Welcome to our meticulously curated KYC/KYB category, a comprehensive repository dedicated entirely to the multifaceted dimensions of Know Your Customer (KYC) and Know Your Business (KYB). As we stride deeper into the digital era, the procedures around KYC/KYB have emerged as a fundamental pillar, ensuring secure and compliant operations within the financial landscape.
The articles housed in this category plunge into the complexities of KYC/KYB, discussing its inherent challenges, potential solutions, and its indispensable role in the realm of identity verification. Our articles traverse a wide array of topics, ranging from the application of artificial intelligence in customer due diligence processes to the impact of regulatory shifts on KYC methodologies. These writings cover a broad spectrum of subjects, offering relevance to businesses and professionals operating within the financial industry.
As a leading industry player in the domain of digital identity verification, Signzy stands at the helm of innovation in KYC/KYB. Our cutting-edge solutions are engineered to simplify KYC, making these procedures faster, more efficient, and notably secure.
Regardless of whether you’re a compliance officer diligently maintaining regulatory standards, a fintech entrepreneur navigating the challenging waters of the financial industry, or simply an individual interested in gaining a deeper understanding of the evolving world of KYC/KYB, our category offers a treasure trove of information and insights.
We invite you to join us on this journey of exploration as we dive into the future of KYC in the rapidly evolving digital age. Our articles aim to enlighten, inform, and provide a well-rounded perspective on the significant role that KYC processes play in today’s digital financial landscape. Welcome to a world where knowledge becomes power, and compliance becomes simplified.
In 2018 India had a sale of more than 3.3 million passenger cars making it the 5th biggest car market in the world. Lion’s share of this was financed or bought on loans(Vehicle Financing) which amounted to more than 2.6 million vehicles. Since then the annual car loan market has stayed north of Rs.1.25 trillion in value in the country.
It is time the Financing industry took up the mantle and utilized this ecosystem. It will be a win-win situation for the lenders and the lendee. Unfortunately, it’s far easier on paper than in practicality. With the tremendous demand scalability of loaning is constrained while the threat of fraudsters is also on the high. Thus an easy solution for verifying and onboarding customers is essential for financing entities.
What Are The Challenges In The Vehicle Financing Industry?
With the increasing demand, the industry faces many challenges to resolve. With the plethora of incoming applications, it is cumbersome and time-consuming to process all documents manually. It is not efficient and even borderline whimsical. The TAT for the whole process is a major roadblocker for onboarding. The fact that manual intervention results in numerous human errors also adds to this argument.
As most financing institutions are indulging in scaling their processes, traditional modes of financing and onboarding the customers are not pragmatic. Scalability brings a form of synergic profitability as replicable system is more preferable. Traditional methods lack this.
Additionally, fraudsters, scammers, and illegitimate customers may cook up ways to avail of loans that they otherwise wouldn’t. The advancing technology they are using aids them in this deceit. The only way to halt fraud using technology is to use better technology. In India, many financial institutions are yet to create an environment with technological competence.
In summarizing, the major challenges in the auto-finance industry are:
The high TAT required
The inefficiency of in-person verification
The undeniable human error factor
The impracticality in Scaling
Advanced Financial Fraud
How Can We Tackle The Challenges With Technology?
The unprecedented pandemic and the advancements in technology boosted automation in ways we had not experienced before. Even before the pandemic the government and the regulatory authorities saw the trajectory of technology. They have instated regulatory and compliance guidelines for digitizing financing and onboarding processes.
Digitization is the key to smoothening vehicle financing. It helps us get rid of human errors while drastically reducing the TAT for processing. Long queues and waiting lists can be eliminated. Instantaneous processing replaces it with technology.
The Indian car loan market is expected to grow by a dashing 8% by the fiscal year 2026. But this is possible only with all the major players digitizing their processes. A completely digitized system makes massive scalability practical and easy. When each competitor is scaled to a good extent, the industry proliferates.
With adopting digitization, it is easier to store, retain and retrieve data. Almost all information is in the soft copy format. This reduces the capital resources required and storing documents is no longer a headache. If the system is secure, then the data is safer than it is in hard format. This leads to safer transactions as fraud is detected swiftly and necessary measures are taken to stop it. With a good security system, all-digital processing is fortified.
