5 reasons why you should choose digital onboarding

5 reasons why you should choose digital onboarding

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The Covid-19 pandemic has accelerated digital transformation in all sectors, a process that was already under way in recent years. Some companies have welcomed the change, adjusting procedures and business models.

Others, on the other hand, have fallen behind, losing their competitive advantage.

Digitization: what are the gaps?

Many companies have been able to adopt the technologies of the 4.0 revolution, such as Cloud Manufacturing, Augmented Reality and Big Data.

Of these, some, although well capable of offering to their customers full-digital remote processes, are still operating manual and non-automated in-person procedures.

The gap to be bridged, therefore, is not only between digitized and non-digitized companies, but between services provided digitally and services provided in a still “traditional” way.

This is the case of customer identification, verification and acquisition, a process, that of “onboarding”, not always integrated with tools such as identity and digital signature, now widely used in Italy.

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5 problems with manual onboarding

The problems of non-digital onboarding are many. Today let's discover five of them together:

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Slowness of processes

Manual and non-automated processes result in long waits for prospects. These, while finalizing the onboarding, will experience an unsatisfactory customer journey and will probably, at the first opportunity, choose a competitor with faster and more fluid procedures.

From the perspective of branch operators, however, without digital support devices, work is time-consuming and requires a lot of effort.

Too many paper documents

In a world that is increasingly attentive to issues of environmental sustainability, using paper documents for its procedures is anachronistic, considering the environmental impact and the numerous problems of archiving and privacy.

All of this translates into huge costs for the company.

Errors due to manual entry

The manual activity of entering data, both on paper and on an electronic device, is repetitive, not stimulating for employees and with a high margin of error.

In addition, manual work makes it more difficult to increase the volumes of documents to be processed, slowing down procedures.

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Failure to comply with compliance

Certain categories of subjects must implement KYC (Know Your Customer) controls when acquiring new customers, in compliance with European Anti-Money Laundering Regulations.

With manual onboarding, it is not possible to access databases and lists responsible for anti-money laundering (PEP, sanctions and crime), and it becomes more complex to implement a customer verification procedure in full compliance with Anti-Money Laundering Regulations.

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The risk of identity fraud is always around the corner

The phenomenon of identity fraud is very common. Counterfeiting experts are able to create false or synthetic identities (a mix between real and fictitious data), also thanks to information taken from the dark web. Often, in fact, the personal documents that are presented during the onboarding phase are not authentic and the work of the branch operator is not enough to recognize the attempted fraud.

5 advantages of digital onboarding

Onboarding can be carried out both remotely and in person in a totally digital and automated way, thanks to devices capable of exploiting machine and deep learning algorithms and facial recognition technologies.

Let's see together what are, for a company, some advantages of digital and automated onboarding:

Faster process speed

Thanks to a digital and automated process, waiting times are reduced, the user abandonment rate decreases and the customer journey becomes more satisfying.

For branch operators, on the other hand, the effort is reduced, with an improvement in overall performance.

Reduction of environmental impact

By dematerializing and digitizing paper documents, the company reduces its environmental impact and becomes environmentally responsible, obtaining numerous economic and reputational advantages. Waste and, thus, printing costs are reduced.

In addition, by eliminating the process of filing paper documents, employee time and performance are optimized.

Reduction of manual input errors

By eliminating manual entry and introducing devices that can automatically capture data from documents, the margin of error for employees is reduced.

Even in this case, the costs to be incurred by the company decrease and the overall productivity improves.

Respect for compliance

With the support of digital tools capable of accessing the lists responsible for anti-money laundering (PEP, sanctions and crime), a customer verification procedure is implemented in full compliance with the Anti-Money Laundering Regulations.

Especially in the case of financial service providers, we are talking about greater security and reputation, with a ripple effect on the financial sector as a whole, which can encourage greater investments.

Correct protection of the risk of fraud

Thanks to biometric recognition and systems based on artificial intelligence, it is possible to recognize counterfeit documents and, therefore, false or synthetic identities, with greater probability. Devices of this type support branch operators and allow them to properly monitor the risk of fraud.

The importance of the right digital partner

In conclusion, rely on Right digital partner is a must for a company that wants to offer competitive services.

Choosing a technological solution forOnboarding both in person and remotely, it means fully accepting the current digital transformation and remaining competitive.

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