The digital banking industry has widely been considered the ‘future of all banking’. However, while the need for digital banking options grows day by day, the companies themselves face a lot of challenges trying to onboard users from multiple countries.
Digital banks, though seen as the viable alternative to traditional banks, do not have the luxury of in-person user verification. Virtual onboarding, being the solution, comes with its own set of issues that need to be addressed to ensure high conversion rates worldwide. After all, according to a research report by Grand View, the industry is globally valued at 47 billion dollars & will grow at a CAGR of 47.7% to an astronomical 722 bn by 2028. And all digital banks would like a slice of that pie.
So, what are these global onboarding challenges and is there a way forward?
- Myriad of Documents
Not being tethered to a particular location has its perks. But onboarding users globally comes with the issue of multiple documents in multiple formats in different languages. Manually checking if these documents are real and belong to the user submitting them takes a long time. How can one be sure that the document uploaded has not been tampered with either? The host of checks from capturing and checking for tampering, verifying the document and processing them forward can sometimes take 2-3 days. This leads to huge wait times for the user and leads them to drop off.
- Multiple Types of User Journeys
As digital banks, you want to provide your potential users with the appropriate onboarding journeys as needed to be compliant for the type service they want to sign up to. Moreover, digital banks cannot use the same journey for every user since it depersonalizes the customer experience and may not fulfill all the requirements to be compliant. This type of constraints typically sets digital banks up for slow onboarding rates since it takes time and money to curate multiple journeys for each user journey by the means of software development and integrations.
- Global markets and Local Vendors
Some digital banks have gone a faster route by getting local vendors in each country to manage their user’s onboarding journeys. While in theory this is a great idea, it falls flat when it comes to operating at a global scale. To make this work, the digital banks must work with multiple vendors to ensure the final onboarding journey their user’s take is visually the same in any part of the world while being customised to each country’s laws and regulations as well. This kind of large-scale vendor management is expensive, time-consuming and not feasible for digital banks that are in the growth phase.
So how can digital banks avoid these onboarding issues and improve the account opening rate?
The answer is a smart identity verification and onboarding platform with all identification, authentication, and verification checks integrated into video and app-based digital workflows, enabling remote onboarding of genuine users.
In our experience, most digital banks who use verification platforms that focus on solving the above-mentioned issues have higher user onboarding rates and very minimal drop-offs. A highly specialized and designed onboarding solution which integrates core themes of digital document collection, remote-real time user verification and global compliance checks certainly helps digital banks scale exponentially. As they customize their user’s journey’s, they provide their customers with an excellent customer experience which is crucial for a digital bank.
If you are interested in a solution that can help your organization with your onboarding needs, do visit our page on the solutions we offer for digital banks.
To know more about how IDfy can help you scale your operations while improving your customer service and keeping your business safe, please write to firstname.lastname@example.org
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