In essence, digitization makes vehicle financing:
Faster with reduced TAT
Profitable with easy scalability
Not prone to human-errors
Store data as soft copies
Secure against fraudsters
Why Signzy Is The Right Choice
With the strict competition, almost all financial institutions are making their loaning process easier. This makes it all the more needed to identify and verify the customers availing loans while ensuring all the needed regulatory and safety measures. But the catch is that, how do you fulfill all the criteria of regulations and safety while maintaining an easy journey for each customer? This is what we excel at.
We at Signzy give you customizable APIs and other resources that help you conduct safe and compliant customer onboarding, KYC, and all other requirements you have. Our RC API verifies all vehicular registrations in the country with valid government databases. We will help you onboard customers availing auto-loans with ease and safety while the seamless UI will make the journey all the more engaging. With numerous products, services, and resources in our arsenal, we can make your enterprise better.
About Signzy
Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.
Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.
Shared Consumer Goods represent a shift in modern consumption patterns, emphasizing accessibility over ownership. As the global community becomes more environmentally conscious and urban spaces more constrained, the idea of owning every product outright becomes less feasible and less attractive.
In 2019, the rental industry has made a huge market in India with estimates that the market stands at about $1.5 billion. But most people tend to limit the rental industry to car/house rentals like Zoomcar or ZoloStay. But in reality, the rental industry consists of almost every kind of consumer product that one could imagine.
When you need a new king-sized bed but can’t afford a new one, RentoMojo or Furlenco offers you premium quality beds and furniture for rent.
Attending a social affair but can’t afford the right attire?
Login to thestyledoor.com and rent trending fashionable clothing at almost a tenth of the purchase price.
Then there are other major brands like Quikr, GrabOnRent, and RentSher which provide you a wide range of goods on rent. You can find everything from home appliances to electronics to gym equipment on rent here. So basically, the policy of rental companies is something like: If you can dream it, you can rent it !!!!
Rise Of Rental Consumer Goods – How It Came About
Technology has redefined the concepts of sharing and renting, as Netflix has done with videos, Uber with transportation, and Airbnb in hospitality.
A sizable sharing economy is opening up on apps and mobile sites that allow users to pick up a mind-boggling array of stuff on rent—designerwear, sofas, refrigerators and microwaves, beanbags, flat-screen TVs, and much more. The business is tantalizingly attractive and expected to scale to $45-48 billion, from less than a third of that, according to reports by industry lobby Assocham and consultancy firm Ernst & Young.
Millennials!!
The majority of consumers consists of the youth who are just out of college and into their first jobs — are driving the sharing economy. Renting for them makes more economic sense than buying.
How Rental Products Work – The Major Players & Their Initiatives
The sharing economy is expanding from cab rides, houses, movies to furniture, appliances, and more. The leasing economy solves the problem of need today.
Furlenco claims to have furnished more than 20,000 homes in the past two years. It has an ambitious goal to scale ten-fold by 2020, entering two lakh homes. Earlier, furniture was owned rather than rented as there was no option. Now, bachelors, who average 28 years of age and constitute 60% of Furlenco’s customers, have the choice of renting furniture via apps. Even newly-married couples, with a joint income of Rs 10 lakh a year, opt to rent furniture, which forms 80% of Furlenco’s business appliances account for the rest.
Another rising star in this sector is GrabOnRent – which offers a marketplace for renting projectors, lights, adventure gear, bikes, microwaves, refrigerators, and other appliances, GrabOnRent started in 2015. GrabOnRent claims to have 9,000 users who have leased out 15,000 products. To source products, GrabOnRent has 450 partners, including Godrej Appliances and Micromax. It offers free delivery and pick-up once the rental period is over and takes care of maintenance such as aircon servicing during the duration of the lease. To rent a washing machine costs Rs 649 a month, a refrigerator, Rs 649 per month and a TV, Rs 899.
In an overcrowded online fashion space, Stage3.co is trying to carve out a niche by renting. It is avoiding fast fashion to focus on designerwear and leveraging linkages with Bollywood stars and fashion designers to offer exclusive collections on lease for both men and women.Stage3 has a team of 30 in-house designers and also sources unused capacity from others. The bulk of the orders come from Mumbai and Delhi, with 60% of them being repeated. Designer outfit rentals can range between Rs 20,000 to Rs 3,000 for a night.
Currently serving 8 cities, Rentomojo offers rentals for furniture, motorbikes, and electronics. The website is regularly updated with new products and though the selection is limited, there are a lot of details available for each product to make an informed decision. Personal gadgets (phones, laptops) can be rented for up to 18 months while other electronic products, motorbikes, and furniture can be rented for up to 36 months. They also offer a ‘rent-to-own option — if you’ve been renting something for 12 months, you can buy and keep the product by paying the balance. Note that home appliances and furniture have to be rented for a minimum of 3 months.
Available in 5 cities, Rentickle offers rentals of DSLR cameras, home appliances, and furniture. Like Rentomojo, this one also offers a rental period of up to 36 months for home appliances and furniture. However, DSLRs can be rented for a maximum of 7 days only. The website supports user reviews — you can see reviews for each product before renting. The minimum rental period of home appliances and furniture is 1 month. Another useful feature of the service is that they offer the option of one free relocation of the item during the rental period.
India is being considered the fastest-growing consumer market in Asia. On a rough estimate based on multiple sources, the market for rental of furniture is seen at around $800-850 million. Rentals of electronic appliances are approximately a market of $500 million while that of bikes is $300 million.
But a growing market means the rental companies will have an increase in clientele. Like most internet-based companies, the rental companies also follow the same approach where the owner never meets the buyer. So in order to authenticate users, KYC collection and verification are a must. But traditional forms of KYC collection can be cumbersome and require a lot of manpower, time, and infrastructure.
With the advent of digital KYC, it is much easier to automate the KYC collection process. We at Signzy offerRealKYC. Using an AI-based approach, RealKYC not only allows users to upload their KYC information online but the system uses a host of microservices to verify the authenticity of the user and information uploaded.
The rental consumer goods economy has a huge scope in the upcoming years as the majority of the country belongs to the middle-income group with a high propensity to consume. With the public becoming more and more accustomed to internet-based products and services, the digitization of rental services has a promising future indeed.
E-KYC and VideoKYC – The New Era
Most rental companies operate via the Internet and the business model is set up in such a way that the tenant never has to meet the seller. Other than security issues, knowing the customer is important as most users pay online for their rentals. Rental/shared economy operates on a large customer base. To maintain customer data, KYC collection and verification are required.
With the new government regulations, e-KYC collection is now an easy option for rental companies. At Signzy, we offer a unique e-KYC solution known as RealKYC. The solution offers KYC collection as well as background verification and checks.
Advantages of RealKYC:
Secure System: A customer’s account information is secure because the entire process is online. Identity theft, fraud, loan scams, money laundering, the flow of black money, etc. are all minimized with RealKYC.
Efficient Communication: Effective information can be relayed in an efficient and timely manner. There is no need for constant back and forth. Most details are published automatically unlike manual KYC.
‘Free of Cost’ Process: RealKYC verification doesn’t charge any extra amount to the customer. A company or institution may need to pay automation costs of installing verification systems for the long run.
Faster processing: The RealKYC service is completely automated online. This means that KYC data can be transferred in real-time without the need for any manual intervention. The paper-based KYC process can take days up to weeks to get verified, but the eKYC process takes just a few minutes to verify and issue.
At Signzy, We have also introduced a new form of KYC verification called VideoKYC. This is a faster and more efficient form of KYC collection and verification. It conducts liveliness checks against the user as well as verifies the identification document against forgeries. The VideoKYC product has gained a lot of recognition and won several awards in recent months.
Advantages of using VideoKYC:
Higher Application Accuracy
Plug and Play solution, swift Go-To-Market
Comprehensive Training Program
Competitive Advantage through customer delight
100% compliant with latest RBI Mandate
Exponentially increase Scale of Operations
Reduced back office overheads (up to 70%)
Reduction in customer Drop-offs (up to 50%)
Platform Agnostic, support multiple communication channels
Conclusion
With the rapidly advancing technology, the terrain in the rental economy is changing. If companies in the sector decide to adapt to this and use the newer methods for processing and KYC, it will boost their efficiency.
