A Guide to Customer Onboarding for Banking

06 April 2018 Amelia Henderson Best practices

A comprehensive and efficient customer onboarding process forms a vital part of a bank’s compliance checks.With DueDil, banks can conduct customer identification checks, uncover historic company records and check for sanctions against potential clients.

Read on to find out more about Customer Onboarding for Banking, or see how DueDil can help your Client Onboarding processes.

What is client onboarding in the banking sector?

Client onboarding is the process a bank undertakes when bringing a new business customer onboard. Onboarding new clients involves gathering vital information on the customer and conducting identity checks to comply with KYC regulations.

Only when the bank has all the necessary documentation on the client can the customer open an account or begin a business relationship with the bank.

The key challenge of client onboarding for banking is providing a good customer experience whilst meeting compliance requirements and operating efficiently.

What is the client onboarding process?

Traditionally, the client onboarding process for banking involves multiple forms, paper files, manual compliance checks and in-person identification checks.

However, this process has long been considered archaic, time-consuming and a poor user experience. Meeting compliance and legal regulation is often the most time-consuming stage due to the vast number of documents and volume of data that needs to be collected and analysed.

In recent years, many banks have introduced new technology to significantly modernise and optimised their client onboarding process, creating greater efficiencies and a superior customer experience.

What are the benefits of improving customer onboarding for banking?

  • Digitising customer onboarding processes enables banks to future proof their operations and remain competitive in a crowded market.
  • Adopting a transparent and customer-centric client onboarding process provides an enhanced user experience which helps to boost customer satisfaction and ensure that customers do not switch to another bank.
  • Streamlining KYC onboarding improves efficiency and helps to speed up the process, meaning banks can successfully onboard more customers in a shorter space of time.
  • Updating your customer onboarding processes reduces costs by digitising slow paper-based processes.

How can you improve your client onboarding process?

1. Replace slow manual paper-based processes: Adopt automated and integrated systems such as the DueDil API to speed up data collection and access relevant documents with ease. Improve efficiency with a single view of a counterparty across multiple teams.
2. Deploy specialist teams: Assign new customers to specialist teams, creating one point of contact for efficiency and transparency. Specialist teams will ensure the onboarding process remains focused and doesn’t encounter timely delays.
3. Learn where the stumbling block is in your client onboarding process and optimise: Review your current customer onboarding process to assess where the main weaknesses are and learn at what stage most customers drop out of the onboarding process.
4. Give customers visibility of the process so they can track their progress: It is imperative that customers are not kept in the dark during the client onboarding for banking. Provide frequent updates during the customer onboarding process to keep clients engaged and ensure corporate business is not lost.

How DueDil can help

Automate onboarding
DueDil can be used to automate customer onboarding. for banking, allowing banks to streamline the process for new business customers and ensure efficiency and accuracy in the KYC process.

Monitor for risk
Banks can use DueDil to conduct thorough customer identification checks to uncover historical company records and sanctions against a customer.

Using the web application, or by integrating the DueDil API, banks can monitor their customers and be notified of any changes to their credit score, financials or ownership to ensure they are aware of any new potential risks.

Find new prospects
Using DueDil, banks can identify new and existing business customers that meet their ideal customer profile, and provide their sales and prospecting teams with rich and valuable data to inform their approach.