Digital onboarding: what is it and how does it work in banking?

Digital onboarding processes have been taking place in this way for several years now. With the arrival of the Covid-19 pandemic at the end of 2019, the adoption of this form of onboarding has been accelerating.

We call digital onboarding the process in which customers sign up online, or the process in which those who are already customers learn how to handle a new product through a digital channel. For example, digital onboarding in banking is widely used to familiarize users with how to use the products offered by the bank, all online.

Digital onboarding in corporate banking

The main difference between traditional and digital onboarding is that digital onboarding can be done at any time and from any place. This means greater convenience for users, who no longer have to go to a bank branch to register a product or manage their accounts and so on. The fact that there are digital onboarding solutions that allow banks to set up this complete onboarding is good news for customers.

The companies in charge of the setup of the platform that allows digital onboarding, provide all the solutions to bring benefits, such as:

  • The validation of user documentation.
  • Verification through the use of biometric factors.
  • Proof of life.
  • Monitoring of the status of the online process.
  • Confirmation of all this through notifications received by users.

The fact is that today, most customers expect to be able to self-manage most processes and to do so remotely. Onboarding is part of this. Having a solid onboarding system in place will make your customers recommend you to others since the process is smooth and simple.

Furthermore, with digital onboarding solutions for banks, fewer data is lost and any regulatory changes that happen, the system adapts to it automatically. It’s a win-win situation for both banks and customers.

To summarize, digital onboarding beats traditional onboarding in terms of:

  • There’s far less data loss.
  • Processes are faster and more efficient.
  • There’s no need to use paper forms, which are inefficient and time-consuming.
  • Online onboarding allows complete transparency in the application process.

Plus, there’s something called back office onboarding which refers to an online tool that allows the visualization and information management of the customers who register online.

In this way, administrators can follow users’ operations and guide them through the onboarding process and in the use of general operations.

5 benefits of using digital client onboarding

We’ve already mentioned some pros of implementing digital client onboarding. Let’s explore this a bit more:

  1. It saves costs since companies need to spend less manpower on customer onboarding.
  2. Customers feel they are in complete control of what they do. They log in when they want, buy what they need when they choose to do so, and so on.
  3. Storing information digitally makes processes more accurate. That is, the information can be easily accessed and checked whenever any employee needs it and it is easier to find. At the same time, making any modification is much simpler than if it had to be done physically.
  4. Users have access to the different tools and resources offered whenever they need to use them. They are one click away from being able to watch tutorials or contact someone to help them out.
  5. It makes processes more efficient for both companies and customers. In the case of banks, for example, employees no longer have to print out forms for users to sign. Nor do they have to repeat the same three sentences fifty times a day, since most customers now do all of this online.

Now that you know all about digital onboarding and all the processes that are simplified while being digitals, are you ready for a change?

Offering users digital onboarding is a must today. It’s something highly sought after by those who are thinking of hiring a service or product. That’s why getting on board with this trend is crucial for the business to continue to grow.

The best way to know which is the right process for a company is to contact experts in the field who will know how to advise them and choose the most convenient one for them.

If you have any questions, please ask below!