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It would be naive to think that the world of corporate onboarding wouldn't benefit from a speedier process. Personal onboarding is lightyears ahead in comparison, and corporate clients are well aware of the discrepancies. There is a reluctance to change what isn't broken, but the truth is traditional corporate onboarding isn't simply defective, but totally disconnected. Obviously, corporate onboarding is far more nuanced than personal onboarding, but that doesn't mean it can't handle the digital touch. Research shows that the global commercial and business banking market has lost $3.3 trillion because of abandoned applications during onboarding.
"It's essential for banks to keep pace with market-moving technologies and regulations, and support new business models, including digital client onboarding to meet the expectations of customers," says Sidhartha Dash, Research Director, Chartis Research.
Traditional onboarding methods sap resources, leave room for errors, and is painfully slow. Every day your client is sat waiting; you lose money as they can't engage with your services. In comparison, personal onboarding is relatively easy and doesn't lead to huge losses should the client drop out. On the other hand, having a corporate client bail is a far more considerable loss.
It's not just clients that suffer from these delays; organizations suffer too. In a 2019 survey by Thomson Reuters on AML Insights, 47% of respondents used manual document scanning during corporate client onboarding. The burden of compliance does fall on financial institutions, thus having in-depth knowledge of your corporate clientele (KYB) and ensuring all regulations are met is no small obligation. With the sheer amount of paperwork it takes to onboard a business client, simply organizing documents eats up hours in a week.
The first sign of friction often rears its ugly head first at this stage of the process. Should your onboarding process lack clarity, clients may not provide the full scope of paperwork, resulting in an often lengthy back and forth. A lack of automation means paperwork stacks up fast. When you have a paper-intensive office, you are prone to mishandling, misplacement, and lack of security for sensitive information.
Compounding this issue is how your company may be structured. When departments are siloed and there is no fluid way to share information, this can ground the process to a halt. It is said on average, each customer goes through 8 different interactions during the onboarding process. Everybody suffers when there is a lack of transparency and alignment. According to a survey by Fenergo, 81% of executives at banks believe poor data management lengthens onboarding and negatively affects the customer experience. This report also states that 1 out of 3 financial institutions have lost customers due to inefficient or slow onboarding.
● Customers not only expect but actively seek out digitally savvy companies when it comes to banking. They will choose digitally native platforms over traditional offerings.
● The entire onboarding process should unfold online. Gone are the days of in-person visits, manual data entry, or physical documentation.
● The process shouldn't take longer than a few days, and at the very least, the client should have some visibility regarding how long the process will take.
● It is essential to be clear and concise, allowing the process to feel effortless and frictionless. There is a level of stress associated with being onboarded; clients enter the process fearing it will be an inconvenience. According to Forrester, 66% of adults believe valuing their time is the most important thing a company can do to provide an excellent online customer experience.
To eliminate the pain points of traditional corporate onboarding, you must look at the whole ecosystem. By improving your customer service experience, you begin to improve your internal operations. The two must work in conjunction, or they don't work at all.
Start by bringing your corporate onboarding process up to speed with the digital age and implement up-to-date KYB flows. As different parts of the process call for various degrees of complexity, even by automating partially, you begin to iron out the kinks. AI, automation, and data analysis all unlock valuable assets that move your services forward.
Then begin to eliminate internal silos that create pitfalls in communication. Having a designated system that aligns departments allows for greater transparency and accountability. It is counterintuitive to have departments working towards the same goal yet have little visibility of what the other is doing. This is particularly important when it comes to document sharing, verification, and due diligence processes.
Lastly, when tackling the perplexing and ever-changing world of compliance, let HelloFlow do the heavy lifting. In fact, HelloFlow can help you with the digitalization of the entire onboarding process! Our no-code solution means you can drag and drop to build a process that automates applicant information and verification, business entity information, AML checks, individual e-KYB, risk assessment, document upload, and compliance. An entire system, customized by you, without writing a single line of code. Book a 1:1 demo with us tomorrow and start your digital onboarding journey.