The absence of robust online onboarding systems had slowed down the performance and efficiency of the sales teams in non-banking financial companies. Financial lending institutions need to tackle increasingly complex challenges to meet the standard for customer expectations in today’s competitive business environment. Several NBFCs and other financial institutions are now shifting towards digital customer onboarding to achieve unprecedented levels of customer satisfaction.
What is the Digital Onboarding process and how is it done?
When the process of introducing new customers into the system is automated with the help of paperless onboarding software, the process is termed digital onboarding. This process upgrades the traditional system and makes it fast, simple and more secure by leveraging the power of the internet. The automated onboarding method eliminates the need for performing heinous tasks such as filling out forms, making payments, uploading documents and verifying them.
With digital account opening solutions, customers no longer have to physically go to the bank or any financial lending institution to apply for a loan. The process that would conventionally take days or weeks to complete can now be done within just a few clicks. Both borrowers and the organisation can save precious time by using modern technology and electronic know your customer (e-KYC). The virtual KYC feature of paperless onboarding software allows the borrowers to upload their sensitive documents on a safe and secure platform where the organisations can verify customer identity and develop their financial profiles. This software evaluates the authenticity of the documents uploaded to prevent fraud, money laundering, terrorist financing or other criminal schemes.
To evaluate the originality and authenticity of the data, the banking institutions verify the ID, face and documents. Organisations capture this data by integrating software and services like biometrics, image recognition and artificial intelligence. It is important to provide the customer with a seamless and smooth onboarding procedure as this will be the beginning of the relationship between the organisation and the borrower. There is cut-throat competition in the market and the organisation might risk losing customer if they fail to meet its expectations. An underwhelming experience can result in a customer abandoning their attempt and taking their business elsewhere.
Benefits of Digital Customer Onboarding for an NBFC
There are a galore of benefits of an online onboarding portal for the employees in a financial lending institution. Here are some of those:
1) They are time-saving
The sales team can be more efficient in their duties when they have a portal that gets the job done without any barriers. They can save precious time by onboarding every customer through an online portal without physically meeting the customers. The sales team will get more time to fulfil their core responsibilities when they have to invest less time to store, revise and manage the paperwork.
2) They reduce overhead costs
One of the biggest perks of getting paperless onboarding software is that it is a one-time investment that will last for the long term. The installation costs of this software will be soon covered by the employee's productivity. Moreover, it will save costs on papers, pens and other stationery products that a workforce of hundreds of people will use every year.
3) Eliminates Barriers
Online onboarding eliminates geographical and language barriers. An organization can do business with an individual from any corner of the world with software that keeps them connected. They also work great for scenarios where one needs to take prompt action. If an employee needs to host an urgent meeting immediately after the lunch break, they can notify the customers about the same on the app.
4) Increases team bonding
While the digital account opening solution takes care of the onboarding process, the employees can spend more time building long-lasting strong relationships with the customers. This allows the employees to organise virtual team meetings or fill out personality forms enabling them to bond.
5) Provides better customer experience
According to research, providing good customer service can increase an organisation’s sales and conversion rates by 400%. A well-organised digital solution with less than 10 easy steps for online onboarding can not only shoot up employee productivity but also increase your customer return rate.