Long-term reduction in costs and the increased pace of processing will attract more customers. This is primarily due to the easier KYC methods we can implement with the use of VideoKYC and other means. Thus, it is only sensible to use technology in taking hold of the future of the rental and shared economy in consumer goods.
About Signzy
Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.
Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.
Efficient and robust customer onboarding banking processes are a vital part of any bank’s compliance checks. Having an easy-to-use and seamless onboarding process allows financial institutions such as banks and NBFCs to keep up with the changing economic landscape. In addition, It leads to a solid ROI and creates a more enjoyable experience for the end customer.
Customers like to see digital experiences across critical services, especially in the finance industry. In the banking and financial services industry, customers now expect digital experiences across critical services. This is especially significant for client onboarding banking, which is the complete process through which an individual begin theirer journey as a customer or client of a bank or financial institution.
Learn about customer onboarding in the banking sector
Customer onboarding in banking refers to the steps taken by a bank to welcome a new business customer. To comply with KYC standards, this usually entails acquiring important information about the customer and conducting identity checks.
In banking and financial institutions, customer onboarding necessitates proactive communication and participation from several departments within the bank, including credit, operations, compliance, legal, front office, risk, and tax.
According to Forrester’s study, institutions with partial solutions with basic workflows require two to twelve weeks to enroll new clients. New technology has been introduced by many banks in the last few years to create greater efficiency and a better customer experience.
Key challenges in customer onboarding
An inefficient customer onboarding in the banking and financial services sector is resulting in hefty losses in terms of converting engaged customers. Between 2009 and mid-2016, banks were fined more than $200 billion for anti-money laundering violations, which had serious consequences for their onboarding operations. To combat this, banks have begun to tighten their Know-Your-Customer (KYC) and onboarding processes, resulting in a significant increase in onboarding costs. This has harmed the client acquisition process, generating unnecessary delays and long time-to-cash cycles, producing friction in a business customer’s day-to-day operations, and resulting in a significant loss of revenue.
In the rush to optimise their client onboarding banking journey to the point where it is an asset in the struggle to attract new customers and expand market share, banks and financial institutions are falling short. A recent report by HooYu found that:
86% of fintech intend to focus on the effectiveness of customer onboarding while only 43% would like to focus on driving further traffic to the top of the customer onboarding funnel with PPC advertising
Modern fintech companies are placing an increased emphasis on integrating onboarding technology providers and A/B testing compared to traditional financial services firms.
The single biggest customer onboarding drop-out comes when customers are asked to produce ID documentation. 50% of fintech believe this to be the area of significant customer abandonment.
Here are some of the primary difficulties that banks and their commercial customers experience as a result of the old onboarding process’ inefficiencies:
Customer Challenges
Complicated and time-consuming application process without adequate guidance and/or assistance.
Restricted communication and lack of transparency in the application process resulting in trust issues.
Wastage of time due to abrupt requests for documentation and duplicate/incomplete data entry in the paper-based process.
Excessive turn-around-time in customer onboarding impacting business transactions and cash flow.
Lack of personalization and proper assessment of the customer’s needs while guiding them through the products and services prompting them to switch banks.
Bank Challenges
Fast evolving regulatory requirements and stringent laws are resulting in complex customer onboarding in banking.
Inability to manage customer expectations across digital touchpoints during their various stages of the buying journey.
Longer onboarding time leads to lost cross-sell/up-sell opportunities with customers during their initial engagement period when their propensity to sign-up for additional services is high.
Missing single-view of the customer information impedes using existing customer data efficiently and any meaningful data analytics to give any conclusive customer insights.
Managing frustration due to delays, convoluted processes, and bureaucracy impacts the sales operations, which leads to up to 3/4th of customer onboarding requests not being able to reach fulfillment i.e. final stage of account opening.
Best practices for customer onboarding in banking
An Intuitive Mobile-First Solution
Customers are used to interacting with their phones and are disappointed when they don’t like the initial banking experiences. Almost half of the bank account applicants have abandoned the first few days of application for a bank account. The culprit is paperwork-laden processes that drive consumers to seek out digital-first alternatives.
Even though it is not as large a screen for a smartphone, the application experience should be enjoyable. Favorable mobile application experience limit the number of fields that are displayed on each page. Applications should be as easy to complete on mobile as on a desktop.
