Transforming The Customer Onboarding Journey For A New Age Digital Experience

Graphic of a puzzle piece within a speech bubble

The Challenge

UK banking is facing its greatest shakeup since the industry came into being. Monumental changes in regulation, technology, competition and costs have altered the competitive landscape forcing incumbent banks to rethink legacy structures and strategies.

Graphic of a puzzle piece within a speech bubble

The Challenge

UK banking is facing its greatest shakeup since the industry came into being. Monumental changes in regulation, technology, competition and costs have altered the competitive landscape forcing incumbent banks to rethink legacy structures and strategies.

Disruptive Forces Of Change

Regulation

UK Banking regulation and policy is recognised as a key driver in determining industry direction and necessary for the UK to remain as a global financial leader. The most notable change has been the introduction of Open Banking. With the primary aim to increase transparency and competition in a highly monopolised industry, the new directive is forcing banks to rethink the products on offer while placing customers at the forefront of commercial strategy.

New Market Entrants

Challenger banks are emerging across the globe and disrupting the status quo. Unlike traditional players, these new banks can forgo the pain points associated with legacy IT systems and unwieldly organisational structures, providing opportunity to position as technologically competent, customer focused, niche product providers focused. Despite the growing influence of digital banks, they are yet to dislodge traditional financial institutions, however creating pressure for imminent changes in traditional market approach and strategy.

Technology

As the digital revolution gathers pace, technology is empowering banks to offer more sophisticated and seamless products offering. Technological advancements have also empowered banks to simplify customer journeys resulting in higher satisfaction and loyalty. As research strongly indicates towards the growing preference for online banking, organisations are being forced to respond.

Changing Customers

With wavering trust in financial institutions, retail banks must recognise the importance of customer satisfaction for future business growth. In the advent of technology, customers have grown accustomed to instant, multiplatform, banking experiences and demand for personalised, seamless services

Cost Pressures

Minimising costs has always been an organisational pain point, however its ability to offer a life line to struggling margins means it is also hailed as a crucial tool for commercial viability. With growing market pressures; strong competition, commanding customers and regulatory changes, incumbent banks are being forced to review inefficient organisational structures and streamline for the digital world.

The Business Problem

Harbouring a manual onboarding process, client customers were required to physically scan and post identification documents during the application stage. Such procedures presented large scale security issues, high internal processing costs and high levels of customer friction. Inevitably leading to a weakening bank to customer relationship and translating into long-term profitability issues.

Identifying Digital Opportunity

Working closely with the Head of UK Fraud, Strategy Desk identified four innovative customer onboarding methods. Following rigorous due diligence procedures, the team quickly identified commercially viable partnerships with third-party verification providers. Innovative methods included the use of social media data to fulfil KYC protocols and the use of Open Banking API’s for the purposes of affordability.

Results

Following publication of our report and recommendations, the bank quickly implemented solutions which saw a reduction in customer drop off rates by 20% and decreased incidences of fraud by 6.7%. Furthermore, the inevitable cost savings from the refinement of internal operational efficiencies made a significant positive impact on business commercials.

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