According to a survey, due to the impact of the rupee depreciation and lower overall expenditure, financial institutions are attempting to optimise their finances as much as possible, and 83% of banks globally are focused their efforts on cost optimization.
What is Digital Onboarding?
Digital onboarding is one of the sectors where financial institutions are concentrating their efforts not only to streamline the process of customer onboarding but also to produce savings in an increasingly competitive environment as a result of the deployment of digital solutions.
This has resulted in a surge in the number of enterprises specialised in technical solutions to assist financial institutions in complying with stringent business laws.
With a burgeoning fintech industry biting at conventional banking’s heels, retaining and, especially, gaining new clients has become tough, as creating long-term relationships is difficult with such a diverse range of options.
Financial institutions are thought to take an average of 34 weeks to complete institutional customer onboarding using manual processes, as opposed to six weeks when using customer lifecycle management solutions, which also have a 20% increase in operational efficiency and productivity when compared to market alternatives.
In terms of pricing, it is projected that onboarding a new institutional client can cost up to US$25,000, plus the administrative cost of identification verification.
According to a consultancy business, a typical bank must invest US$150 to onboard a new individual client, but a fintech requires just US$30 due to a considerably more effective procedure with digital onboarding.
What is digital onboarding for new employees?
Employee onboarding has also witnessed some significant improvements in how they are onboarded remotely. Elevating the employee experience is more important than ever in assisting new workers in becoming comfortable and effective in their new responsibilities.
Employee onboarding, when done effectively, prepares recruits for future success.
Companies are turning to new applications and technologies in the digital era to convert their old onboarding procedures into more engaging digital employee experiences.
Employers may use a digital onboarding process to expedite their onboarding process and give a more flexible, individualised approach while saving time and costs. Employee onboarding too has now seen some vital changes in the way they are onboarded remotely. To help new hires become comfortable and productive in their new roles, elevating the employee experience is crucial now more than ever.
Employee onboarding helps easily verify documents and comply with PEP regulations.
In the digital era, businesses are using new applications and technologies to revamp their antiquated onboarding procedures into more interesting online employee journeys. With Digital Onboarding Solutions, the speed, as well as convenience of onboarding, is elevated using online modes of verification.
Employers may save time and money by streamlining their onboarding procedures and offering a more flexible, individualised approach with a digital onboarding process with variable verification thresholds.
The Key Benefits of Digital Onboarding over Traditional Onboarding
Seeking Efficiency with Digital Onboarding
The absence of digitalization of screening procedures increases these expenses in many businesses, which is why specialist firms try to save money by using identity verification solutions in digital onboarding.
In comparison to the significant prices that enterprises pay today for traditional techniques, biometric solutions produce time and money savings by minimising the processes to complete client onboarding through remote and 100% digital solutions.
Individual customers, for example, can open a savings account in as little as 15 minutes on average, which can be reduced to an average of 10 seconds with IDcentral’s solution owing to the use of digital tools for account opening as well as secure client onboarding and identity verification.
IDcentral’s Customer onboarding procedures for institutional clients can take seconds or minutes rather than days or weeks. These dynamic workflow procedures may include UBO (ultimate beneficial ownership) identity verification, KYC and AML CTF checks, as well as the submission of Identity papers with Liveness Detection or Video KYC.
An ineffective application procedure may have an influence on operational costs, sales, and—more importantly—the return on investment versus significant marketing expenditure, claims a new report. When client onboarding is taken into account, the stakes are raised since once customers find the perfect product, experience, and pricing, they will stop looking.
In a world that moves at the breakneck speed of digitalization, ten minutes might be the difference between onboarding a new client and increasing drop-out rates in a company.
Indeed, according to a study paper, 63% of European clients abandoned a banking application last year as more users migrated to digital channels and their needs for a fast, safe, and flawless procedure rose.
This figure is substantially higher than in 2016, when it reached 40% of withdrawals, 53% in 2018, and 38% in 2019, indicating that as the usage of techno-financial solutions advances, so do consumers’ expectations.
Complete, No-Hassle Solutions
Customers, according to IDcentral’s experience, want end-to-end solutions that can guarantee data safety in near real-time, using artificial intelligence-based voice or face recognition techniques, while also shortening the process to just a few steps.