A customer can start and finish their banking experience with a simple text message on their mobile phone. Clicking on a link in the message will take the customer to a secured portal where they can do everything from interacting and completing steps to uploading supporting documents and identification.
When applying for a bank account, over half of clients claim they skipped the onboarding process. Cutting-edge banking technology allows customers to begin and finish their transactions with a simple text message from their mobile phone.
Eliminating Paperwork
Flexibility can be offered for how agreement details, legalese, and lengthy terms are presented and reviewed by consumers with the use of digital contract technologies. For example, It’s possible to present TILA disclosure tables in a variety of mobile-friendly formats, with the help of mobile-friendly document generation tools. If the only solution you can come up with is a static PDF that requires a microscope to read on mobile devices, then it should be done differently.
The new solutions enable banks to get legally binding customer consent from wherever they are. The customer can access and sign a secured document by clicking on the link in a text message. Banks can save money and time with the easy process because it eliminates cycle time and compliance exposure. The completion rates for customers are much higher when they use the smart eForms. It’s easy to complete eForms that are mobile-friendly, simplified in their presentation, and leverage autofill and CRM-prefill. Service reps can assist with the customer while also viewing the same form at the same time.
Without missing anything, the smart eForms ensure that the process is complete in a fast and accurate manner. Then eForms can be submitted from any device. In addition to this, terms and conditions can be presented in a format that is more user-friendly instead of having a service rep read them from a script.
Digital KYC
The benefits of digitising the ID collection process are several, the most important of which is that it lowers fraud. Financial associates aren’t always trained to recognise false or invalid identification cards. Financial organisations can confirm that IDs are authentic and relieve their workers of this strain by automating the ID validation process. Furthermore, digital ID collection eliminates the need to scan and file paper copies of identification. Instead, the information can be stored digitally in a more secure and accessible location. Digital ID collecting improves the experience for clients who sign up at a brick and mortar branch or in a remote scenario because it can be done without anyone leaving their seat.
A consumer can use a mobile phone to capture and send photos of their face and driver’s licence for approval with advanced ID verification and authentication systems that include completely automated KYC. Onboarding time is decreased, fraud risk is lowered, and even the most stringent ID and verification requirements are met promptly.
Automation and Real-Time Support
A digital customer onboarding banking process enables data to be pulled from Customer Relationship Management (CRM) systems like Salesforce or custom-built solutions to automatically populate contracts for additional services to expand the relationship. For customers, having contract fields already filled in is the ideal experience; it saves time and demonstrates the value of existing banking relationships. For banks, not only do completion rates improve, but re-keyed data errors are also reduced. This enables you to walk the customer through the process step by step, adapt to their needs and risk profiles, and skip questions based on past responses.
When the questioning is finished, the system can use the responses to build a signature-ready agreement for the customer. It’s a streamlined, mobile-friendly way for customers to navigate a difficult application procedure. For banks, it’s a method to boost completion rates, cut support expenses, and lower Not-In-Good-Order (NIGO) rates, all of which minimise the cost and time it takes for manual review and remediation.
Benefits of improving customer onboarding in banking
Consistency: Consistent design and a cohesive domain experience show customers that the application is being offered by someone that they know and can trust. While sharing personal and financial information during the customer onboarding banking process, they should feel secure and confident.
Ease of use: An intuitive application experience makes it easy for the customers to navigate or fill in their details. Seamless applications that allow customers to start and stop the process across platforms to further enhance the overall experience. (e.g. If they start filling out the application on a phone and finish it on a laptop, that’s how it will go.)
Clarity: The ability to connect with someone if the customer needs help is a hallmark of the best customer experiences. At the same time, the communication language used is clear and easy to understand, including error message explanations.
Efficiency: Customers can save time and avoid having to submit documents like account statements by connecting other accounts and pre-filling form blanks. These technologies improve efficiency and speed up the application process by removing needless manual labour.
