In the digital age, both traditional banks and fintech companies are navigating the shift toward online services. Research by Visa underscores the critical role digital onboarding plays in elevating customer satisfaction and engagement. This article explores five key strategies for banks to optimize their digital onboarding, enriched with industry examples and expert insights.
Here are 5 key insights for banks to optimize their customer onboarding.
- Embrace the Fully Digital Journey
A fully digital onboarding experience is now a necessity for both banks and fintechs. With a focus on efficiency and innovation, these institutions can meet evolving consumer expectations. Today's consumers prefer the efficiency and convenience of digital solutions. Banks must transition to fully online application and account opening processes. Visa's research highlights that banks with digital onboarding experience customer satisfaction levels 80% higher than those with traditional methods. For instance, DBS Bank in Singapore has set a benchmark in digital onboarding, offering a swift and paperless account opening process, significantly improving customer acquisition and satisfaction.
- The Five Pillars of Effective Digital Onboarding
Successful digital onboarding hinges on:
- Optimized Process: Streamlining the onboarding experience.
- Simplified Journey: Creating an intuitive user journey.
- Seamless User Experience: Ensuring smooth transitions across various platforms.
- Cutting-edge Security: Prioritizing robust security measures.
- Leveraging Technology: Embracing AI, machine learning, and other technologies for a personalized approach.
- Implementing Best Practices for Banks and Fintechs
Key practices include using straightforward language, offering instant virtual card issuance, and ensuring quick onboarding completion. For example, BBVA uses language simplification in their digital platforms to enhance user comprehension and convenience. Institutions like Goldman Sachs and fintech companies such as Chime exemplify these best practices in action.
- Instant Account Access: A Critical Factor
Immediate account access post-onboarding is vital for both banks and fintechs. This approach not only boosts customer satisfaction but also increases transaction volumes. Offering immediate account access post-onboarding is crucial. For example, Revolut provides instant digital card issuance that customers can use with Apple Pay or Google Pay right after account setup. This feature not only improves customer satisfaction but also boosts transaction volumes. Fintechs like Square and Stripe excel in providing instant usability and easy integration with digital wallets and online payments.
- Collaborative Technology Partnerships
Working with fintech experts like Deposits Inc can streamline the digital transformation. Their expertise in financial technologies aids in creating a more efficient and customer-friendly onboarding experience. An example of this collaboration is the partnership between JPMorgan Chase and OnDeck, which leveraged OnDeck's technology to enhance the digital lending experience for small business customers. Such partnerships can similarly help fintechs scale their services and improve customer experiences.
Ready to Transform Your Digital Onboarding?
Whether in traditional banking or fintech, these insights position you at the forefront of customer satisfaction. For more information on how to revolutionize your digital onboarding process, contact us today. Let's work together to create a seamless digital banking experience for your customers.