According to statistics, 50% of new bank account applications are abandoned before completion. By utilizing workflow automation tools, banks can make the process easier and more efficient by utilizing digital customer onboarding procedures.


As the human resource officer of your organisation, how long does it take you to onboard your new employees? I bet your new employee didn't resume when you contacted him after many weeks of verifying his identity and credentials. 


This is probably because your major competitor in the industry which he applied to as well was able to verify his documents while you were busy undergoing the traditional onboarding process.


If you are still stuck with onboarding new hires manually, then you should read this article. This article covers everything you need to know about the digital customer onboarding process as a digital banking solution.


What does Customer Onboarding Mean?


Customer Onboarding is the process of ensuring that new customers or employees are well integrated into an existing system of an organization or business. 

A customer onboarding process usually has the customers complete the new-hire process before settling in as an employee or users of a product or service.


This process is otherwise known as the KYC onboarding process. It is the series of processes put in place by financial institutions to verify the identity, credibility and legitimacy of a new customer or business before conducting business with them. 


This process usually includes:

  • Identity verification
  • Address verification
  • Documentation
  • Credential verification
  • Provision of product/service demos


The process ensures that new customers can use a business’s products and services seamlessly.


Read Also: What is Customer Due Diligence?


What are the types of Customer Onboarding Processes?


These customer onboarding processes can be carried out in two major ways:


  1. Traditional or Manual onboarding
  2. Digital Onboarding


What is Digital Customer Onboarding?


What does digital onboarding mean? The process of onboarding your new customer or employees using automated means is simply known as digital onboarding. Digital onboarding software automates the customer boarding process from start to finish. 

Digital customer onboarding is a form of a digital solution for banks


How Does Digital Customer Onboarding Work?


How do you automate a customer onboarding process?


The digital customer onboarding process varies depending on the size or scale of the business. 


For smaller organizations, automating your onboarding process may simply involve recording your training program and sharing it with new employees whenever the need rises.

For institutions like banks, the KYC process is always a compliance process to reduce the risk of engaging in business with a blacklisted company or fraudulent individual. 


For businesses that offer services across multiple countries, using digital solutions for the onboarding process is also a form of compliance as they have to comply with regulations in different countries. 


Such digital onboarding processes involve conducting Know your Customer (KYC), Know your Employee (KYE), Know your Business (KYB) and Anti-Money Laundering checks. These bigger-scale organizations will need to automate their compliance process


Businesses with new customers daily, such as banks, need to automate their workflow. This is why financial institutions should automate compliance. This digital banking solution makes it easy for banks to onboard customers faster and easier

What Steps in a Customer Onboarding Process can be Automated?


1. The Sign-up process: 


A frictionless sign-up process ensures you don't lose a potential paying customer. Ask for necessary information but don't make your customer feel invaded already.


2. A customized welcome page and User Experience: 


According to statistics, you have 8 seconds to keep a lead on your web page. Don’t miss out on the opportunity to create a good first-time experience with your welcome page. A personalized welcome page tells your new customer you value everyone who visits your website before they even have the opportunity of talking to you.


3. Suggest a Demo: 


With the digital customer onboarding process; your customers don't have to wait for a call. Automating your product or service demo will help them reach a decision. 

4. Short Random valuable and Educating Information: 


Automating valuable tips relating to your company to your new customers will help them know more about you.

 5. Automate walkthroughs on key areas where customers may be stuck.

 When a customer is filling out a form on your website, automated walk-throughs serve as a key in guiding them should in case they need help when you are away.


Recommended - Cross-Border Payments Solutions - Everything you need to Know


What are the Benefits of Digital Customer Onboarding Process- Why you should Digitize your Customer Onboarding Process?


If you are still not sure if you digitize your customer onboarding process or start using digital banking solutions as a bank, we will give you good reasons to. 


1. Digital Customer Onboarding Process Reduces Dealing with a Fraudulent Customer:


First off, digitally onboarding your customers helps to detect if your customer or a potential business partner has a history of fraud with other companies which may be impossible when you go the manual way.

Every information you need is almost on the internet. Through digitalising your customer onboarding process, you can come across the list of blacklisted companies reducing the risk of getting fined as a result of doing business with such a country. 

The manual way leaves you dealing with paperwork all through the process thereby missing out on vital information about your new customer.


2. Automated Digital Onboarding process Saves Time and Reduces Errors


Digital onboarding process permits you to onboard a large number of customers at a time while reducing the risk of error that comes with handling large data. It is a faster and more efficient way to acquire a customer.

3. Cost Optimization:

 Digital Onboarding saves costs that would have gone into transporting to physical locations, record keeping and auditing.

 4. Improved Internal Workflows

Digital onboarding improves internal workflows while allowing staff to see where customers are in the onboarding journey


Suggested ReadWhy is KYC important


Get Ahead with Your Customer Onboarding Process using YouVerify Compliance Workflow Automation Tool


Stay ahead by implementing digital banking solutions as a financial institution. Conduct your digital customer onboarding process using Youverify compliance workflow automation tool.

Acquire more customers without waiting around for traditional compliance systems. Youverify Compliance Workflow automation tool lets you combine 300+ data sources into a single workflow and make automated decisions with accuracy.

Join several 100+ companies that digitise their customer onboarding experience.

Ready for a digital journey with your customers? Request a demo.