Redefining customer experience & Future of customer onboarding
For the third year in a row, digital account opening (DAO) is the most popular banking technology. In 2020, almost 80% of all financial institutions will have introduced new DAO systems or modified current ones. – Forbes
Due to the COVID-19 pandemic, banks and financial institutions have started realizing the potential of digitization in the customer onboarding banking process. Digital identity solutions enable customers to safely access banking services and help banks offer customer-driven, mobile, and secured services. To provide a hassle-free UX while avoiding identity fraud, FIs need to focus on the following critical areas in their digital services.:
Provision of strong identity verification technologies and mechanisms
Provision of robust biometric verification
Provision of additional verification services for scoring, reputation, and risk management
Provision of a frictionless digital user experience for apps and services
Ensure that state-of-the-art security checks are performed in accordance with regulations.
When it comes to providing banking services, the better the customer service, the more customers will be willing to start a relationship with the financial institution. Emerging technologies being tested for client onboarding banking have a lot of promise in terms of speeding up the process, reducing duplicate data entry, and improving risk and compliance scoring accuracy.
About Signzy
Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.
Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.
Customer Onboarding is a crucial aspect of business development. But what executives miss out on is the fact that it can help their salesforce as well. 89% of customers reported that they would pay more for companies with better customer onboarding processes, according to a recent study by Forrester Research.
Highly engaged customers buy 86% more than unengaged customers. Onboarding is an effective way to attract user interest. Efficient customer onboarding paves ways to develop a loyal customer base. Innovative institutions find methods to improve their existing systems. This article takes a look at how Digital Onboarding affects customer engagement and how we can use it to drive sales.
Customer Onboarding and its effect on Sales
New customers need a stepwise process to guide them to set up and use your product or service. Customer onboarding resolves this need. It takes the customer from the initial sign-up to activation of the product and use. This helps in delivering value as early as possible to the customer. Good customer onboarding ensures setting the TAT(turn around time) to a minimum while covering all the important information useful for the customer.
As each enterprise has different modes of processing, there are different types of customer onboarding. They are the following:
On-Site Customer Onboarding is the traditional form of onboarding. The customer approaches a physical store,office, or branch with proof of identity and other documents. The process primarily involves physical entities with a high TAT. A study from HubSpot cites 63% of customers finding this type of onboarding very inconvenient.
Hybrid Customer Onboarding uses the digital documents companies offer to the customers. These forms are filled in online and then submitted physically to the concerned office or branch. Even though an improvement upon the traditional method of onboarding, it is still far from deeming a convenience for customers.
Digital Onboarding of the customers is a completely digitized process. Customers do not need to visit an office or branch. They can complete the process online from any place of their choice. This does not compromise the safety, guarantee, or credibility. The process is also called Online Onboarding or Remote Onboarding.
Sales are influenced by numerous factors, but the onboarding process profoundly affects sales. What most salesforces miss out on is that closing a sale does not necessarily guarantee a completed onboarding process. It certainly does not guarantee the retention of the customer. The processes and services like customer onboarding following a closed sale are equivalently relevant.
A convenient, swift, and reliable customer onboarding process provides the customer with a delightful experience. It increases the chances of further business and retention. If the customer onboarding ensures all important data points are covered for the customer, later processes can retrieve saved information making them faster and easier to navigate.
In essence, customer onboarding helps improve the quality of obtained customers. It builds trust and preference among the customers. With almost all institutions digitizing their onboarding processes, the competition to improve customer onboarding is cutthroat. Improving even the slightest details in the onboarding process brings forth beneficial outcomes.
Challenges of Digital Onboarding
With the advancements in technology, it is clear that digital onboarding trumps conventional modes of onboarding. It is faster and more secure than its predecessor processes. Yet even digital onboarding has challenges to address and resolve. Some of them include:
The transition from physical to digital platforms
Minimizing friction in the process
Changes in Regulations
Avoiding technological stagnation
Data Management
Newer customers from older generations find it difficult to understand and process digital onboarding. The transition from physical onboarding to remote and online onboarding is difficult for individuals unfamiliar with newer technology. This demands attention from the onboarding platform.
In the age of information, most people will not wait for delays in processes. If the customers face friction in the onboarding process, they might abandon the journey. Drop-off rates can be as high as 75% during onboarding. It might even end up in customers opting for services from other providers. A churn rate of 5% is expected usually. As much automated as the process may be, there is always a chance of a need for manual intervention. The platform must keep this intervention to a minimum. These hurdles need resolution in the digital onboarding process.
