Does your onboarding process mean smooth sailing or turbulent seas for your customers?

Does your onboarding process mean smooth sailing or turbulent seas for your customers?Banks may have moved on from toasters to great account rates, airmiles, and other perks to welcome new customers. But while those are enticing, a positive onboarding experience delivers a far more valuable payoff for both customers and banks.

Consider this: A 2017 article in ABA Bank Marketing estimated that an efficient onboarding process could improve new customer retention rates by 25%–50%, boost cross-sell campaign responses 1.5–2 times within the first 90 days of new account openings, and increase revenue from new customers by 35%–40%.

So, how are the majority of financial institutions creating, analyzing, and maintaining successful omnichannel onboarding strategies? We decided to find out. Between August and December 2017, we invited a select group of 77 senior banking and financial industry executives to participate in our survey on customer onboarding strategies in banking. The respondents were from global financial services firms with revenues ranging from under $250 million to over $1.5 billion.

Here’s what we discovered.

About this researchBetween June and December 2017, we polled 70 executives. Respondents were predominantly senior decision makers from the financial services industry at companies with corporate revenues ranging from under $250 million to over $1.5 billion. Here are the results.

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Asked how customers get in contact, 95% of the respondents reported that the telephone is still the most common channel, trailed closely by email (94%). However, in the past two years, newer engagement channels have trended sharply upward, with mobile apps increasing by 74%, followed by web (68%), social media (66%), and email (65%). During the same period, face-to-face meetings have decreased by 40%.

95%

94%

84%

68%

62%

31%

25%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Telephone, with customer service agent or interactive voice response

Email

Web

Mobile app

Social media

SMS

Chat/chatbot

Customers are old-fashioned… sort of

As customers continue to use phone, web, mobile-app, and in-person channels, the onboarding experience must be consistent, easy, and readily accessible across all of them.

Figure 1: How do your customers engage with you?

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Independence is key, but a little guidance helps

Figure 2: How significant are the following capabilities in determining customer satisfaction?

When we asked which capabilities were the most important to customer satisfaction, the results at first appeared almost contradictory. Self-service capabilities scored highest in importance at 92%, yet online customer support ranked just one percent lower. What gives?

Think about the last time you filled in an online application. Perhaps three-quarters of the way through you came to a question you weren’t sure how to

answer. If the bank made it easy to find a number to call, or a real-time or video chat option to access, and you received an immediate answer, you undoubtedly completed the application. But if you couldn’t easily find a resource and a quick answer, in all likelihood you gave up.

The takeaway here is that the right onboarding process eliminates abandoned opportunities.

Self-service capabilities through digitized channels

Online integrated customer support

Uni�ed, omni-channel onboarding

Real-time payment processing

Near real-time product origination

Transparency and proactive updates on product origination

92%

91%

87%

86%

82%

78%

70% 75% 80% 85% 90% 95%

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Legacy systems and other impediments

When asked what factors were hindering the onboarding experience, 87% of respondents blamed clunky legacy systems, while 69% cited fragmented data that thwarts real-time analysis. Other problem areas included multiple customer touch-points that created unmanageable complexity (60%),

fragmented middle- and back-office processes and siloed service delivery (57%), and shifting regulations and technology (55%). Interestingly, only 32% had difficulty leveraging analytics within their customer care operations, which brings us to…

Legacy systems, manual processes and/ or interventions

Fragmented data and limited scalability do not support real time insights

Multiple customer touchpoints that create unmanageable complexity

Disintegrated middle and back o�ce processes and siloed service delivery

Shifting regulations and technological developments

We are unable to leverage analytics within customer care operations

87%

69%

60%

57%

55%

32%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

87%

69%

60%

57%

55%

32%

Figure 3: What specifically gets in the way of providing a unified, omnichannel customer onboarding experience?

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Analytics as an enabler

Asked how they are leveraging analytics within customer care, respondents reported that their greatest successes were using analytics to drive customer interactions (51%), predict customer satisfaction and sentiment (42%), and identify the personas of callers (and repeat callers) (35%).

