TOP 5 Digital Customer Onboarding Trends 2022
Deloitte research reveals that at least 38% of clients dropout during the onboarding process, frequently out of annoyance with the sheer volume of touchpoints and paperwork involved.
So Let’s see the current state of Bank customer onboarding process
- Lengthy, complicated paper documentation of the records.
- Regulatory and legal frameworks that make it mandatory for customers to vist bank branches.
- Lack of intent based personalised product recoomendations during the onboarding process increases the dropout rates of the clients.
- According to Reuters, 85% of corporate clients do not have an appropriate KYC procedure.The long hours of onboarding process increases the operational cost for the banks.
- AI solutions such as data extraction, face match, liveness detection are not available that ease the onboarding process.
- There is no post onboarding engagement such as nudge campaigns ,offers for newly onboarded customers, reward points etc. that increases post onboarding dropouts.
According to the findings of a new global client onboarding survey conducted by Forrester, more than 64% of banks report lost deals and revenue as a result of issues in the current time consuming onboarding process, with more than 20% of respondents indicating they've lost between 26%-50% of new business opportunities as a result of onboarding issues.
Banks need to adopt innovative practices and move beyond legacy systems that hinder the smooth customer experience. Customers in recent times demand exceptional digital customer experience from the banks. Financial institutions need to eliminate onboarding barriers by simplifying the financial tasks, beginning with product , price comparisons, technologies and extending through onboarding.
In the BFSI sector, digital onboarding resolves some of the long-standing concerns with traditional onboarding approaches. It enables businesses to onboard new clients remotely quickly through integrated customer journeys. The digital onboarding process becomes essential for the competitiveness of banks when delivering the customer experience, as it increases conversion rates. Nine out of ten banks employ digital onboarding technology to increase customer acquisition.The exceptional customer service has direct linkage with customer retention that increases brand reputation and revenue which increases cross sell and upsell opportunities for the financial institutions.
Furthermore, investing in a modern onboarding process has the ability to save costs, enhance productivity, and eliminate obstacles and response time while easily adhering to some of the most stringent requirements.
Future - Five Top Technology Trends in Customer Onboarding 2022
According to a Gartner report, 81% of firms compete solely on the basis of customer experience (CX). There are a wide range of new technologies, such as augmented reality, voice assistants, cloud computing, and others, that can be used to engage with clients
Here are top five trends in customer onboarding that can provide frictionless customer experience :
1. Financial Advisory Services
With the use of customer relationship management (CRM) technology, the financial institutions can gather, evaluate, and create thorough client profiles. The internal advisers can use these profiles to get a comprehensive understanding of the customer and their preferences. This information enables advisers to provide tailored products to clients at every point of their financial journey, foster deeper client relationships, and ensure client loyalty.
2. NLP-powered AI Chatbots
With the help of conversational AI chatbots, the onboarding process can now be more automated, which results in a better customer experience and increases revenue in a shorter time for the financial institutions. A multilingual conversational bot can verify the user's identity, answer their queries , gather the relevant data, automate the process, and give updates or reminders. The digital assistant also responds to customer inquiries as they arise throughout the engagement, but at any point, it can delegate to a human agent who can handle other unique concerns. As per IBM research data , chatbots can save cost upto $8 billion by 2022.
3. Multiple Digital Channels
According to the Financial Brand, 60% of customers still use physical branches as their primary point of contact with their bank.Multi-channel onboarding has the ability to greatly impact business performance and growth. When the right message is delivered at the right time and through the right channel, it increases customer engagement, satisfaction, and sales. According to the Digital Banking Report, approximately 42% of banks prioritise digital channels for more efficient cross-selling.
4. Human + AI
AI and live support for customer service provide efficiency while maintaining the personal touch . Some financial institutions have taken this concept a step further, experimenting with various methods to make their chatbots and other AI services feel more human; for example, giving chatbots personalities, using customised conversation openings, and using sentiment analysis to detect emotion and respond appropriately.
5. Hyper-personalization services
AI Recommendation engine helps banks to engage with the customer with right product recommendation, at the right channel, at the right time based on the historical data. The AI based recommendation engine uses predictive analytics and Big data to create personalised “moments” across customer interactions across channels.
See how I&M bank enabled self service and agent assisted account opening for Retail and SME customers with inbuilt guidance on product selection and real time account opening for NTB prospects and ETB customers and deep integration of BankBuddy Digital Onboarding with Finacle Core banking system from Infosys.
AI enables banks to provide the best possible customer experience, design methods for effective client onboarding, and identify gaps in customer onboarding processes.Onboarding processes that used to take three weeks or more to complete are now completed in three minutes or less by adopting innovative practices. Employees and customers both save time, which decreases bureaucracy and the chance of losing a banking customer.