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Banks and financial institutions face a historically daunting challenge: how to increase customer acquisition rates while ensuring cost efficiency.
Before the digital age, customer onboarding involved an array of complex documentation, multiple trips to the local branch, and potentially having to start all over again if any information is missing. The institution risked losing the customer because its process was complex and unfriendly. And that risk hasn’t been completely eradicated in the digital age. Unintuitive, semi-digital, and imprecise technology-based onboarding leads to unfulfilled customer acquisitions.
Customers have evolved to expect a simplified process, as each new service they sign up for requires some form of verification. For banks and financial institutions, the need for intuitive, sophisticated verification tools and steps is high. This is especially true in the wake of the pandemic as reliance on remote KYC for customer verification has risen rapidly.
Industry research has shown that over 50% of customers don’t complete their onboarding process due to a variety of factors.
Research in the industry reveals that over 50% of customers fail to finish the onboarding process for various reasons. The volume of information needed, time commitment, complex forms, and lack of trust in communication channels all hinder customer acquisition. This is significant as more than 64% of banks have encountered revenue losses resulting from difficulties in their current onboarding processes. Such problems can severely impact an organization, as the cost of customer acquisition exceeds 20 times the cost of customer retention.
Securing repeat business in the digital age can be as simple as providing customers a service via their channel of choice. With their traditional means, financial institutions risk the potential of customer dropoff.
85% of customers will delete an app if they’re not rapidly convinced that it’s smooth, simplified, and intuitive. If they can’t figure out how to use it, they’ll find an alternative institution.
59% of customers want their in-app experience to cater to the way they live, and not the other way around. Highly personalized UXs that guide users intuitively rather than passing them onto a customer service representative reign supreme in this regard.
The benefits of an onboarding experience that also reflects the intuitiveness of the app’s user experience is also clear:
Highly-engaged customers transact 90% more frequently, and spend 60% more than their non-engaged counterparts.
Customers are 70% more likely to seek an alternative digital experience that meets their needs if the process is too difficult.
What’s clear is that in order for customers to stay engaged they must be provided a simplified, uninterrupted customer experience workflow that meets the institution’s protocols and regulations, and works against the source of acquisition drop-off while being fast, responsive, and intuitive. Banks and financial institutions must begin to implement technologies that not only transform the onboarding experience, but exceed customer expectations.
Our client wanted to offer its customers a completely digital onboarding process. They wanted to increase their customer acquisition and conversion rates without extensively replacing their existing technology infrastructure. We implemented and launched transformative changes to this organization’s onboarding processes within 30 days. It reduced manual processing times by 95%, and reduced the cost of customer onboarding by 60%.
Our client has consistently achieved a staggering 80% conversion ratio, ensuring every customer who starts the journey ends up with an active bank account in under 7 mins.
Digitization of the customer onboarding experience is an immediate step that institutions can take to fast track their digital transformation journeys. And we look forward to each opportunity to empower the financial landscape.
Tagged:
- digital onboarding, global
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