Data also shows that competition is growing tougher, and customers are paying increased attention to the value of their time. In this regard, it is estimated that 63% of all consumers who begin a financial product application do not finish it.
Since identity verification is a crucial step in the onboarding process and may have a significant impact on abandonment and decision time, it is important to strike a balance between customer convenience and security checks.
These solutions must become bridges that support processes rather than extra hurdles to completion, therefore it is critical that, in addition to these tools, analytics be used to develop efficiencies based on user experience and behaviour while winning user confidence.
Digital Onboarding vs Traditional Onboarding in Employee Onboarding
Traditional Onboarding: Additional expenses include paperwork and trained staff to verify identity and documents.
Digital Onboarding: With digital onboarding, you may save money through digital ID verification and OCR document verification.
Traditional Onboarding: Since all documents are tangible files, onboarding is difficult and might have to go through several data checkpoints.
Digital Onboarding: Data is kept secure in the cloud and compliance checks for AML-KYC-CFT are done on a global scale with onboarding software.
Traditional Onboarding: Employees must submit support tickets for any problems they encounter with an application, programme, or procedure.
Digital Onboarding: Employees may get help 24 hours a day, seven days a week using digital onboarding solutions.
Traditional Onboarding: Traditional onboarding processes rely on documents and in-person interactions, which do not deliver compelling employee experiences.
Digital Onboarding: To improve onboarding accuracy and efficiency, digital onboarding offers conveniently accessible mobile onboarding, intelligent face match technology, and OCR Document to decrease failures and redoes.
Traditional Onboarding: Physical onboarding procedures are inconvenient for firms that use digital apps.
Digital Onboarding: Digital onboarding is useful for both remote and in-person client verification, as well as rapid compliance checks.
Important Benefits of Digital Onboarding for Employee Onboarding
Here are a few advantages of digital onboarding to demonstrate why it is more successful than traditional, in-person onboarding.
Traditional onboarding takes time and includes a significant amount of manual documentation, which is inconvenient for both the new worker and the HR team.
Digital onboarding, on the other hand, is quicker and more efficient because everything is saved in a single database. Having all onboarding documents and information at your fingertips saves HR managers from sorting through mountains of paperwork and enables document verification, a tool that assists recruits to upload and verify papers online with leisure.
By putting all new hires through the same onboarding processes and materials, organisations can create a consistent brand experience for them. Providing a uniform experience for each recruit ensures that everyone is on the same page from the start.
Onboarding new staff both conventionally and digitally costs the organisation time and resources. Traditional onboarding, on the other hand, includes paperwork and printing expenditures, which digital onboarding simply substitutes without sacrificing speed. Furthermore, digital onboarding necessitates less one-on-one in-person training, saving money on trainer employment.
Increases staff engagement
Through Digital Onboarding APIs, integration of the digital onboarding process can be done along with the rest of the employee onboarding requirements like video onboarding, interactive training, individualized training content, and other features. Using such an effective onboarding method increases engagement, enhances the employee experience, and aids in the rapid and efficient integration of new members into the team.
Digitally storing and displaying information ensures accuracy. Materials are stored centrally in document database, where they can be checked and updated at any time. Digital onboarding guarantees that information is always consistent, up-to-date, and correct, whether there is a small team of 20 or a worldwide staff of 2000.
Continuous, round-the-clock assistance
Even after extensive onboarding workshops on business platforms with recruits, workers will still have concerns about how to navigate or accomplish tasks. Employee assistance is provided through digital onboarding software instead of employees raising support requests and waiting for a resolution. These easy fixes save recruits a lot of time and allow them to focus on learning in the flow of work to become more productive sooner.
IDcentral’s flexible Digital Onboarding Solution comes integrated with the latest AI technology for accurate ID verification, precise Liveness Detection, and speedy Identity Proofing. Enable Remote-Digital Onboarding capabilities with our API based solutions which have variable levels of Identity proofing procedures according to your customer base and compliance requirements.
Try IDcentral’s Digital Onboarding solution with AI based Document Verification
Sumanth Kumar is a Marketing Associate at IDcentral (A Subex Company). With hands-on experience with all of IDcentral’s KYC and Onboarding Technology, he loves to create indispensable digital content about the trends in User Onboarding across multiple industries.