A customer account — whether at a fintech or a bank — opened without appropriate controls is dangerous, while an inactive one is worthless. A full stack onboarding solution that not only supports smooth and secure account opening, but also helps customers activate and start using those accounts is essential to acquire more users and prevent fraud.
A complete, connected customer onboarding solution – that includes identity verification capabilities for KYC and AML compliance – reduces friction and fraud risk while offering a welcoming branded onboarding experience for new users. Combining the key onboarding and activation steps into a connected solution improves the quality of the end-user experience, increases conversion rates, improves back office processes, and helps prevent fraud.
This Celent Solutions Brief covers the four main benefits of a connected onboarding solution:
- Better end-user experience: With less friction, more seamless interaction, and one set of user interfaces, the client doesn't have to jump from one provider to another.
- Improved conversion rates: Since users have a better experience, they trust the provider more, resulting in lower dropout rates. Seamless onboarding can improve conversion rates by 10%–20%.
- Improved back office processes: The back office tools and automation can help reduce administrative work and manual reviews. One company reported raising the onboarding pass rates that don't require manual review from 60% to 90%+, a 50% increase, by switching to an integrated onboarding solution
- Better fraud prevention: By leveraging information across all the different steps, from identity verification to account linking to payments, you can offer a network-based approach to fraud prevention that is typically only possible for card networks and the largest banks.