Digital banking has been on the rise in recent years, and for good reason. With the convenience that comes with accessing banking services from anywhere, at any time, more and more customers are opting for digital banking options. However, the onboarding process for digital banking can still be cumbersome and complicated for some customers. In this article, we will explore what digital banking onboarding is, the challenges customers face, and how banks can simplify the process for their customers.
What is digital banking onboarding?
Digital banking onboarding is the process of acquiring new customers for digital banking services. This process involves collecting customer information, verifying their identity, and setting up their account on the bank’s digital platform. The onboarding process typically involves a series of steps, including filling out an online application, providing identification documents, and setting up login credentials.
Challenges customers face during digital banking onboarding
Despite the convenience that comes with digital banking, the onboarding process can still be a challenge for many customers. Here are some of the challenges customers face during digital banking onboarding:
Complicated application process
Many customers find the digital banking application process to be complicated and time-consuming. The application may require customers to provide a lot of personal information, and some customers may not feel comfortable sharing this information online.
Difficulty in verifying identity
Verifying identity is an essential part of the onboarding process, and it can be a challenge for some customers. If the customer’s identification documents are not up-to-date or do not match the information provided in the application, the onboarding process may be delayed or denied altogether.
Setting up login credentials
Setting up login credentials can also be a challenge for some customers. If the process is not intuitive or if the customer forgets their login information, they may be unable to access their account, leading to frustration and dissatisfaction.
How banks can simplify the onboarding process for customers
While the onboarding process can be a challenge for customers, there are steps banks can take to simplify the process. Here are some of the ways banks can make the onboarding process easier for customers:
Streamline the application process
Banks can streamline the application process by only requesting essential information from customers. They can also make the application process more intuitive and user-friendly by providing clear instructions and easy-to-use forms.
Use technology to verify identity
Banks can use technology to verify a customer’s identity, such as biometric authentication or facial recognition. This can help ensure that the onboarding process is fast and efficient while still maintaining a high level of security.
Offer password recovery options
Banks can offer password recovery options, such as security questions or two-factor authentication, to make it easier for customers to reset their login credentials if they forget them.
Conclusion
Digital banking onboarding can be a challenge for customers, but it doesn’t have to be. By streamlining the application process, using technology to verify identity, and offering password recovery options, banks can simplify the onboarding process and provide their customers with a more positive experience. By doing so, they can attract and retain more digital banking customers, ultimately leading to increased revenue and growth.