Digital onboarding can be handled in two ways. First, companies bring online the typical engagement process for digital engagement processes, the countless forms that new employees need to complete, their training, and the learning of company policies.
Secondly, The digital customer onboarding process is the process of companies getting new customers. Digital Onboarding aims to enable customers to integrate quickly and simply in all services and products of the company. Because of the fact that financial institutions aim to gain a new customer and also not to lose their communication with existing customers by “ won and win back” techniques.
What is Digital Onboarding?
The companies go through a process of participation to ensure that workers comply with the company and understand the work they do in detail when they make new business purchases. This participation process is rather boring and time-consuming as long as it is done by traditional methods. So this process becomes quite annoying and challenges for both parties (worker and manager). Companies aiming to realize their technological transformations can realize this process quickly and simply online with their Digital Onboarding Processes.
On the other side, It is very important to gain new customers for financial institutions. Ads and campaigns are activities to acquire new customers. You can attract customers this way, but are these activities enough to have permanent customers? Customers now demand fast and straightforward interaction from financial institutions. Nobody wants to deal with complicated processes these days when time is very precious. That's why the customer engagement process should be fast and straightforward to turn the customers you attract through campaigns into your regular customers. With Digital Onboarding processes, fast and simple transactions that customers expect from financial institutions can be realized.
Why Companies Prefer Digital Onboarding?
There are many reasons companies prefer Digital Onboarding. The most important reason is that customers prefer this system. While competitors use this system, companies using traditional methods are unlikely to stand out in the market. With digital onboarding, customers can easily handle processes such as application forms, approvals, signatures, Know Your Customer (KYC) verification via an application or web interface. It recognizes your Customer Information and prevents any possible risks. For example, if your client is a potentially risky person or if the customer will perform money laundering and terrorist financing through his account, these risks are prevented by CDD and KYC procedures.
Moreover, Digital Onboarding is preferred because it does not address a single customer profile. That is, it can meet the different needs of different customers. It can visualize the data in your customer processes and create comprehensive reports. Reports can be used to improve performance, and companies don't waste time preparing these reports.
Digital Onboarding Process
The digital onboarding process is the official start of a direct relationship with a customer, and this is the process that decides whether the potential customer has an existing customer for companies. With the digital onboarding process, potential customers are much more likely to return to permanent customers for financial institutions. Each customer is different, and these customers' needs can differ from each other. Companies can easily serve different customers with digital onboarding processes.
Digital Onboarding Processes for the customer:
- Attract customers
- Opening an account to these customers in the companies' digital system
- Enabling customers to discover and interact with the account
- Sharing valuable texts of finance with customers
- Motivating with customers and getting feedback from them,
- Improving customers' relationships with companies
- Providing products and services to customers to make sales
Digital Onboarding Trends
Technological transformations are very important for companies, and these transformations are very important for companies to comply with the agenda easily. Digital Onboarding is also an important part of the technological transformation processes of companies, and Digital onboarding has some trends.
Speed and Automation
Customers demand a fast and seamless digital experience from companies. For this, companies must have a quality, simple, useful, and secure participation process. Automation is required for simple and fast processes. Digital Onboarding can automate the scanning of customers 'records and transactions' documents, face matching, and identify the type of automatic identification document.
People now prefer biometric technologies more in order to protect themselves from cybercrime on the cracking of simple passwords. As a result of the advances in Artificial Intelligence and Machine Learning, it is increasingly reliable in the algorithms used. Companies use biometric facial recognition systems to ensure their customers' confidence in their transactions. They can easily realize this system with Digital Onboarding.
Passive Viability Detection
Passive facial vitality can be used without requiring user interaction. In other words, operations can be performed without interacting with applications such as face detection or voice detection. Thanks to these applications, as the information of the users is registered, the criminals cannot reach their accounts and can not commit financial crimes.
Improve Customer Experience
Companies can perform transactions that are really important to their customers with analytics and artificial intelligence (AI) and respond to customers' needs as accurately as possible. Thanks to this system, the customer experience is highly developed because companies recognize their customers. As a result of the benefits of these systems, customers give positive feedback to the company, and stronger collaborations emerge.
Digital Onboarding Technical Application
Companies can integrate Digital Onboarding processes into their digital infrastructure. Companies should always be in contact with their customers. These days, when everything is digital, this communication can be easily carried out online. For example, this communication can be enhanced by sending messages to customer e-mails or phones and informing them of new developments. These communications are made to improve customer satisfaction and keep the customer permanent, but the most important reason communication is to be able to sell online.
In order to sell to the customer online, it is necessary to know what the customer needs or wants. Companies can access custom applications, user history to track customers, and provide relevant information. Companies can get real-time insights about customers and perform A / B tests to learn about customer needs and optimize their experience in time. The infrastructure used in the implementation of all these techniques provides API support. With the API infrastructure, companies can easily integrate digital onboarding processes.
Digital Onboarding and Money Laundering
There is a cooperation between government and regulatory agencies to combat law, money laundering, and financing of terrorism. Financial industries must comply with some regulations created by these institutions to prevent ML / CT. While companies working with traditional methods try hard to comply with these regulations through manual processes, they can find it very difficult to improve their customers' experience and retention. Digital onboarding provides convenience for this. It prevents bad practices from alienating your potential customers. When a customer opens an account, customers present the customer's name, date of birth, address, nationality to the company and stores this information for later.
On the other side, there is a crucial point that it should be considered, Digital Onboarding helps KYC data flow from companies to regulators. Hiring corporate customers is even more difficult due to the implementation of anti-money laundering processes and the necessary research for the Ultimate Beneficial Owner (UBO). Some corporate customers may have higher risks, and thanks to the digital participation benefits of these customers, companies can reduce risks. As a result, Digital Onboarding is a convenience for companies to comply with AML / CTF regulations. Thus, companies are not subjected to severe penalties imposed by regulators, and they can also maintain company reputation.
Digital Onboarding Advantages
Nowadays, the issue of how important time is to people is indisputable, and now the threshold of patience for people is very low. So, when they want to trade with any institution like banks or want to open a new account, what they are looking for is simple and fast transactions. No one prefers slow, long-term, complex processes, so companies try to complete their technological transformations to take advantage of the speed and convenience provided by technology. As we mentioned earlier, Digital Onboarding is one of the technological transformations for companies. With Digital Onboarding, companies can gain regular customers. Digital Onboarding has many advantages for both customers and employees; you can find them below:
- Provides customers with more flexibility and a user-friendly interface
- Reduces the burden of manual interventions with automation and increases productivity
- Provides better user experience, thus increasing customer satisfaction and loyalty
- Increases the number of account openings allows for more transactions
- It reduces the recruitment time of the customer, and new customers can complete their transactions within minutes.
- Financial institutions reduce the risk of money laundering with improved Customer Due Diligence processes.
- Training for new employees can reduce costs as they spend less time online.
- New employees can start work earlier, as they complete their training quickly and easily and also do not waste time filling in documents.
- Provides the most up-to-date version of new hiring policies and forms
- It can provide reference materials for employees to use their data in the future.
- Companies can comply with all legally required forms with the digital onboarding process, so they are not subject to any penalties.