What is the Future of Digital Onboarding?
What is the future of Digital Onboarding? We often see that the future of Digital onboarding and the future of customer experience topics go hand in hand, in this blog we discuss topics like digitalization, the power of trust, and speed in both digital onboarding and how it affects customer experience. A few highlights are discussed below. Here are a few of the biggest trajectories the digital onboarding sector is heading towards.
Digital identity verification
With the rise of digital transactions, digital identity verification has become increasingly critical for the smooth functioning of digital onboarding processes. This involves verifying a person’s photo ID, biometrics, and company documents. The COVID pandemic has also spurred massive growth in online transactions worldwide. According to a recent study, the global digital payment market is expected to grow at a CAGR of 19.4% between 2021 and 2028, reaching a value of USD 240 billion by 2028.
Today, insurers must comply with stringent legal requirements to verify the identity of their customers. This process can take 20 minutes or more in many cases, while the average customer expects the onboarding process to take under 60 seconds. Further, this approach costs insurers in user lifetime value. This means that insurers must consider the future of digital onboarding by leveraging AI to automate the verification process. With the help of AI, insurers can implement an automated, scalable and automated identity verification solution that can quickly verify the identity of a policyholder.
To make your onboarding journey more effective, you need to tailor the experience for different types of users. For example, you may choose a different onboarding flow for millennials versus someone more interested in a more traditional onboarding process. Or you may want to personalize it for all employees. Whatever the case, segmentation is the future of digital onboarding. Segmentation provides more insights and allows you to personalize it on a larger scale.
Today’s marketers are relying on segmentation to target their marketing campaigns. But segmentation is not effective enough for personalizing the experiences that customers receive. Instead of addressing the needs and preferences of each consumer, marketers are relying on demographics and other attributes to create mass offers. These targeted messages are not relevant or personalized enough to motivate each customer to take action. In addition, it is not scalable.
Data can provide insight into employee behavior and experience. For example, if an employee takes out a mortgage, the insurance company may know they need life insurance or buildings and contents insurance. In determining what the best course of action is for each individual, contextualization takes into account the environment, observable time and space, intent, and process. Without these factors, contextualization will be a challenge, but it is essential to the future of digital onboarding.
Creating and delivering relevant experiences is becoming increasingly difficult, especially in the splinternet – a fragmented world of digital touchpoints, including web, social, mobile, and video. To meet consumer demands, businesses must deliver smarter interactions across all channels. Data contextualization can help organizations meet their goals and remain competitive. It can also improve the customer experience across channels, reducing the abandonment rate and boosting cross-sells and revenue.
With the Covid-19 pandemic sweeping the world, businesses must reduce their person-to-person contact. Speed of digital onboarding is essential for a range of reasons, from improved customer experience to higher conversion rates and an expanded customer base. A flexible digital identity verification solution will safeguard businesses from fraud and ensure fast onboarding. A digital identity verification platform needs to be designed with flexibility in mind. It needs to be fully compliant with the GDPR and AML5 Directive and offers access to the most global market.
Traditional onboarding processes include paperwork, filling out forms, manually checking paper files and ID verification in person. Digital technology has revolutionized these processes and has led to a much more efficient process. With the ability to streamline the onboarding process, banks are gaining a competitive edge. For example, a new digital onboarding solution can help a company improve its mobile experience and cut down on phone calls to the branch. In the meantime, digital onboarding solutions can improve customer satisfaction and loyalty.
In today’s increasingly digital world, the efficiency of your onboarding process is of utmost importance. Traditional onboarding, where you need to hand out copious amounts of paper, is no longer feasible. Instead of printing out documents, signing them, and filing them, you can store all your documents in one central database. Your employees can sign and return documents anytime they want, without the hassle of going through the physical process of completing these steps. With digital onboarding software, everything is stored in one central database. Signed documents can be sent back instantly or assigned to a virtual folder, where they can be accessed later on.
The user interface for your digital User Onboarding process should be as simple as possible, with an emphasis on facilitating interruptions. Data security is critical. You need to secure all data uploaded by your customers, and your onboarding process should be designed to ensure that they’re secure. KYC analysis, or knowing your customer’s identity and biometrics, involves verification of documents and verifying the customer’s identity. It also involves obtaining additional information on the customer, such as a photograph or video, which can be used to tailor the services you offer.
In a world where customer acquisition is dominated by digital, implementing a digital onboarding strategy is essential for a business. The traditional process of Customer Onboarding individuals costs as much as $280. By adopting a digital onboarding process, a bank can reduce this cost to $120, and even lower it to $19 in subsequent years. In corporate banking, the costs of onboarding an employee can be as low as $1,200, as long as the data is handled digitally. However, if a customer experiences difficulties in signing up for a product or service, they will likely abandon the signup process and look elsewhere. This phenomenon is called “customer churn.”
Onboarding costs vary widely, based on the business’s size and the role of each new hire. The costs start at a few hundred dollars and go up to tens of thousands of dollars if a senior marketing executive is involved. Onboarding time varies, but it is often the case that a newly hired employee needs two to twelve months to reach break-even. However, the benefits of implementing an efficient digital onboarding process outweigh the costs.
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