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The 7 Most Important Factors for Optimal Customer Onboarding in the Financial World

14. May 2020 / in Risk and Compliance

First impressions count. The first contact with your new customers and the onboarding process shapes the relationship permanently. Are you a bank, a financial services provider or an up-and-coming FinTech? If so, you will know exactly how crucial it is for today’s financial sector to offer products and services that are tailored to the needs and preferences of customers – not the other way around. Do you really want to overwhelm your newly acquired customers with complex processes and a plethora of questions right from the start? No, that doesn’t sound like a good idea.

However, the start of a new customer relationship is always the beginning of a relationship with an unknown person. Onboarding new customers is full of potential risks that must be avoided. A solid knowledge of your own customers is of paramount importance for successful fraud prevention.

But it does not stop with risk management, because product managers in particular know the other side of every process. For you, the challenges of our professional world also apply to onboarding: minimising costs and achieving scalability are a priority today, and every product in a financial company is examined accordingly.

Innovative onboarding helps you to overcome these diverse challenges and make the individual steps of getting to know your customers more customer-friendly, easier and cheaper without having to take any risks. Read this blog post to discover what you can do to ensure optimal onboarding – both for you and your customers.

CTA Ident  Whitepaper EN

1. Maximum Ease and Convenience

Before opening an account, banks normally ask prospective customers a whole series of questions. However, there is nothing to say that the onboarding process must be complicated. Innovative FinTech service providers have made it their business to optimise existing processes. Their motto: onboarding methods can and should be convenient!

2. Standardised Data Retrieval

Extracting data and information about your customers is often time-consuming and can quickly become confusing. With a standardised technology-driven identification method, you lay the foundation for a well-organised, traceable customer file.

This provides you with a structured overview of the customer relationship, which saves time and money in the long run and constitutes the most important step towards scalability. In addition, you act in the interests of your customers and the legislator by not requesting irrelevant information and instead using it exclusively to perform your duties.

Technology companies have mastered the use of data to perfection. What does the situation look like in banks though?

3. Secure Know Your Customer (KYC)

The Know Your Customer principle was created as a set of rules for onboarding customers to prevent fraud and money laundering. As part of the know your customer process, secure identification protects all parties by guaranteeing that the customer relationship is entered into in a legal manner and with legitimate parties. Innovative onboarding methods increase the security of onboarding by eliminating frequent, often human sources of error.

Infographic KYC Process

4. Digital Only

Your customers are becoming increasingly active in the digital realm, both professionally and privately, and they expect the same from their financial provider. The same “digital first” approach adopted by Open Banking, which is transforming the rest of the financial world with digital technology and agile methods and making risk management safer, faster and smarter, can also optimise onboarding processes. The advantages of digital onboarding without any media disruptions ultimately benefit both you and your customers.

Open Banking enables the perfect customer experience! Find out here how you can offer your customers the best possible customer experience with excellent data and banking in context.

5. Identification Compliant with Money Laundering Act

Under the Money Laundering Act, financial service providers are obliged to verify the identity of their customers before concluding a contract with them. The legislator has defined certain security requirements for this purpose. For example, the Money Laundering Act requires companies in the financial sector to carry out a suitable legitimacy check when onboarding customers. Therefore, make sure you choose a compliant identification method for your onboarding processes.

CTA Open Banking against Fraud Whitepaper

6. Fast, 24/7 and Without Waiting Times

Internally, onboarding is often artificially slowed down by inadequate data, complicated processes, the use of employees for repetitive tasks or partial digitalisation. However, it becomes really problematic when customers feel this directly. Aim to provide scalable processes with automatic steps and short waiting times. If possible, opt for a 24-hour service. Automation and scalability are the two magic words!

7. Unbureaucratic from the Outset

The banking world has long been calling for less bureaucracy. Many people feel that despite digitalisation, small improvements and the customer centricity of PSD2, the financial sector is not adapting enough to customers’ relaties and wishes. Within companies, bureaucracy eats up a lot of time, causes added stress and unnecessarily wastes money.

The stakes are high, however, especially in terms of safety. Think carefully about which onboarding processes you can make more customer-centric, but also about where you’d be better to play it safe. Or could you choose an onboarding method that combines both?

2. Infographic_EN-2

Are you interested in onboarding compliant with the Money Laundering Act that will finally generate enthusiasm among your customers? Let's talk about your individual requirements.

Schlagworte: Risk and Compliance

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