What is digital onboarding?

The term of digital onboarding is well known in connection with the induction of new employees remotely. However, it is also referred to as digital onboarding when people verify their identity with a company or institution to access their services or products. Especially in the financial sector, when opening a new bank account, the term is now widely used. In this article, we look at the process of digital onboarding, why it often leads to abandonment and how this can be avoided.

Digital onboarding is the process of verifying the identity of an individual or business online. It usually involves submitting personal information, such as name, address, date of birth, and Social Security number, to an online service provider. The provider then uses this information to verify the customer’s identity and confirm that they are who they say they are. 

Digital onboarding can be used for a variety of purposes, including opening a new bank account, applying for a loan, or signing up for a new online service. It is a convenient way to verify someone’s identity without having to meet in person or send sensitive information through the mail.

For the purposes of financial services and especially digital banking, there are extra steps involved which fall under the scope of KYC/AML regulations. Details about KYC regulations are explained here.

How does the digital onboarding process work?

Before remote and digital onboarding became common, people provided their data in person, by mail, or by fax. This was often expensive and time-consuming. As businesses and institutions move more of their operations online, they need secure and reliable digital onboarding processes.

The digital onboarding process starts when the customer decides to buy/sign up for a product or service. The customer uses a laptop or smartphone to provide the necessary data step by step. This includes filling out online forms with personal data, answering questions, and uploading required documents that proof their identity. The customer then waits for the company’s approval.

Customer abandonment as the key challenge of digital onboarding

The digital onboarding process takes place in the early phases of establishing a relationship with a new customer. Therefore, it is very important that it is as convenient and well set-up as possible, as it directly influences the image that the customer gets of a company.

However, it often happens that the customer decides to abandon the onboarding process, either because it takes too long or is too difficult to complete. Especially when the onboarding is done manually, the process can be very time consuming and confusing due to a lot of back and forth over multiple touchpoints.

And even when the onboarding process is set up with a digital identity verification solution, customer abandonment can occur.  

The biggest driver for dropouts is a poor user experience. Digital onboarding processes that are not highly customer-focused and tailored to the user expectations will result in frustration and ultimately abortion of the process.

How PXL Vision speeds up and simplifies the digital onboarding process

Fast digital onboarding improves the user experience, increases the conversion rate and expands your customer base. Here are the 5 key benefits of our identity verification solution:

• Unique user experience (UX): A fully automated UX with reduced screens and less interaction in the onboarding process
• Clear instructions & instant feedback: Immediate responses without long waiting times for the customer
• Multiple ID support: Support of various types of IDs and ongoing assessment of new versions to avoid failures and thus frustration
• Flexible configuration and branding options: For convenient integration into existing processes and designs so that the customer does not have to change media and is not confused by the name of a third-party provider.
• Security: Extremely high data protection for sensitive personal data for more trust on the customer side 

Find out more about how our solution helps to optimize your digital onboarding processes or reach out to our experts for an individual non-binding consultation.