With fast digitization that blurs the boundaries between the physical, digital, and biological worlds, companies focus on connecting with both employees and customers. And with the prevailing time worldwide, there is a significant push to improve the existing digital onboarding.
Such a move allows a company to boost its sales figures and public image while the customers receive complete service satisfaction and the employees feel less burdened about their professional lives.
However, it’s important to note that the concept of digital onboarding extends to establishing new business partnerships as well. In both scenarios, a specific level of due diligence is essential, whether it involves confirming the identity of your customer (KYC) or understanding the details of your business partner (KYB).
To really get the hang of it and understand how digital onboarding works, keep on reading.
What is Digital Onboarding?
Digital onboarding is an online process to bring in new customers. During the procedure, a person registers with a company or government service to access its products and services. They will provide their ID, and, if required, biometric information like a face scan or fingerprint. With a digital onboarding process, a company can easily and securely identify a person.
Before remote onboarding was a universal thing, people would often provide their data either in person or through the mail. The whole process would be lengthy and expensive. With digitization becoming a prime factor for nearly all private and public companies, they all need a reliable and secure digital onboarding channel. The demand is specifically high during the COVID-19 pandemic, where social interaction is discouraged.
The customer onboarding process is closely associated with Know Your Customer (KYC) or Know Your Client. The terms are prevalent in finance, banks, insurance, and related sectors. KYC and digital onboarding, used in other industries, are sometimes used synonymously. But KYC is a critical customer identification tool that companies use for their digital customer onboarding process.
The Main Types of the Onboarding Process
You may be familiar with the comparison between traditional and digital onboarding, but it’s worth noting that these are not the only choices available. Naturally, different business models demand distinct approaches, but the critical factor is consistently evaluating the trade-off between ease of use, security, and a user-centered strategy.
The main types of the onboarding process are:
The traditional onboarding process — the individual visits the company office to provide their data as proof of identification and biometrics.
The companies provide electronic documents to the new customers to fill at their homes. But they have to visit the company office to submit them. This strikes a good balance by giving customers flexibility in their initial input while still allowing you to make acceptance or rejection decisions in person.
The currently popular onboarding process is also known as online or remote onboarding. With complete digitization, individuals can stay at their home or office to complete the process with the same speed, security, and guarantee.
How Does the Digital Onboarding Process Work?
Digital onboarding is an entirely online method of acquiring customers. Users can easily register for your service using their device, entering their information step by step. This onboarding process is not only user-friendly but also ensures compliance with KYC and CDD standards.
Digital onboarding is important for two key reasons:
- It involves the online company platform that has been either developed in-house or outsourced. The platform allows the company to ensure compliance and convert the potential new lead into a loyal customer.
- The customer onboarding process is also the stage when the company starts to build a relationship with the customer. Hence, it is vital for the company to make a good impression on the customer. And the customer can decide and leave the onboarding process because they found it too complicated or lengthy.
The 4 Key Benefits of Digital Onboarding
Digitization is the most direct way financial sectors and other industries can improve their customer onboarding. With digital onboarding, you get speed, fewer errors, compliance management, reduced manual work, and improved customer satisfaction. Here are some of the benefits of digital onboarding:
1. A new customer once the process is complete
The most significant benefit is acquiring a new customer after putting in all that effort. The company can now offer its services and products to its new customers.
2. Client-centric approach
The only way a business can grow is to keep its clients/customers at the center stage. When you understand your customer’s requirements and design a workflow around their needs, you improve customer experience.
With online onboarding, the whole process is much more straightforward and easy to understand. When the company transitions from paper to digital modes, it brings better data arrangements, user-friendliness, and data signatures.
4. Faster process
When the customer onboarding is rapid, the clients get a quicker response, feedback, and confirmation. Along with an immediate process, it also follows all the steps and secure data verification.
Why is Identity Verification Vital for Digital Onboarding?
With the advent of digital onboarding, there was a pressing need to make online transactions and interactions more secure and safer. We are working tirelessly to create better digital identity verification solutions to fight online fraud and identity crimes. With current efforts, such online identity verification solutions have considerably made online businesses trustworthy with a layer of security and trust.
Yet, it shows much to do in the digital onboarding process when one looks into the global fraud figures. Today, account-related frauds constitute a part of the most critical threats businesses worldwide face. With more robust digital identity verification tools, companies can prevent fraud while enhancing the overall customer onboarding experience.
We offer identity verification solutions for the digital onboarding process that accept all primary ID documents worldwide. That’s why our team can define their criteria and adopt the ID verification solution to get more clients while maintaining high operation standards and keeping everything secure.