It's plain to see that the manual onboarding process is a real drag, every stage from KYC or KYB to AML and compliance is an uphill battle. Relying on such antiquated techniques most definitely holds your business back in more ways than one. You don't have to look too hard to see that manual handling costs more money than digital solutions. Dollars aside, it's a parasite that leeches on employee's time, their efficiency and eventually affects customer satisfaction rates.
Inevitably with any human process, people will make mistakes. Bad manual handling at its core is slow and annoying, but at its worst, it will cost you a valuable client and may incur hefty fines if done improperly. Seemingly little things like lack of experience, distractions or fatigue can result in forgotten tasks, documents ending up in the wrong place or service errors. These issues may seem small at first, but continual lapses in judgement like these can cause businesses to lose millions every year. Preventing these issues from ever happening is paramount, which is why HelloFlow excels with automation, using data to overhaul the traditional onboarding process.
The Cost of Human Error
Small mistakes can run amok and grow exponentially. Not convinced? In one study, it was found that 63% of consumers in Europe have abandoned financial applications in the past year. Over a quarter of consumers felt that the onboarding process took longer than they expected. This is likely due to the pace of staff verifying and inputting data manually, which can take even longer when onboarding corporate clients.
It doesn’t just end with onboarding though, KYC and KYB are ongoing processes, implementing manual PEP, sanctions, watchlists and adverse media scans are part of your company's due diligence. Traditionally, it takes an extensive team to handle these, which is expensive and time-intensive as they are mundane tasks that can easily lead to errors.
When completing repetitive tasks, red flags can be overlooked, this is an issue affecting more than the financial industry. Mistakes can potentially lead to reputational risks and fines. When issues are flagged, there also tends to be a delayed response when left in the hands of people, aggravated by our human inability to use objective analysis.
So, you see, the problem is multifaceted. Even when manual onboarding is executed flawlessly, the time it takes is a sore spot for customers who are left waiting day after day. There's a tendency to think that throwing more people at the problem may alleviate issues, but that just leads to more of the same problems. The only viable solution lies within technology.
How Digital Tools Disrupt Manual Onboarding
Taking a digital, more automated approach to onboarding eliminates a lot of pressure embedded within manual handling and allows increased visibility. Don't think of it as a hands-off approach but being more hands-on in all the right places!
Automation provides a better view of the landscapes in which you operate, for example, it means you'll never miss a red flag as it increases both assurance and consistency of your monitoring. Setting the suitable parameters and scanning frequency allows the technology to do all the heavy lifting of inspecting data and then alerting your team when needed.
Using AI, machine learning, biometrics systems and digital identity scanners, at your fingertips is a complete system that works seamlessly to verify and keep a watchful eye. Best of all, it doesn't suffer from the pitfalls or fatigue of manual handling. The difference is noticeable internally and on the customer-facing end. Most millennials embrace this kind of technology; according to a new report from PYMNTS, more than three out of four millennials are "very satisfied" with using mobile device-based face biometrics for authentication.
Digital-first onboarding means real-time insights without delays. The system can flag errors much faster than when using a paper-based system. It streamlines by preventing client errors, for example, when filling out a digital form and information is missing, the system will notify the client before they can submit it. By removing human judgement, you also allow your processes to be viewed from a purely objective analysis over subjective analysis. Your risks significantly go down and you equip yourself with maximum efficiency. This all translates into a business that can scale and pivot with absolute ease.
Digital systems create a clear communication structure across the board, breaking down redundancies by centralizing data to better guide your teams. Using no-code tools like HelloFlow, you can create a digital onboarding system with a simple drag and drop interface. Our Monitoring Engine handles KYC, AML, and compliance processes with far greater security than manual-based handling and at a far lower cost. With our intuitive system, you can have a new digital client onboarding flow up and running within a few minutes. No coding knowledge required! Sound too good to be true? Book a demo now or try our 14-day free trial to see for yourself.