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Pacing the Shift to Digital Customer Onboarding.

Shifting to Digital Onboarding

What is customer onboarding? It is the process that a prospective client goes through to turn into a company or brand’s loyal customer.

Banks are always looking for ways to attract new customers and maintain their existing clientele. Many tactics can be used to improve the communication process and streamline a bank's offering.

However, the most important thing clients consider when picking a bank is the customer experience. When a bank does not satisfy them, despite the attractive offers, a customer will leave for a better option.

Onboarding in banks mainly focuses on the first interaction between the bank and the customers, either registering a new account or applying for a loan. However, onboarding is also applicable when introducing new products and services to existing customers.

Digital onboarding, therefore, is simply the process of making these activities seamless and comfortable for both new and existing customers.

The Advantages of Digital Onboarding

1. Streamlines Account Opening

Before the advent of technologythe banking industry relied on manual processes to conduct their activities. Opening a new account involved filling in numerous forms.

Not only was this cumbersome and expensive, but it also increased pen and paper, and the probability of making errors, since the prospective customer has to fill in several forms, and tick numerous boxes.

In the process, there were many typos and mistakes, which would require the customer to restart the process.

This repetition is frustrating, which meant that many individuals would avoid bank accounts unless they were necessary.

When the registration process is digital, customer service is better. Customer certification via computer or mobile phone ensures that all information entered is accurate, which speeds up the account setup process.

It also cuts down on unnecessary paper expenses. Plus, a shorter waiting times also means a bank gets more customers since the process is more efficient.

2.  Easier Customer Identification.

With digital onboarding, a customer's data is much easier to access.  Additionally, having a customer's data at your disposal means that you can make adjustments to offer them the services they need.

Having a digital copy ofconsumer data makes client identification much easierreducing the cases of fraud or identity theft. All your customers get a unique access code or pin that defines them, which improves the security of their data.

3. Improved Customer Service.

Digital onboarding improves overall customer experience since a customer will have access to all the bank's products and services at the palm of their hands.

New technologies allows the customer to get what they need without much hassle, which improves the overall attitude towards the bank.
The easy access to the bank's services also means that the customer is saved from long queues and days of waiting.

4. Remote access

Unlike previously where you needed to physically visit the bank forany service, nowadays, you can do your banking from the comfort of your house, or on the go.

Digital onboarding gives customers easy access to banking services; you can deposit or withdraw money from your account online, or even pay for your goods or services directly from your mobile device.

Mobile applications allow customers to access the bank without having to visit the building physically. They even incorporate live chat functions and a questions& answer segment to ensure that the customers are happy with the services they receive.

5. Efficiency

The most significant advantage of digital onboarding is its efficiency. When customers transact or complete their business online, they save a lot of time that would have unless been wasted in bank halls.

Digitizing banking, therefore, helps customers save a lot of time, which is then useful for more productive activities like making money.

This benefits both the customers and the banks since the bank can then use the time saved to improve customer service or to introduce new and better products to customers.

The adoption of digital banking also helps eliminate the errors that were commonplace during manual transactions. Digital banking is accurate and precise. It ensures the customer receives the exact service they requested, as soon as possible.

The efficiency of digital banking also enhances the collaboration and growth of other related industries. For example, one can pay bills quickly through a phone application via the bank.

You can also transfer money from your account to another through your computer or mobile phone, without going to a bank physically.

Since there is electronic verification infused in the application or website, you can easily carry out banking activities without worrying about your data security.

Data Security is a Sticking Point

Like in all online or digital services, security is a bone of contention. With digital onboarding, there is a lot of customer data stored by the bank, usually in a central server, which makes that data susceptible to unauthorized access.

A bank should, therefore, set up adequate security measures to ensure that customer data is safe while offering easy access to the online services.

Use encrypting software to ensure that sensitive customer data is inaccessible to anystranger. Askclients to enter a password or verify a transaction to ensure that their accounts are safe.

Also, keep client data offsite. Do not store data in an insecure server; instead, save the data in the cloud or have it stored at another location.

Constant monitoring is also necessary to ensure that customers can access all the bank's services even if one of the servers is down.


So, is digital customer onboarding a feasible idea? Yes, it is. Digital onboarding has proven to be beneficial to both the customers and the bank itself.

With improved customer service, the bank gets satisfied customers, and a chance to attract new customers. The practice, therefore, improves the productivity of a bank and the banking industry in general.

Digital onboarding also attracts younger customers who would prefer to have banking services online than going to physical banks. The growing young tech-savvy clientbase will ensure the survival of banks over the years.

In the future, technology will be a staple of life. Tech will dominate everything, and there’s nothing we can do about it. Everything will be interconnected and businesses or organizations that will not have adopted the latest trends will be left lagging.

It is, therefore, a well-liked idea that banks and the banking industry come up to date with the latest in tech to ensure they remain relevant.

Contributor: admin
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