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Integrated Customer Onboarding: Battlefront for Competing Banks

Evolving technologies, cut-throat competition, disrupting Fintech, and demanding customers have created a butterfly effect that has produced unprecedented changes for banks jostling for customer attention.

There’s ample amount of evidence supporting the idea that superior customer experience plays the role of a significant differentiator in a field where competitors offerings are approximately the same. Incomparable service is responsible for accentuating return on investment and bank’s market share. It’s no wonder that banks are doing everything they can to deliver a delightful experience to their customers.

Customer onboarding has a lasting impact on creating a strong first impression of a bank. Despite being the key perception builder, many banks are unable to make the online application process smoother and simpler. Manual processes contribute to this inefficiency.

Being archaic in nature, banks deliver a cloudy customer experience, driving businesses on the back foot. Say, for instance, a customer liaises with a bank to open an account for a high-priority transaction. Complicated and lengthy onboarding causes a major obstruction in this process, and if the bank still dawdles, the customer can turn to competitors. As per a KPMG report, almost 89% of customers choose to go with competitors after receiving a poor onboarding experience.

Customer onboarding acts as a brilliant prelude in helping banks capture potential customers and eliminate churn. Satisfying onboarding experiences offer a good headstart to customers, driving profit numbers. As per statistics gathered by KPMG, with only a 5% reduction in customer defection rate, profits can rise up to 95%.

So, what are the pain points that rob incumbent banks of profit numbers owing to poor customer onboarding process? The challenges can be summed up as:

  • The evolving regulatory compliance landscape with the introduction of new clauses in the Anti Money Laundering (AML) laws, PSD2, GDPR, and the FATCA regulations has become highly complex. This involves time-consuming processes that include identification and authentication of the user. Such intense cobweb of regulatory compliances complicates onboarding processes. Hence, banks struggle to respond faster, consequently losing prospective customers.
  • User experience is a key differentiator, incumbent banks that fail to compete on this battlefield are bound to lose market share. FinTechs revolution that has propelled a rigid competition seems to take advantage of this situation. Winning over insatiate clients of incumbents, they are gorging a lion’s share of the banking pie.
  • Many incumbent banks rely on legacy systems that do not meet the changing tastes of millennial consumers. Millennials vouch for digital systems only, and conventional platforms cannot live up to their demands.Incumbent banks that use legacy platforms to integrate their systems and applications have to resort to manual intervention techniques that are not adept to identify and resolve errors, especially in this big data era. This leads to process inaccuracies and compromised onboarding.

Additionally, legacy systems fail to collate data and make it available across the system in a uniformed way, disturbing the flow of data movement thereby slowing customer onboarding process. This lays a quantifiable impact on key variables like reputation, customer trust & loyalty, new customers, and brand equity.

Wrinkle-free Onboarding is the Answer

Incumbents need to adopt a customer-first, lean integration approach with digital onboarding as the keystone to offer a delightful customer experience. With faster onboarding, organizations can minimize the frustration of consumers, positively influencing both the top and bottom lines to promote growth and innovation.

See how Adeptia’s integration platform enables incumbent banks smoothen their onboarding process to offer delightful customer experiences.