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SetuplyJul 25, 2023 11:00:00 AM4 min read

FinTech Client Onboarding: 10 Best Practices You Need to Know

The significance of good FinTech client onboarding can’t be overstated. A seamless, efficient, and client-centric experience positions FinTech providers to stay ahead in a very competitive arena and establish a foundation of client loyalty and trust.

But as Appian CTO Michael Beckley noted in a recent TechCrunch article, “effective onboarding is FinTech’s Achilles heel.” While FinTech providers feel the pressure to deliver a fast and intuitive onboarding experience to a digitally sophisticated audience, they’re operating in a highly regulated environment where non-compliance is costly.

Here are 10 steps providers can take to enhance the client experience from day one and make FinTech client onboarding more enjoyable for their clients and themselves.


1. Digitize your FinTech onboarding as much as possible

Dealing with manual paperwork in client onboarding is time-consuming for you and inconvenient for clients. Digitizing onboarding documentation and communications saves you time and costs, while creating a comfortable experience for clients used to operating in a digital environment. It also creates an infrastructure that is easy to scale as your client base grows.


2. Establish a comprehensive compliance framework

Streamlined compliance in client onboarding not only creates peace of mind for FinTech providers; it bolsters the confidence clients have in the tech’s security and legitimacy. Balancing speed with compliance, you can use automated systems and data analytics to confirm client identities, evaluate risk levels, and be alerted to any suspicious activity. You’ll also want a system in place that makes it easy to generate compliance reports to demonstrate that proper Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures were followed in the onboarding process.


3. Personalize the experience to make clients feel valued

Personalized onboarding experiences have the power to create a positive and lasting impression on clients. Utilizing standardized processes as a baseline for consistency, FinTech providers can gather data about a client’s preferences and financial goals to customize workflows/dashboards and offer targeted product/service recommendations. Personalized welcome messages and ongoing support communications also add value to the client experience.


4. Provide clients with self-service features

In an increasingly self-service world, it only makes sense to provide clients with that same degree of convenience in FinTech onboarding. The ability to upload documents, manage personal information, provide e-signatures, and schedule meetings with their onboarding specialist are just a few examples of features that make clients feel more in control of their onboarding experience. Even better when all these features are available in one platform.


5. Implement robust security measures

Aside from being a regulatory requirement, FinTech client onboarding security is a critical business imperative. Clients expect FinTech providers to have an infrastructure in place that will keep their sensitive data safe from unauthorized access and sophisticated hackers. To enable this protection, implement a multi-authentication code for client access, use strong encryption protocols for when data is in transit and at rest, and limit access to data in encrypted databases or servers.


6. Streamline client data collection

Client data collection can be notoriously difficult for FinTech providers. Alongside regulatory requirements and data sensitivity, clients don’t always have complete or consistent data, which can lead to gaps or inaccuracies that onboarding reps have to resolve. Investing in a tool that is able to securely import client data in multiple formats, from multiple sources, and then verify, transform, and deploy that data to your solution is a big time-saver for your team.


7. Maintain transparent communications at every stage

When a FinTech provider establishes clear, open lines of communication with clients, it can help build trust, manage expectations, and reduce friction. Clients should be able to see the real-time progress of their onboarding process and know if an action is required of them. At the same time, be readily available to provide timely support to clients and take in their feedback to not only improve their onboarding experience, but future ones.


8. Be ready for the multiple subproject scenario

FinTech onboarding often involves multiple subprojects that are handled by different groups at an organization that use different tools. This creates an inconsistent client experience, hinders group collaboration, and makes it nearly impossible to measure performance. A positive client onboarding experience is best accomplished with a shared set of values and a shared list of tools that empower consistency and active collaboration.


9. Train your staff on standardized onboarding measures

Every client should go through a standardized, well-defined onboarding process. While the right technology can support these efforts, it’s just as important to make sure your staff is up to speed too. Create a well-structured training program that covers all aspects of the onboarding process, from technical procedures to regulatory compliance. Documentation should be provided for every onboarding stage as a point of reference during the training process as well as for future use.


10. Don’t stop there – optimize!

Considering the impact onboarding has on attracting and retaining new clients, FinTech providers should always strive to improve the experience. Regularly review feedback from clients and the onboarding staff to pinpoint areas where you could make changes. At the same time, monitor key KPIs like time-to-onboard and client satisfaction scores. You can use these as benchmarks to measure the success of improvements you make.

Streamline your FinTech client onboarding with Setuply

FinTech providers face unique challenges when onboarding client firms in the financial space. Our all-in-one onboarding automation platform addresses the complexities and regulatory requirements that the FinTech industry faces, making the onboarding process seamless and efficient for everyone involved. See for yourself - request a demo today!