The advancing technology demands that the installed process be updated. We can not expect to install an onboarding process and let it be. It requires constant updates and additional plug-ins to improve. This coupled with the frequent changes in regulatory guidelines ensures that we must avoid technological stagnation.
Many institutions incorporate KYC and AML processes into the journey. This makes it easier for the customer as the whole process will cover multiple requirements. The data is obtained more readily. The obtained data should be stored with high-security measures. This is to avoid all forms of fraud and scams.
Optimized Digital Onboarding- The Boon to Boost Quality Sales
Having a digital onboarding solution is not enough in the prevalent competitive ecosystems. Institutions need to up their games by giving customers the most seamless and fast onboarding journey possible. This is not possible without taking into account the areas of improvement a generic digital onboarding solution has.
Onboarding is not a hurdle for the business, but rather a kit of tools to improve the number of quality sales. If optimized aptly, digital onboarding will increase customer retention and in the long run, overall sales. This is possible only if certain factors are addressed and utilized. They include:
TAT- Turn Around Time
Processing Friction
Regulation Compliance
Automation Quality
Technological Adaptability
Security and Risk Management
A reduced TAT and swift processing encourage customers to begin the onboarding journey. It decreases the activation energy for them. Indeed, what once used to take days or weeks to complete with manual intervention is now done in hours or minutes with digital onboarding. But, even this is further reduced with optimization. Schmick APIs and resources do not just look good but do this. TAT is reduced with better user experience initiatives and quality technology.
User experience and interface design have advanced to an immense degree. This makes the processing friction during the onboarding journey minimal. Unnecessary and cumbersome steps in the process are eliminated without compromising any compliance guidelines. All regulatory compliance measures are updated and integrated into the system. Frequent changes in guidelines are not a problem.
Quality automation and adaptable technology ensure no unprecedented roadblocks. Good technology is good when it goes uninterrupted. With newer machine learning(ML) methods and artificial intelligence(AI), decision-making and rule engines are advanced. They help prioritize necessities and eliminate unnecessary steps.
To prevent fraudulent activities, efficient safety measures are installed. Security becomes a prime concern when the risk is high. Thus, good onboarding resources implement proper risk analysis and management. As all this will be monitored by authorities, compliance is most certainly uncompromised.
These factors drive the customer to establish a healthy and dependable relationship with the enterprise. It helps in customer retention and even newer customer acquisition. Sales increase in numbers when the effort to be invested is minimal. 86% of customers prefer a good onboarding experience over a detailed education on services after they have bought it. 63% of customers demand quality support post-sale and during onboarding. It is the reason they would even consider making the decision. It is also interesting to note that it costs between 5 to 2 times more to acquire a new customer when compared to retaining one.
Hence, a good sale does depend on what comes after. The cretaceous strategies of sales are behind. Customers are aware and demand good products and services with efficient support. A good customer onboarding process not only makes the customer feel good but independent.
Benefits of Optimized Digital Onboarding
Some of the major benefits of Optimized Digital Onboarding include:
Reduced TAT- Processing time is considerably reduced
Minimal Processing Friction- With an emphasis on details, processing friction is minimized by eliminating unnecessary steps and procedures.
Improved Regulation Compliance- frequently changing regulatory guidelines are no longer a concern. Technology-based compliance is also updated and effective.
Quality Automation – State-of-the-art AI with efficient digitization helps improve the overall process.
Adapting Technology- All backend features are updated regularly to not fall behind in progress.
Fortified Data Security- Customer data is highly secure with quality safety protocols and data management. Sufficient focus is given for fortification.
Risk Management- All customer-based risk is managed with priority categorization.
How Can Signzy Help?
It is only sensible to conclude that mere digital onboarding is insufficient to meet today’s customer demands. More optimized processing breeds better sales results and overall experience. But then the major question follows, how do we select the right service provider for Digital onboarding and other processing that can help your business?
We at Signzy, can certainly help you improve your business. Being one of the pioneers in financial and regulatory technologies, Signzy provides you with resources that make processes easier. Our Digital Onboarding solution stays ahead of the curve with prime technology while maintaining a focus on sales boosts too. With an impressive quiver of products and services, we provide you with extremely customizable solutions. These include our suite with 240+ APIs and AI-based resources.
