The 4 Biggest Issues with Traditional Onboarding
September 2, 2021

The 4 Biggest Issues with Traditional Onboarding

Key takeaways:
  • When onboarding a client, the process is rife with frustrations
  • If your services don't reflect modern times, customers will jump ship.
  • Roadblocks, in-person identification, manual paperwork and long waiting times all contribute to frustrations felt by customers when being onboarded.
  • These processes are all in need of a digital touch to curb abandonment rates.

Experience is everything! When it comes to onboarding, the customer remembers how it made them feel. They say a dissatisfied customer will tell 9-12 people about their experience. Avoiding frustrations when onboarding a client is like navigating a minefield and traditional processes operate on a trigger hair.

It’s good to note, that improving your customer service and general brand experiences will never be as simple as changing one aspect of how you operate, but an ongoing endeavor that must evolve with the times. Customers are calling for change, over 90% of customers think that companies "could do better" when onboarding new customers. Just let that sink in, 90%!

Only 15 years ago, people were more than happy to pop to the bank to get their affairs in order. Now that's considered a big undertaking. When your service offerings no longer reflect the current times, that's a problem. Businesses not only have to be contemporary but take it one step further and be innovative. It doesn't matter if you have stellar customer service in-store. If it isn't online, it isn't worth a thing.

"The first step in exceeding your customer's expectations is to know those expectations." – Roy H. Williams, Author and Marketing Consultant.

The 4 Biggest Frustrations with Traditional Onboarding and How to Solve Them

You might not know that you're even losing customers to lousy onboarding. Without the digital data to back it up, it's near impossible to pinpoint where you're losing customers in your traditional onboarding pipeline. 1st Financial Training Services found that 96% of unhappy customers don't complain; however, 91% of those will simply leave and never come back. Here are the most common problems with traditional onboarding and how to solve them fast!


The issue: Customer hitting roadblocks

Filling out manual forms isn't as cut and dry as customers would like it to be. It can be vague and lead to confusion. In their minds, this is already a bad customer experience with poor customer service without even having spoken to a representative. These feelings are only aggravated if they have to reach your team by phone or are forced to seek help in-store.

The solution: Digital onboarding allows customers to be guided through the process more precisely.

Any confusions or errors can be addressed instantly with automation, an FAQs page, or online customer live chats to guide the customer through with little effort on their part. More than 60% of US consumers say digital tools like websites, mobile apps, and live chat are their go-to channels for simple inquiries. Using digital onboarding can also refine your process based on data analytics and help curb abandonment rates.

While filling in lots of documents hitting roadblocks is unavoidable.


The issue: In-person identification

There is an expectation that services should be digital-first nowadays; that means verifying your identity in person has become a burden and a great inconvenience. Soon, it will be totally out of the question. Most millennials and Gen Z's will not adopt a brand that doesn't offer mobile-first solutions. During covid, clients were unable to make it to banks even if they wanted to. Now that things are more stable, they can but no longer want to.

The solution: Digital identification helps to save time and can be done remotely.

Digital identification tools make it effortless to verify customers. It has become more and more popular amongst companies like Hyundai, DiDi, Binance and American Express. Not only is it a secure way to do so, but it's cost-saving and time-saving. This allows you to future-proof your offerings by making them mobile.

In-person identification and in-branch visits are a great burden for the client.


The Issue: Manual paperwork

Filling out a series of documents or signing a stack of papers, often under the pressure of bank employees, is not an enjoyable experience. For customers, it is much more appealing to do such procedures in the comfort of their homes and on their phones. This issue also slows your team down, as they are forced to do repeated data entry and face the inefficiencies of a paper-based business.

The solution: Digital onboarding means customers can onboard themselves anywhere.

Be done with pens, papers, printing, bank visits and paying for a courier to deliver documents entirely. Digital onboarding ultimately saves money and time spent on staff manually onboarding clients and keeps your services at the customer's fingertips.

Manual paperwork is not only an inconvenience for clients but for business stakeholders as well.


The issue: Long wait times

Traditional onboarding takes far too long due to manual handling, which leaves your customer without access to desired services. With little transparency on how long the process might take, it can feel like there is no end in sight. Customers may also find it daunting not knowing how long it takes to fill out the required documents and get frustrated when they are asked to submit further documentation later down the road.

The solution: With digital onboarding, clients have a more straightforward overview of the required information before starting the process.

Digital onboarding means faster, more concise onboarding. Approvals can be executed far quicker using automation and AI. A week-long process can be condensed into a few hours. With more transparency across the board, client’s expectations can be managed, and they can better avoid leaving crucial information out.

A man looking at his watch
Traditional onboarding takes too much time and is less transparent than digital onboarding.

Thinking about going digital? HelloFlow addresses many of the issues experienced with traditional onboarding. Our no-code digital onboarding is frustration-free and allows you to create a frictionless onboarding experience in just a day. Stay digitally savvy with HelloFlow's drag and drop tools, including digital identification, compliance, KYC, KYB and AML features. Save costs and start becoming more agile. Book a demo with our experts today!

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