Traditional Vs. Digital Onboarding in Banking

Onboarding is the process new clients go through to set up their accounts and start using products and services. Traditional client onboarding typically involves collecting clients’ data and documents and then inputting the information into various systems manually. 

But the traditional way isn’t efficient anymore, especially in the banking sector. Banks must realise the changing needs of their clients in the online world and adopt digital onboarding. 

Does it make a big difference to replace conventional paper processes with digital onboarding solutions? Yes! The difference is clear, and the benefits are greater. A comparison between traditional and digital onboarding in banking will tell.

What’s the Difference Between Traditional Digital Onboarding in Banking?

There are many aspects to compare when choosing between traditional and digital client onboarding, including:

The Type of Interaction

Digital or face-to-face interactions? With traditional onboarding, clients must find the time to visit the bank’s physical branch. It requires scheduling and even waiting if the employees are occupied.   

Digital onboarding, on the other hand, is fast and hassle-free; no need for clients to waste time commuting and wait for an employee to meet their needs. The entire onboarding process is carried out digitally.

Identity Verification

Employees are the ones responsible for identity verification in the traditional verification process. They need to verify several ID documents against a number of databases manually. How time-consuming is that? 

With digital onboarding solutions, banks allow their clients to scan their IDs, authenticate their biometrics and take selfies for liveness detection. Their documents are cross-checked against internal and external databases to verify their identity, and their selfies are compared to photos on their ID to prevent spoofing. All done within minutes!

Accuracy

As mentioned above, traditional onboarding requires employees to check and input the data manually. But what if the employee was overwhelmed and distracted? Wouldn’t that affect the process’ accuracy and increase the chances of errors? Missing a number or letter will obstruct the whole process, resulting in longer wait times and more frustration. 

When using digital onboarding in banking, document processing is automated, leaving no space for errors. 

The Benefits of Digital Client Onboarding 

The difference between traditional and digital onboarding in banking is crystal clear. The latter grants better results in terms of efficiency, accuracy and client satisfaction. Here are the benefits of digital client onboarding in banking:

Saving Time and Boosting Productivity

In the modern business world, digital client onboarding is essential. By moving the onboarding process online, banks can save time and money while streamlining the process for both new clients and staff. 

By embracing digital onboarding solutions, clients are spared the time-consuming visit to start their relationship with the bank and answering repetitive questions over and over again. In addition, digital onboarding improves the workflow and gives employees the opportunity to work on more critical tasks.

Reaching New Markets

Clients can onboard themselves digitally anytime and anywhere in the world, which enables banks to expand their reach and introduce their services to new markets that were previously difficult to target.

Facilitating Compliance

Digital onboarding solutions integrate AML and KYC compliance measures, which will help banks avoid any violations and penalties. 

Enhancing Security 

From document scanning to biometrics authentication and liveness detection; digital client onboarding provides many tools that enable banks to enhance security, check for identities effortlessly and protect their clients against fraudulent acts.

Reducing Cost

Digital client onboarding reduces the cost of managing physical branches and the expenses banks bear to print forms and process them manually. By reducing manual tasks, automating processes, and collecting data in real-time, digital client onboarding helps reduce costs associated with paper-based onboarding, allowing businesses to focus their resources on other areas.

Accelerating Client Acquisition Rates

Living in this technology-ruled time, clients expect their requirements to be met online without any effort. Combining high-quality services with 24/7, fast and secure onboarding solutions that provide convenience will rank a bank on top every time. And let’s not forget about word of mouth; clients who experience a pleasant and seamless onboarding are likely to recommend their bank to others.  

An Elevated Customer Experience

Perhaps most importantly, digital client onboarding provides a client-centred banking experience, guaranteeing higher satisfaction levels. Clients can complete the onboarding process at their own pace and from the comfort of their own homes. Such a positive start lays the foundations for trust and loyalty, enhancing the brand image and eventually increasing revenues.  

EDC’s Cutting-edge Digital Onboarding Solution

Helps banks verify clients remotely? Yes! Optimises the ID authentication process and fulfils KYC requirements? Yes! Accelerates onboarding rates while cutting costs? Yes! Guarantees seamless onboarding and an enhanced customer experience? Yes!

Our digital onboarding solution checks all the boxes and allows banks to reach new heights. It has endless capabilities, including chief risk officer (CRO) profile management, geolocation targeting, OCR for IDs and passports, facial recognition, e-signatures and risk screening with AML/CFT databases. 

Request a demo to learn more about our digital onboarding solution.