Money side up: why onboarding and compliance are essential KPIs for success

A poor user experience has the ability to drive away customers and potentially damage a company’s reputation. With account creation often being the first customer touchpoint, one of the easiest ways to improve onboarding and compliance processes is through identity verification programs.

By leveraging the best practices needed for identity verification, banks and financial institutions will be in a better position to attract new customers, retain existing customers and remain compliant with regulatory requirements. Let’s take a look at the top three ways digital identity verification is essential to realize increased revenues with decreased costs.

Did you know that by 2023, Gartner predicts that 75% of organizations will be using a single vendor with strong identity orchestration capabilities and connections to many other third parties for identity proofing and affirmation? This is up from less than 15% today.

Why does this matter when it comes to attracting new customers? Given that banks and financial institutions need a seamless and secure onboarding process with less friction, the selection and implementation of digital identity verification solutions are often the difference between success and failure.

With a solution like Trulioo GlobalGateway, financial institutions can benefit from a customer onboarding experience that balances security and speed. Fast and automated identity verification processes allow for faster onboarding with risk-based workflows that let organizations apply the right amount of friction based on business needs and customer profiles

By being able to deliver a quick and seamless onboarding process, financial institutions can provide customers with a frictionless experience that increases customer confidence and trust while also building their organization’s reputation.

It was recently reported that on average banks are spending more than $300 to acquire a new customer. Despite all the time and resources that go into attracting new customers, this is just the tip of the iceberg when it comes to financial institutions growing their customer base.

While attrition rates in the banking industry are around 11%, the annual churn rate for new customers doubles that figure with 20-25% of new customers leaving within their first year. Meanwhile, of those new customers that have churned, more than half of them do so within the first 90 days after opening their accounts.

This only further emphasizes the importance of customer loyalty for banks and financial institutions. Beyond the initial sign-up, financial institutions want a customer for life that will not only establish one account opening but hopefully many, such as chequing, savings, loans, etc. By having an identity verification process in place with the ease of onboarding and security, an existing customer will be more likely to open additional accounts in the future.

Financial institutions need to create a smooth account opening process that satisfies anti-money laundering (AML), Know Your Customer (KYC) and Know Your Business (KYB) regulations, which is no easy feat. As digital services continue to rise in nearly every industry, customers are becoming more expectant of convenient onboarding processes.

Beyond meeting compliance requirements, a digital identity verification solution can also help financial institutions reduce onboarding risks. Backed by the flexibility to adapt to changing regulatory requirements quickly and easily, financial institutions can ensure they are first to market with new products and services while simultaneously minimizing risk. Meanwhile, having good compliance processes can make it far easier to enter new markets in a fast and seamless way, rather than being held up by regulatory bodies and red tape.

Given the customer-focused nature of environments that banks and financial institutions operate in, engaging in these new relationships early on is essential for heightened success. By leveraging a sophisticated, digital-first onboarding and compliance strategy, financial institutions can provide the quick and seamless onboarding experience that customers crave. Having laid the groundwork for a great first impression, financial institutions will then be more likely to see increased satisfaction rates and long-term customer loyalty.

Ready to begin seeing increased revenues with decreased costs? Get started on implementing and improving your customer onboarding with a digital identity verification program today.