The Digital Onboarding Marathon
In a “business-as-usual” environment, digital onboarding transformation is a challenging undertaking. While it should involve sprints, overall, it is a marathon. In the extraordinary environment we are experiencing today, the marathon will have twists and turns based on shifting customer needs (e.g., demand for services that improve working capital) and government initiatives (e.g., credit-related programs). Banks that keep the marathon pace will be in better shape in a post-COVID-19 world than those who do not. By reducing onboarding pain and bringing transparency to the process, the pacesetters will have earned greater customer trust. Trust is an asset that is pandemic and recession proof.
Digitization of onboarding results in a win-win. Successful top tier banks report dramatic reduction in onboarding times from weeks to days. The revenue boost from serving a large corporation three weeks sooner could easily be over a $100,000. Moreover, the beginning of a client relationship sets the tone for deepening the relationship. Banks in the digital vanguard have found that if clients have a positive digital onboarding experience, they will likely use both the bank’s self-service and unattended (host-to-host) channels more.
Bank employees are also winners. Banks state that their relationship managers report improved job satisfaction as they can focus more on adding value for clients by gaining 10% to 15% extra capacity. The bank overall wins by reducing their costs through automation and error reduction with some reporting errors down from 60% to 5% and processing time down as short as a sixth of the time.
To learn more, please see the Celent report Digital Onboarding: Best Practices and Vendor Spectrum.