Business and commercial customer onboarding in banking and financial institutions is nuanced and complex.
It carries important regulatory and risk consequences for getting it wrong. It is also a frequent source of pain and frustration for clients.
Banks are often constrained. Siloed processes and teams coupled with fragmented infrastructure and complex policies make gathering vital client information and completing regulatory KYC checks a difficult and time-consuming process for everyone involved.
As a result, it takes banks an average of 32 days to onboard a new customer.
Handoffs between teams add to the time delays and detract from the client experience. Each client goes through around 8 different interactions during the onboarding process.
But it’s not just customer experience that is suffering, broken onboarding processes reduce growth in a challenging banking market while increasing costs and risk.
One study by Fenergo found that 36% of financial institutions have lost customers due to inefficient or slow customer onboarding, 81% identified poor data management as a root problem that lengthens onboarding times and negatively impacts customer experience, and 84% believe the client experience during the customer onboarding process adversely impacts the lifetime value of the client.
The process is broken.
The challenge today is for banks to transform customer onboarding and provide a good customer experience whilst also meeting compliance requirements and improving operational efficiency and effectiveness.
At a time when FinTech’s are completely transforming customer experience and disrupting traditional business models, banks cannot afford to wait to address the onboarding issue, after all a customer’s onboarding journey can create or crack the foundations needed for a successful long-term relationship.
Be part of the discussion
Join Artesian on 3rd October for an open discussion on the art and science of customer acquisition in commercial banking and hear the views of the industry’s leading executives on this critical topic.
Taking place at 08.30hrs at The Delaunay in London and chaired by Jeff Courtney, former Head of Portfolio & Planning at Metro Bank, this intimate breakfast is strictly by invitation only with all attendees being senior leaders in banking.
Following Chatham House rules, this discussion forum will be an exchange of ideas and experiences concerning the critical issues impacting customer acquisition over the next decade.
This is a must-attend event for stakeholders in customer acquisition (COO’s, Heads of Commercial Banking, KYC and Onboarding) from the UK banking community.
Not your average networking opportunity – Artesian’s breakfast forums are intended to foster conversation and tackle the most pertinent topics impacting customer onboarding and KYC.
To find out more and to request a place, please click here: Onboarding is Broken – Breakfast Forum.