3 Benefits of a Secure Customer Onboarding Process

02.1.2022

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Your customer onboarding process is your best chance to make a good first impression and a critical part of new client acquisition. Some companies have a quasi-online banking model. But if you’ve done little more than moving your legacy approach to your online platform, you may be rejecting up to 40% of good customers. That’s not counting those who never make it through the process because it's just too clunky.

Instnt is a fully managed, digital customer onboarding solution that will have you up and running in days, rather than months. We help businesses retain online customers with a process that is secure and compliant meaning that you can turn qualified prospects into good-paying clients and reduce your financial losses.  Not to mention that we are the only solution that offers Fraud Loss Indemnification up to $100M annually.

So how does it work? In just three clicks, you can create a sign-up form. Because Instnt offers no-code functionality, you don’t need a team of software engineers to develop or maintain it. Instnt uses accurate predictive models powered by the most sophisticated artificial intelligence. With our plug-and-play integration, you don’t need to choose which vendors to use or write any orchestration rules. Our AI knows exactly what to do to provide a secure and compliant onboarding process. 

3 Benefits of a Secure Customer Onboarding Process

If COVID-19 did anything for the financial services industry, it accelerated a change in consumer behavior. Now more than ever, customers expect to use digital channels. For many banks, this means a shift to online and digital services along with the back-office changes to support this transformation. Having an online presence and a mobile application simply is not good enough. That’s not the type of digital transformation that promotes share-of-wallet and adds to the bottom line. Institutions that perform best in the new normal will create a cohesive and seamless customer experience in a single online platform.

That experience starts with onboarding. It’s how companies acquire clients, prevent fraud, and ensure regulatory compliance. It is the first step in demonstrating the value that leads to profitable customer relationships.

In addition to the aforementioned ease of deployment, there are many benefits that accrue from digital onboarding. They include:

1. Cost Savings

Digitizing the onboarding process will save your company both time and money in many ways: 

  • Reduces the time required to onboard customers from weeks to minutes, thus minimizing operating costs.
  • Exponentially increases the conversion rates, thereby reducing the overall cost of client acquisition.
  • Mitigates losses from fraudulent activity, chargebacks, or bad actors.
  • Minimizes costly issues of non-compliance and regulatory penalties.
  • Resources are no longer needed to manage tech stacks or fraud losses. 

Of course, no business has unlimited resources. So when you need to put scarce resources to work in the best way possible, it must make sense for the bottom line, the business strategy, and the organization’s future viability. Instnt promises to provide $6 in value for every $1 spent on its solution. That’s a return you can count on.

2. Frictionless Customer Experience

Customers receive a flawless experience which improves customer satisfaction. They are able to help themselves without it feeling like a barrier to the level of service they expect. This is particularly important for older consumers who are increasingly going online for services. They can complete the application process online or through remote means without ever having to visit a branch. The process is one-time and hassle-free. The process is a one-time single signup that is hassle-free.

Further, traditional onboarding may reject up to 40% of good customers. With Instnt, you can reduce that rejection number by up to 50%. That’s a potential 33% increase in the number of new customers, with no additional changes to your operating model.

3. Fraud Loss Mitigation

Artificial intelligence and machine learning help ensure that only good customers make it through the onboarding process. Instnt’s patent-pending predictive analytics system validates both the device and the user behavior with a high degree of accuracy. You can be assured that you meet Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations

With Instnt, you no longer need to manage fraud losses. But the best part? Instnt provides $100MM in annual fraud loss insurance. We’re invested in getting it right.

Fully KYC and AML Compliant

Regulatory requirements in the financial, insurance, and gaming industries can keep a CCO up at night. The best way to ensure full compliance and avoid stiff fines and penalties, not to mention reputational harm, is to have a robust digital onboarding solution in place. Financial institutions are particularly vulnerable during account opening. Digital onboarding helps ensure that the proper verification occurs. These verifications must meet the frequently changing standards set out by AML and KYC. 

Instnt helps minimize compliance issues caused by human error and insufficient oversight. It protects the organization from suspicious transactions and identification fraud. We incorporate secure and efficient verifications allowing your company to serve a wider market with greater confidence.

Importance of the Customer Onboarding Process

Onboarding is the most important step in a profitable customer relationship. As more customers migrate online for financial and other services, the demand for a fast, safe and secure digital experience will increase. Institutions that thrive in the future will be those that embrace new technologies in a way that both improves the customer experience and enhances the bottom line. 

Digitization shouldn’t mean duplicating old processes in cloud-based services. Clients expect more. And with the growing security threats and the prevalence of financial fraud, institutions will do well to serve their stakeholders with best-in-class digital onboarding. See how Instnt can help your business.

 

For an overview of trends and insights into managed customer onboarding, read Customer Onboarding in the Age of Digital Banking.

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About the Author

Instnt Inc. is a public benefit corporation on a mission to bring inclusion and instant account opening experiences for businesses and their customers through proprietary technology, artificial intelligence, open standards and a collaborative effort in the identity governance industry. With Instnt AcceptTM the first fully managed customer acceptance solution with up to $100M in annual fraud loss warranty, businesses can onboard more good customers, grow their top-line revenue, and cut their operational costs without friction or fraud losses in minutes.  Instnt AcceptTM powers various fast-growing financial institutions and credit unions.