As the threat of disruptive financial institutions continue to rise, large market incumbents that rely on traditional processes to onboard new clients are in danger of becoming obsolete. In present day, the most successful products offer incredibly simple and effective onboarding experiences that consumers have come to expect in every facet of their lives. As more digital-first challenger institutions enter the playing field customers will have the ability to sign up to a new service within minutes. Business and commercial customers will continue gravitating to financial institutions that provide the same low-touch experience as the consumer digital services they are familiar with.
Onboarding the client is the big event - you have earned their trust through cultivating relationships and prioritizing the goals of the client. A seamless customer experience requires flawless execution from the first touchpoint through the post-purchase. Firms who care about clients and partners are willing to invest in enhancing these experiences, as onboarding will augment strategically expanding share of wallet with other product suites.
The Challenges Facing Financial Institutions
The impact of the rapidly evolving digital landscape has been seen in every aspect of our lives. However, financial Institutions are ripe for disruption as they have historically lagged in the adoption of new technology as an essential part of their business. The following two technological developments are poised to shape the financial institution industry:
Fintech - The largest technological impact on the banking industry is the ability of fintechs to focus on state-of-the-art technology that create new business segments with higher returns, while traditional banks still offer less profitable services. Fintech has changed the way consumers access their finances and poses a threat to traditional brick-and-mortar banks.
AI and Machine Learning - The exponential growth of data, machine learning, and cloud computing offer an enhanced customer experience. New technology driven firms offer fast product delivery, data driven risk modelling, and personalized products that older financial institutions are unable to compete with. As AI and machine learning continue to improve, financial transactions and investment decisions will be less risky for new disruptive companies to benefit from.
How FIs Can Learn from Other Industries
What constitutes an excellent onboarding experience is dependent on what need the product is fulfilling, which is why customer onboarding (just like the product itself) should be developed with a user-centric approach. Financial institutions must turn to other markets leading the way with onboarding success and extract best practices into their own organization. Some examples of leaders in customer onboarding include:
Best Practices for Delivering an Exceptional Customer Onboarding Experience
1. Minimize unnecessary information gathering
Overwhelming customers with unnecessary requirements leads to an unpleasant experience that customers will be adverse too.
2. Give customers clarity on why you are asking for specific data
Do not overcomplicate the process. Compliance is incredibly challenging in the world of financial institutions and easing that process is beneficial to the client and the provider.
3. Provide seamless integration across touchpoints
Clients need to feel they are having a seamless integration experience whether they are sitting face-to-face or over a digital platform. The experience should be cohesive no matter the medium – they should complement each other.
In today’s increasingly competitive market, financial institutions that fail to improve their onboarding process will risk losing the customers they have worked so hard to gain. Every customer is now looking for new ways to interact with their service providers and expect a seamless and efficient onboarding experience. In order to achieve a significant competitive edge, organizations must realize that onboarding is not a one-time exercise; it is a continuous process that must be actively managed throughout the entire customer relationship.
To learn how PlatformZeroSM can help your organization address customer onboarding challenges and provide an exceptional onboarding experience, contact us at solutions@capco.com