Overcome Customer Onboarding Challenges in the Financial Sector

Honor Donnie  |  December 16, 2021   |  Data & Technology  |  ID Verification  


The pandemic and digital transformation have forever changed how the financial sector handles customer onboarding. As remote work became the new normal, companies quickly digitized daily tasks to ensure business continuity. But, with customer expectations changing, fraud on the rise, and resilience becoming more of a priority, financial institutions must find ways to address customer onboarding challenges – here’s how technology can help. 

The increased demand for digital experiences

Now more than ever, consumers are looking for a simple and frictionless experience. As a result, the onboarding process plays a crucial role in which company they choose to do business with. Banks and lenders must improve their onboarding to gain a competitive advantage.

Some studies have shown that manual processes have contributed to a 15-20% increase in onboarding costs.

Additionally, studies show that manual processes have contributed to a 15 to 20 percent increase in onboarding costs. Financial institutions can reduce that by embracing artificial intelligence (AI), machine learning (ML), and alternative data sources like utility bills. These changes ultimately improve the customer experience, reduce onboarding times, and cut operational costs.  


See how Urjanet enhanced customer onboarding and identity verification for this global identity verification platform


Prepare for unexpected disruptions

2020 highlighted the need for businesses to implement plans and solutions that enable continuity regardless of circumstances. Deploying solutions and technologies like digital and automated document collection, AI, and ML can support stability in remote onboarding. With regtech, online identity verification, and today’s top customer onboarding software, organizations can eliminate manual processes and face-to-face meetings, allowing them to maintain business continuity and ensure KYC compliance. 

Combat initial customer onboarding fraud attempts

The risk of cybercrime, fraud, and identity theft continues to rise in financial institutions. In 2020 digital fraud attacks against financial institutions increased by 109 percent. As a result, financial institutions are looking to phase out manual fraud mitigation solutions with support from emerging new technology. Studies show that every dollar lost to fraud costs financial institutions up to $3.78. Using tools like AI and alternative data sources to detect fraud patterns and inconsistencies saves companies millions and supports detection accuracy. 

In 2020 digital fraud attacks against financial institutions increased by 109%.

Today’s onboarding and identity verification tools have been critical for digital expansion, KYC compliance, and customer onboarding challenges. With the changing compliance and regulation landscape, businesses want to stay on top of their processes and ensure adherence. Last year AML and KYC fines reached$10.4 billion for financial institutions. With the sixth anti-money laundering directive in full force, financial institutions are bridging the gap between KYC compliance and consumer onboarding. 

Reduce customer onboarding challenges with the right technology 

Although customer onboarding challenges can vary from company to company, technology provides organizations with the boost they need to improve efficiency, enhance the customer experience, and minimize risk. Whether you’re dealing with an increased demand for digital processes or unexpected disruptions, incorporating customer onboarding solutions that embrace automation, AI, and ML into your workflow is essential.

Your organization and customers deserve a streamlined onboarding process from solutions like Urjanet’s identity verification platform to top-rated onboarding solutions. Contact us today if you’re interested in learning how automated access to consumer-permissioned data can reduce your customer onboarding challenges. Also, take a few minutes to check out some of our other onboarding resources below.



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About Honor Donnie

Honor Donnie is a Marketing Coordinator at Urjanet, with a passion for content creation. When she’s not at Urjanet, she can be found reading, cooking, and listening to great music.