Online customer onboarding is the process of acquiring new customers using a remote digital interface. The traditional method of onboarding a new customer starts when a prospect physically presents proof of self-identification at a company managed store or branch office.
Sometimes application documents are digitally emailed or physically mailed to the prospect. In either case, the prospect must present the documents physically to a company employee at a designated physical location for identification purposes.
Online customer onboarding provides a completely remote and digitized process which does not make it necessary for the prospective customer to appear at a physical location. It is very convenient and cost effective to both the prospect and the company.
The most important success factor with any online client onboarding process is correct identification of a customer. Are prospective customers who they say they are? Remote customer identification is a big challenge for any company that is contemplating the implementation of online client onboarding.
Companies which do not need customers to move to a physical location to access products and services are well suited to immediately take advantage of this innovative technology.
Banks and other financial institutions are a good example. Digital bank onboarding which allows a prospective customer to open a bank account remotely and be included in the bank’s customer database is a good example of online customer onboarding.
Technological advances in artificial intelligence and machine learning allow real-time video verification. In other cases, the customer takes a selfie while holding a government issued identification card. This provides proof of document possession by simultaneously capturing the customer’s face and the photograph on the identification card.
Typically in the case of a bank, the digital client onboarding software integrates with the bank's digital banking platform and core banking software. This method of customer identification is user friendly and makes a tedious and time-consuming process easy and fluid. It also incorporates strict video and software security standards.
Companies which implement remote client onboarding as part of their customer acquisition process report an exponential increase in conversion rate. Below are a few advantages of a completely digital client onboarding system:
Digital onboarding increases efficiency and client satisfaction. It also saves money and deepens company-client relationships. The effort and investment required to have a fully digital onboarding system is definitely worth it.
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