By Gurpreet Singh, Solution Consultant at Azentio

In any domain or business, technology plays a crucial role when it comes to providing customers with a seamless and delightful experience. In the post-pandemic era, it has become more relevant and necessary for financial institutions to adapt advanced and emerging technologies to optimize their incumbent processes for customer acquisition and retention.

Striking the fine balance between ensuring a seamless customer onboarding experience and adhering to stringent compliance requirements is a major challenge faced by financial institutions (FIs) nowadays. This calls for advanced configurable solutions which are flexible and scalable allowing constant upgrades to meet the new customer demands and unexpected challenges that may arise during the onboarding process.

The new-age digital customer onboarding solutions leverage Artificial Intelligence (AI) technologies, enabling FIs to expedite identity verification, automated processing, data enrichment and real-time decisioning, thus improving business process efficiency.

There is a paradigm shift in FIs when it comes to adapting to the technological advancements over the last few years. Today’s FIs can blend numerous data points from third party sources into a single customer view which further translates to greater operational agility and resilience.

An improved onboarding experience for customers can result in more acquisitions, retention rates, referrals, and business revenue for FIs. It also helps them proactively fight financial crime and meet compliance requirements.

Let’s look at the key technologies that can streamline the customer onboarding process for financial institutions:

  1. Smart business process management and decisioning solutions that can augment various activities in the onboarding process, including providing flexibility to configure and maintain customer application journeys.
  2. Robotic process automation (RPA) complemented by cognitive technologies, can be broadly implemented across many manual activities carried out during the initial phase of customer onboarding. RPA can automate the straightforward, rule-based steps of an activity with OCR/ICR embedded, whereas cognitive technologies can automate the judgement calls and predictive steps.
  3. Contactless biometric technologies, having face identification, iris scanning and voice recognition features, have become a feasible alternative during the pandemic. Auto-identification of customers means less paper trails and administrative burden for FIs with swift onboarding processes for customers.
  4. Onboarding experience is also enhanced by the Natural Language Processing (NLP) technology which focuses on training machines to recognize human communication involving text and speech. It is also useful in locating and reviewing legal documents.
  5. Computer vision is another technology that trains machines to process and recognise videos and images, enabling customers to open accounts by using video calls or selfies. It enables zero manual entry extracting data out of image of customer documents accurately, which cannot only help in identification and compliance checks but also uplift the customer experience.
  6. Open Application Programming Interface (API) integration can facilitate information sharing via different sources like state database, credit bureaus, other third-party sources, etc. to aggregate the relevant customer details. This approach streamlines the onboarding process and also enables minimizing fraud with real-time validation of customer data.

Leveraging these technologies, Azentio’s Kastle™ Universal Banking Suite and Amlock™ Financial Crime Detection and Management Solution, come with some of the most advanced and flexible features to augment the customer onboarding process.

Let’s take an example of a customer applying for a loan on Kastle™ ULS and how he can leverage the solution’s digital lending capabilities and apply for a quick loan within a couple of minutes. As the varied terms and conditions are already configured as per customer segment in the solution, prospects applying for a new loan, can see the applicable terms and conditions, depending on the customer segment.

Amlock™, Azentio’s Crime Detection and Management Solution uses advanced analytics and machine learning (ML) models that enable real-time sanction / watchlist screening during customer onboarding.

It is true that the use of advanced technologies for client onboarding by FIs picked up steam during the pandemic. But the convenience and savings they have provided for FIs and their customers alike, will ensure that their popularity will remain intact long after pandemic situation is over.