Today’s customers prefer digital enablement in everything they do. Digital banking has so far shaped their experience post the pandemic era. But when it comes to customer onboarding, financial institutions still have traditional processes in place, requiring customers to visit brick-and-mortar locations for verifications and often complete lengthy paperwork. For institutions seeking cost savings and improved efficiency during onboarding, a fully-managed customer onboarding service is crucial.
Cost Savings and the Customer Onboarding Process
If the process of opening an account isn’t straightforward for customers, the customer onboarding process quickly becomes cost-intensive and time-consuming for banks and financial institutions. Financial services might also be using inefficient tools, making the process slow. As per reports by Fenergo, 36% of FIs have faced account abandonment for slow customer onboarding, costing them $10 billion in lost revenue annually.
Instnt offers a fully-managed customer acceptance platform to provide seamless digital customer onboarding, fraud loss prevention, and compliance management. With Instnt, you can discover more ways to reduce operational costs and boost revenues by avoiding redundant and lackluster processes while adding more good customers faster.
Streamline Customer Onboarding for Cost Savings
It’s a fact that banking and financial services do not follow a customer onboarding process that is as straightforward as those of technology players like Amazon, Google, and Apple. These latter companies limit their customer onboarding to fewer steps to ensure a seamless process. Yet, commercial and corporate banks implement multiple steps.
At a time when digitally sophisticated customers are not fond of multi-step processes and annoyed by follow-ups from different communication channels, account opening dropouts have only increased. The businesses, therefore, lose essential resources allotted to manage one account for customer onboarding.
One study by Deloitte found that customer onboarding in most cases involves more than 10 follow-ups during the customer onboarding process, which tends to create an error-prone and high-friction customer experience. Deloitte also found that it may take up to 20-90 days or 12 weeks to onboard a new customer, with a cost of between $20,000 and $30,000. Additionally, any delay in acquiring a new customer can cause revenue loss as high as $25,000.
Instnt's fully-managed and integrated product line reduces the above risks by automating the higher number of repetitive and error-prone account verification and KYC processes.
The additional benefit for your team is that it can restrain itself from matching and verifying each customer account against the databases, as they can now be automated with rules-based workflows. Studies also support that the use of automation can easily improve process efficiency by up to 50%, enabling banks and financial institutions to achieve up to $100 million in savings every three years.
As Instnt powers your functionality with hyperledger decentralized KYC processes and automation, you achieve annual cost efficiency.
Improve Cost-Efficiency With A Fully-Managed Solution
Digital customer oboarding speed is key to achieving customer satisfaction and retaining them long-term. Unfortunately, when you use different tools for digital customer onboarding一including isolated and individual tools for accepting new customer requests, database management, verification and KYC compliance一customers must complete multiple steps, causing a higher level of customer dissatisfaction. As a result, customers look elsewhere to find a frictionless and faster experience and the flexibility to use the products at speed.
By deploying Instnt, institutions have access to a complete suite within one platform, simplifying the customer onboarding by enabling faster sign-ups, KYC due diligence process and fraud loss prevention through compliance management.
- With Instnt Accept™, customer identity verification becomes seamless with one-click signups, eliminating the risks of automated attacks.
- Instnt Access™ removes customer onboarding friction by employing decentralized identity standards built on hyperledger blockchain and Web3 technologies. As a result, it only accepts good customers and prevents bad actors from causing data breaches.
- Instnt Verify™ provides continuous identity assurance that monitors every transaction, efficiently authenticating that the person on the account is the person performing the transaction and thereby preventing fraud.
With Instnt, you no longer need to allot additional money for isolated tools and follow different functional rules for separate customer onboarding processes. Instead, you can create your own rules and take control of digital customer onboarding without creating fuss within your internal processes. Additionally, Instnt’s fully-managed solution saves your institution time and resources, as you will no longer need to manage different vendors, business rules or models. Instnt takes care of everything for you.
Only Pay for Accepted Customers
Many SaaS service providers charge monthly subscriptions or recurring fees, including a percentage of fees on every transaction against their services on eCommerce platforms or different channels. Conversely, Instnt offers cost efficiency for customer onboarding. Its unique model allows for financial freedom. With Instnt, you only need to pay for customers you accept and not for the transactions customers make.
Simultaneously, Instnt’s cloud-native platform is built upon serverless micro-services architecture, removing the need for maintaining your server and paying license fees. Instnt sets you up for leveraging the fully automated digital customer onboarding technology in minutes by embedding JavaScript-based API integration in your system and enabling you to continuously save a substantial amount of money on customer onboarding costs.
Increase Cost Savings with Instnt
Instnt’s unique model offers low-code and no-code options to integrate with your platform or app seamlessly. On top of that, it employs fully integrated and automated artificial intelligence and hyperledger blockchain to speed up customer onboarding without friction. A Deloitte report suggests that automation in digital customer onboarding can increase speed, reduce errors and minimize costs in the entire customer journey. With Instnt platform in your system, you can easily aim for greater cost savings.
While Instnt Accept™ prevents fraud attacks, it also provides banks with great resources to speed up digital signups. For example, a challenger bank reinstated their customer trust by partnering with Instnt, helping them reduce drop-in rejection rates from 60% to 20% and increase digital signups by 300%.
To learn more about how you can improve process efficiency in your legacy system and achieve cost savings, set up a personalized demo today!
Sources:
PYMNTS - Why the Onboarding Process Is Key to Customer Retention in Corporate Banking
Deloitte- Automation in On-Boarding and Ongoing Servicing of Commercial Banking Clients
Outsystem - Customer Onboarding in 2021 and Beyond