Two other areas were mentioned that deserve a closer look: 18% of respondents are using analytics to figure out why customers leave one channel and use another, and the same percentage are using analytics to identify ways to reach out to customers who have not made contact at all. Clearly, the 32% of respondents – as mentioned above – who are having trouble with analytics need to address this situation.

Drivers of customer contacts

Predicting customer satisfaction, sentiment and/or e�ort

Personas of callers (and repetitive callers)

We are unable to leverage analytics within customer care

Why customers break from one channel and use the other

Identifying proactive interventions for customers who have not even contacted

51%

42%

35%

31%

18%

18%

0% 10% 20% 30% 40% 50% 60%

Figure 4: How effectively are you leveraging analytics within customer care to understand the following?

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Analytics as an enabler

What’s on the onboarding wish list of these financial institutions? Primarily, banks want upgrades to their onboarding capabilities, including solutions with interfaces that can be used on multiple devices (62%), a single source of reusable data (60%), and self-service portals (56%).

And although 70% of those surveyed expect to tap in-house expertise to improve their customer onboarding process, nearly half are also turning to an IT products and services vendor, while 39% intend to hire a consulting firm to find a solution.

Drivers of customer contacts

Single source of data with reuse capabilities

A self-service portal

Scalable design

Integrated imaging capabilities such as Intelligent Character Recognition (ICR),

Optical Character Recognition (OCR)

62%

60%

56%

42%

35%

0% 10% 20% 30% 40% 50% 60% 70%

Figure 5: Which of these capabilities do you think would improve your customer onboarding process?

Priorities are complicated

We asked respondents to tell us their top operational priorities. In the end, there was a tie: Creating a unified onboarding experience, on the one hand, and simplifying and standardizing operations, on the other, appear to be equally weighted priorities at the moment.

But fulfilling these needs can be complicated. A full 69% of respondents were frustrated that meeting their operational objectives continues to depend on manual processes, and 68% stated that their efforts have been thwarted by the sheer complexity of managing multiple customer touch-points.

Creating a uni�ed "client-centric" on-boarding experience

Simplifying and standardizing operations

End-to-end automation and digitization

Managing and mitigating risk

Straight through processing

71%

71%

56%

55%

21%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Figure 6: What are your top operational priorities (objectives)?

© 2018 Genpact, Inc. All rights reserved.

About Genpact

Genpact (NYSE: G) is a global professional services firm that makes business transformation real. We drive digital-led innovation and digitally-enabled intelligent operations for our clients, guided by our experience running thousands of processes for hundreds of Global Fortune 500 companies. We think with design, dream in digital, and solve problems with data and analytics. We obsess over operations and focus on the details – all 78,000+ of us. From New York to New Delhi and more than 20 countries in between, Genpact has the end-to-end expertise to connect every dot, reimagine every process, and reinvent companies’ ways of working. We know that rethinking each step from start to finish will create better business outcomes. Whatever it is, we’ll be there with you – putting data and digital to work to create bold, lasting results – because transformation happens here, at Genpact.com.

For additional information contact, banking.solutions@genpact.com and visit, www.genpact.com/what-we-do/industries/banking-financial-services

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Conclusion

By deploying an end-to-end onboarding solution that delivers an omnichannel

customer interface with integrated third-party data, banks can radically improve

the customer experience during application process. Implementing dynamic

workflow with cognitive computing and intelligent automation in the back

end can ensure that improved customer experience continues into the product

fulfillment phase as well. Finally, by using smart analytics to proactively

identify customers who are at risk, banks can also ensure that customers receive the right level of support to turn them into active and satisfied users.

There’s no question that banks have a lot to gain by developing superior omnichannel customer onboarding processes. Doing so will help them not only better serve their customers, but also reduce operating costs, bolster customer satisfaction, and increase share of wallet.