About Signzy
Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.
Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.
With an expected growth projection of nearly USD 24 billion for the blockchain market by 2023, the industry is all set to an exponential start this decade. The terms blockchain and cryptocurrency have had a symbiotic evolution. This has rendered them nearly interchangeable in usage. Nonetheless, we must understand what exactly cryptocurrencies are to understand it’s challenging.
Cryptocurrencies are digital currencies with purchasing and selling value. They use an online ledger and cryptography for secure transactions. With over 10,000 types, they are proliferating in many exchanges and have an estimated total value of more than USD 1.7 trillion as of June 2021.
They use blockchain technology eponymously. This makes them the most modern embodiment of economic advancement. Considering the potential cryptocurrencies have in terraforming the global economy, understanding the associated challenges and improving upon them is essential.
Challenges In The World of Cryptocurrencies
There is an increasing preference for cryptocurrencies in global transactions. The primary reason is the minimal involvement of bureaucracy. A more decentralized approach to monetary interactions also helps. But this can be useful as well as risky. The major challenges are faced during onboarding and include:
Financial Fraud
Money Laundering
Terrorist Funding
Government Regulations
Fraud, Laundering, and Terrorist Funding
Cryptocurrencies are used worldwide. Their regulations are different and oftentimes vague than state-issued currencies. Fraudsters are keen on utilizing this as a loophole. It helps them conduct illegal and fraudulent transactions. Cryptocurrencies can be used for money laundering and in some severe cases even terrorist funding. This is a dangerous aspect and regulating such activities requires a careful approach.
Fraudsters may use false identities, stolen identities, or even shell entities. They transfer money in the form of cryptocurrencies from one international government jurisdiction to another. If not regulated, the entire industry can become a plethora of financial fraud and danger.
Government Regulations
To prevent fraud, cryptocurrencies are traded with stringent guidelines from many governments and authorities. These strict restrictions can severely impede the ease and speed of onboarding customers. It will also increase the minimum activation requirement alienating potential customers and traders.
Cryptocurrency Exchanges require government-issued identification verification along with good financial credibility for their customers. This makes the initial onboarding process heavily cumbersome. If better methods are not explored, the result would be wasted potential clients for the Exchanges.
Verification and KYC
Novel methods are developed to combat financial fraud in cryptocurrency markets. These methods can reduce any money laundering activities and prevent fraudsters from misusing the resources. Brokers consider ways to reduce the risk involved in onboarding a new customer or trader. Methods to verify an individual while avoiding any financial fraud is given below:
KYC- Know Your Customer
AML- Anti Money Laundering Measures
KYC
KYC helps establish credibility for the customer. This is done by checking their valid identity proofs and other background data. With advancing technology, it is mostly digital. For an industry using blockchain technology, it is only sensible to have efficient digitization of this entire process. Quality digital KYC helps stop all fraudulent or fake individuals from transacting. Thus, the danger is averted and risk is reduced.
AML Measures
Government agencies place Anti-Money Laundering Measures to prevent any form of financial fraud. Many countries might not have specific guidelines for cryptocurrency regulation. But many a time they fall under stringent AML measures. AML is mandatory to prevent any form of massive money laundering. If not complied properly, today’s resources can be used even for terrorist financing. As a matter of fact, measures for CFT-combatting finance of terrorism is a priority criterion for many institutions.
How Signzy Can Help You with Cryptocurrencies Transactions?
The advent of technology is making cryptocurrencies create a revolution in the industry. This makes it all the more needed to identify and verify the participants in the industry. Procedures like KYC and AML will only be effective if the appropriate guidelines are followed. Along with which safety measures need to be imposed. Nations are heading forward with this in mind.
But the catch is that, how do you fulfill all the criteria of regulations and safety while maintaining an easy journey for each customer? This is what we excel at.
We at Signzy give you customizable APIs and other resources that help you conduct safe and compliant KYC, AML, and all other requirements you have. We will help you onboard customers and traders of cryptocurrencies onto your platforms with ease and safety. Our seamless UI will make the journey all the more engaging. With the numerous products, services, and resources in our arsenal, we can make your enterprise better.
About Signzy
Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.
Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.
