The future of customer onboarding & KYC post-COVID is digital

Updated On : June 2020

For the last few months, banks, NBFCs and Microfinance Institutions have witnessed unforeseen challenges due to the response to the COVID pandemic. The finance industry is rethinking the future of digital banking, through rapid adaptation measures and a stronger focus on their digital presence as customers go online to access critical services.

The financial institutions are gradually recognizing the tremendous potential of digitization. Because of COVID crisis, we can see the rise of online banking activities and the decline of traditional branch banking activities. Customer onboarding process during COVID pandemic highlighted the need for the financial institutions to go digital over traditional paper-based processes.

The traditional onboarding process is a very tedious one that involves huge costs and customers' needs to follow a multitude of processes across various departments, including legal, credit and operational, customers making the process longer.

Digital customer onboarding helps the organizations with the agility to respond to changes at the speed of information. Financial Institutions using these solutions can sign up their customers, open their bank accounts, complete a loan procedure and their KYC within a few minutes.

Advantages of Digital Customer Onboarding

• Reduce Cost and Improve Compliance
• Streamlined and more efficient process
• Reduce Workflow of Financial Institutions
• Reduced time of KYC due diligence
• Saves time of the customer
• Seamless Onboarding process
• Digital onboarding help improve business and client relationships with a reduced turnaround time

The financial institutions must act now to adopt smart solutions like digital onboarding, digital banking, digital lending, mobile banking solutions, to prepare for the future. As business resumes, the financial institutions will have to work alongside a recovery strategy. Some banks and financial institutions have already started to adopt digital banking services and are redefining customer experience.

Nelito's Digital Customer Onboarding solution provides a seamless digital onboarding journey to the customers of banks and financial institutions by providing faster, easier access to banking services.