Business leaders are gradually realizing the enormous potential of digitization, and digital customer onboarding has become the industry buzzword.
Banks and financial service providers have faced unexpected challenges as a result of the COVID-19 pandemic response in recent months. As customers go online to access critical services, the industry is rethinking the future of digital banking through rapid adaptation measures and a stronger focus on their digital presence. Business leaders are gradually realizing the enormous potential of digitization, and digital customer onboarding has become the industry buzzword. In fact, the search term “digital onboarding” reached an all-time high in the context of financial services.
Fragmented customer journeys are suffering
Organizations are now noticing a plethora of challenges that underpin traditional new client onboarding processes, as well as their shortcomings in future market conditions. Changing policies are also heralding a change in the BFSI landscape. According to a recent statement by the Reserve Bank’s Chief General Manager, “the Reserve Bank has decided to permit Video-based Customer Identification Process (V-CIP) as a consent-based alternate method of establishing the customer’s identity.” In the age of neobanks and disruptive technologies like AI, the BFSI sector is realizing the value of operating not just normally, but better, despite current challenges.
The reaction to COVID-19 has exacerbated two major categories of flaws in traditional onboarding. The first set is about the customer experience. Traditional processes are typically slow, repetitive, and complex. Low delivery speed can result in up to 40% abandonment rate in mobile onboarding, and nearly 7 out of 10 millennials expect a seamless integrated experience for services across all channels. As a result, smooth omnichannel customer journeys are becoming the norm rather than a differentiator. The second set of flaws affects the organization’s internal workflow in the following ways. Typical onboarding:
Processes take longer because multiple stakeholders are involved.
Causes decreased field time for sales teams, lower employee engagement, and a large portion of the workforce performs several repetitive tasks.
In today’s constrained business environment, can stymie service delivery and expansion efforts.
