A superb onboarding experience makes a huge impression. On the other hand, I’ve seen and experienced some really bad ones, and they leave an impression, too. Which type do you want to offer your clients?
You wouldn’t show up for a first date with your hair unbrushed and reeking of gin – well most of you – and you shouldn’t subject your clients to that disheveled mess in their banking. It’s not just your branches that must by tidy and streamlined, but more importantly your digital onboarding. Think about some of the apps you’ve downloaded for which you had to open an account. Many of them have payment information saved within them, but you probably don’t remember much about the experience because it was relatively swift and painless.
It’s not exactly the same for financial institutions, but you get the point. The technology exists to verify government-issued identification to get customers positively identified and signed on faster. I acknowledge compliance can hold you back, but that doesn’t mean we stop pushing the regulators to get with the times, too!
If onboarding is your jam, click here for another piece I’ve written on onboarding’s relationship to customer loyalty.
Check out what Atom Bank is doing in the UK. Everything is personalized during and after onboarding, right down to the logo they see. It’s an intriguing concept, and a company you’ll want to watch.
In simple terms, onboarding can be broken down to:
To provide the experience your customer is seeking, The Financial Brand advises, “Perfecting the onboarding experience requires more than just rethinking your business processes. In order to succeed, your underlying technology must support continued innovation of front, middle and back office processes.” For even the top institutions, the online account opening attrition rate is around 30%, so imagine (or maybe you already know) what the attrition rate is at an institution that has fallen behind on the path to digitization.
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When your financial institution’s digital onboarding is in order, customers are happier. Studies have found that if customers are going to leave you, they’ll to do it early on. According to The Financial Brand, 43% of those who were not happy with their account opening experience say they will “definitely or probably” leave. When you’ve just spent $400 to $600 to acquire that customer, according to Vetter’s own research, you’re throwing money out the window. Clear out as many bottlenecks as you can, which was the topic of our post, Are Legacy Financial Institutions Capable of Innovating?, to create a cleaner digital onboarding experience.
When you’re on your digital game and newly onboarded customers have facetime with you, it’s not just to exchange mind-numbingly tedious paperwork once again. That will leave a bad taste in their mouth. Instead, you can have a conversation about how you can help your newfound client to gain share of mind and share of wallet. Your community bank or credit union can offer big-bank technology with your downhome feel. Show them what makes your financial institution special and why they should choose to do business with you.
Excellent digital onboarding saves your bank time and money. The quicker you can get customers onboarded, the less likely they are to abandon the process and the sooner you can do business with them, while also decreasing the human resources required. Digital automation is the key. Vetter can help!