38% of banking industry customers
claim that customer experience is the most important criterion in choosing an
appropriate bank.[1] Creating rewarding and positive customer experience should
be a priority for all financial institutions (FIs).
Advancing with digital times, most customers today expect their experience to be convenient, friendly, digital and personalized. This is only possible if they incorporate the best Video KYC tools and bring about Digital KYC verification for the customers.
A large number of customers drop out of the onboarding process because of frustration with paper or the volume of information required.[1] According to Accenture Banking 2020[2], digital transformation has improved customer experiences by up to 25% in the banking sector alone.
The onboarding process is the first point of interaction between a financial institution and its customers, and a great onboarding creates the foundation of a longer value-driven relationship. The current offline and physical onboarding of new customers is a long process and is especially difficult for customers in remote areas, far from branches. Institutions have been investing in digitizing the onboarding process for years now, creating experiential improvements, rendering Video based KYC identification possible, with lowered costs, and higher value for customers.
We feel that great onboarding is built on some easy principles – Some easy steps for improving the onboarding process to provide users with the experience they desire are as follows:
1. It’s all about first impressions
In the digital medium, FIs have less than 20 seconds to persuade a potential customer to stay on with their site/ offer. Also, digital channels are converging. That is why developing an effective landing page for both mobile and laptop for potential and returning customers is where truly top-quality customer acquisition/onboarding begins. The no-frills example of Google Search page is one of the greatest case studies in this area.
2. Do not limit a customer’s options
Financial institutions need to cater to omnichannel customer journeys. Customers may begin their journey on one channel and can complete it via another channel. Providing different channels (mobile application, website, call centres, business correspondents and/or in-person), managing critical information flow seamlessly in real-time, and creating Aha! moments gives customers the required flexibility and increased satisfaction.
3. Be dynamic
Traditional experiences were static. If you ask the same question twice, you get the same answer. Modern technologies bring dynamism to the operations. When people repeat a question, it often means that they were not satisfied with the first answer. The onus of better comprehension is suddenly on the institution. This is where most leading institutions use advanced analytics, machine learning and AI to understand customers and recommend services/ offers to them. Most of these capabilities are back-end investments to create front-end moments. But for onboarding, our focus should be to minimise the effort that a consumer has to make while enrolling.
4. Reduce average customer TAT for onboarding
In certain lending journeys, for a
customer, the end to end TAT (from being a first stage lead/ prospect to
starting her journey with the institution) can be more than 30 days! In the
current age and time, it sounds like a civil offence to make someone wait that
long for delivering the product/ service.
Whether it is the core components,
such as KYC for a regulated entity, or process ingenuities, such as
Tele-verification/ Tele-PD, customers expect ease, flexibility, and instant
gratification.
For instance, the entire onboarding
journey for a FI can be 3-5 minutes, without significantly compromising the
expected prudence/ risk management/ policy standards. From Document/ ID
verification, Video KYC, bureau checks, referral checks, tele-verification,
document signing, payment/ bank account verification, disbursal – most
processes are ready to be moved to their digital equivalents.
With RBI approval of Video KYC,
banks enable their customers to complete the KYC process from the comfort of
their homes using Video based Customer Identification Process. This improves
the customer experience and sets a positive tone encouraging further
cooperation.
But how can banks conduct Video
KYC?
Kwik.ID by Think Analytics provides
for instant verification through the usage of cutting-edge technologies like
OCR, Database verification, Face Matching, Liveliness detection and Video KYC
in simple UX supporting Aadhaar XML, PAN, DL, Passport & Voter ID.
To find out more about how Kwik.ID can help you ease the process of customer onboarding, do write to us at info@getkwikid.com.
[1]
https://www2.deloitte.com/content/dam/Deloitte/lu/Documents/technology/lu-digital-onboarding-financial-services-digital-natives-112017.pdf
[2]
https://www.accenture.com/us-en/insights/banking/commercial-banking-top-trends-2020
