Onboard

The banking industry in India is undergoing a profound transformation, leaving behind the era of slow, paper-driven account openings and impersonal customer service. Today's banking landscape demands a seamless onboarding experience, which has become a critical touchpoint for banks aiming to acquire and retain customers. A smooth onboarding process sets the tone for the entire customer relationship, significantly impacting long-term satisfaction and loyalty. To stay ahead in this competitive arena, banks must prioritize optimizing their onboarding processes. Here, we delve into five powerful strategies, incorporating real-time insights and use cases, to achieve banking success through seamless customer acquisition and onboarding.

1. Personalization

Personalization is the cornerstone of a successful onboarding journey in banking. According to a McKinsey report, banks that personalize the customer experience see a 10% to 15% increase in sales. This isn’t just about sending generic welcome emails. By leveraging customer data and analytics, banks can tailor their communication and offerings to meet individual needs and preferences.

By understanding customer demographics, financial goals, and banking habits, banks can provide targeted recommendations and support, fostering a sense of connection from the very beginning. This not only improves customer satisfaction but also increases the likelihood of customers choosing the bank’s products and services over competitors.

A recent study revealed that 72% of customers expect banks to anticipate their needs and offer relevant products. By leveraging artificial intelligence (AI) and machine learning, banks can analyze vast amounts of customer data to predict financial needs and proactively suggest suitable products during the onboarding process. For instance, a customer saving for a down payment might be recommended a high-yield savings account, while a frequent flyer could be offered a credit card with travel rewards.

2. Mobile-First Approach

In today’s digital age, customers expect a seamless and intuitive digital experience. A study by Forrester revealed that 73% of US adults now use mobile banking. Banks can optimize their onboarding journey by offering user-friendly digital platforms and applications.

Mobile account opening: Eliminate the need for physical visits by allowing customers to open accounts entirely through their mobile phones. This caters to the on-the-go customer who values convenience and efficiency.

By streamlining the digital experience, banks enhance convenience for customers. This not only leads to higher conversion rates during onboarding but also encourages continued use of the mobile app for everyday banking needs, ultimately driving higher satisfaction levels.

3. Omni-Channel Experience: Ensuring a Cohesive Banking Experience Across Platforms

Between 75% and 90% of financial services searches start online, according to research by LSA Global. These leads can come from multiple sources including websites, apps, customer portals, marketing banners, lead forms, fintech partners, and other channels. The challenge is to aggregate all leads, qualify, and nurture them while providing a unified omni-channel experience.

The modern banking journey spans various touchpoints and devices. Customers may start the application process online, continue it on their mobile app, and finish it up at a branch if needed. To optimize the onboarding process, banks must ensure seamless integration across all channels, including online, mobile, and in-branch.

A customer who starts the application process online should be able to seamlessly complete it on their mobile app or finish it up at a branch if they encounter any difficulties or have questions. The bank’s systems should securely store their application data and progress, allowing them to pick up where they left off regardless of the channel they choose.

Consistent messaging, branding, and functionality across channels create a cohesive and unified experience for customers. Regardless of how they choose to interact with the bank, they should encounter the same level of service, information, and ease of use. This fosters trust and builds stronger customer relationships, ultimately leading to increased loyalty and advocacy.

4. Active Communication: Keeping Clients Informed and Engaged

Proactive communication is crucial during the onboarding journey in banking to keep customers informed and engaged. This could include sending SMS updates or push notifications to their mobile phones. Regular updates alleviate customer anxiety and ensure they understand the next steps in the process.

A study found that 60% of customers feel more loyal to brands that proactively reach out to them with helpful information. By implementing these proactive communication strategies, banks can reduce customer churn, build trust and loyalty, and increase customer satisfaction.

Imagine a customer applying for a new checking account through the bank’s mobile app. After submitting their application, they receive a push notification confirming receipt and an estimated timeframe for processing. A few days later, they receive another notification informing them that their account has been approved and is ready for use. They also receive an email with login credentials and a quick video tutorial on how to navigate the mobile banking app’s key features. Throughout the process, the customer feels informed, engaged, and confident in their decision to choose that particular bank.

By implementing these proactive communication strategies, banks can reduce customer churn, build trust and loyalty, and increase customer satisfaction

5. Reduce Friction: Streamlining the Onboarding Process

According to a recent report by TransUnion, 22 million consumers apply for new credit opportunities every month in India, but 70% of potential loan applicants drop out due to cumbersome and time-consuming application processes. The tedious steps and several layers of identity confirmation, coupled with manually oriented tasks, create a lag that mismatches the demand-supply relationship. Financial institutions with 3-in-1 or 2-in-1 account openings require customers to fill up multiple forms and provide information multiple times.

Banks should optimize forms so that information once collected can be used to auto-fill other forms. Additionally, KYC/registry data can be used to auto-fill forms, reducing friction for customers.

In today’s competitive banking landscape, optimizing the onboarding journey is no longer optional; it’s essential for success. By implementing the five powerful strategies outlined above, banks can create a seamless and personalized onboarding experience that fosters trust, satisfaction, and long-term customer loyalty.

By taking these steps, banks can unlock the full potential of their onboarding journey, acquire and retain customers more effectively, and achieve long-term success in the ever-evolving banking landscape.