks. According to Forrester over 64% of financial institutions reported lost revenue due to problems in their current onboarding processes.
"A recent McKinsey study shows that a decent onboarding process can boost customer satisfaction up to 25% and cut operational costs by 90%.“
Many factors in recent times have led financial institutions to face the pertinent necessity of providing digital onboarding processes to new customers, being individuals but more so for the complex onboarding processes of those legal entities. A recent McKinsey study shows that a decent onboarding process can boost customer satisfaction up to 25% and cut operational costs by 90%. A win-win for everyone. Digital onboarding for banks is becoming an expectation of new customers, as it can greatly reduce the amount of time onboarding processes take. As such, embracing platforms and digital transformation services that enable digital onboarding has become essential for financial institutions.
Leading to a wild growth of platforms and point solutions that typically do not communicate. Meaning data is scattered and not being used to empower your people with the right information at the right time (business side). As the end-to-end KYC solution, that lays on top of all your systems, Harmoney is connected to what you have already and covers the gaps of what wouldn’t be there yet with our modular approach to our software. You only pay for what you use and need, to complement what you already have. Adjacent to making everything connected.
Long-Term Benefits of digital onboarding
1. Improved customer satisfaction
2. Better customer relationship management
3. Lower operational costs
How to start?
It’s very important to have everyone on the same page. If a management changes its vision every year or choses different point-solutions every time a new problem emerges, it will be a long and expensive process. So figuring out what is needed and how this can be achieved is very important. The crucial part of the search for the right solution is finding a platform that can evolve with you and grow with you.
Harmoney is that platform. It offers you an end-to-end platform that allows you to onboard clients in an easy and frictionless way!
Want to learn more? Feel free to plan in a discovery call via our website so you can explore your unique business case with our compliance experts.