Optimising the customer onboarding experience

Onboarding for financial institutions is a critical touchpoint in the customer experience- it is the first time a prospective customer experiences the service of their bank.  

Regulatory requirements such as Know-Your-Customer (KYC) are often considered a means to an end for financial institutions. However, onboarding should be considered as a golden opportunity for financial institutions to get to know their customers better, tailor their products and services and provide greater customer insight. 

KYC guidelines dictate that financial firms must first verify individuals/entities before they become a customer. This is enforced by the Financial Conduct Authority to prevent money laundering, the financing of terrorism, illegal schemes and to monitor and reduce risk. Customers must provide papers for verification such as passports and proof of address for firms to analyse and legally confirm the legitimacy of a client’s identity. 

Digital disruption within the financial services industry has contributed to consumers expecting a faster, frictionless experience from their provider, which can be completed wholly online and only once, rather than having to go to a physical location or complete the same onboarding process for different departments within the same firm. With 81% of customers expecting a faster service as technology continues to advance, financial organisations need to strike a balance between meeting regulatory requirements while providing a fast, seamless onboarding experience as well as ensuring that while asking the right questions to stay compliant that they do not come across as intrusive. 

Digital technology has the capability to facilitate a faster onboarding experience for customers, allowing them to onboard using their preferred device, at the time they choose. For firms, all regulatory standards can be met using digital technology also. Kainos can build solutions with multiple connection points to enable an end-to-end digital customer experience instead of just a web frontpage with manual intervention needed at the backend. 

These solutions can: 

• Provide a more accurate verification of identity and proof of address documentation 
• Show a clear audit trail for regulators when checking that all requirements have been met 
• Result in faster revenue flow for the onboarding firm, with a quicker onboarding experience for customers 
• Improve customer confidence, as their needs for a faster experience are being met 
• Flag any potential customers who are higher risk, for employees to assess for suitability 

We collaborated with Concardis, a major European acquirer, to deliver a bespoke digital KYC solution called SmartPay. This resulted in: