The FinTech sector continues to expand and evolve — and as it does, a scalable client onboarding process becomes all the more critical.
On one hand, the growing popularity of digital financial services has led to a surge in client volumes. To put this in perspective, 70% of banks see FinTech partnerships as important to their 2023 strategies, helping to offer value-added services to customers.
At the same time, FinTech providers are up against stricter compliance requirements. As banks prioritize rooting out fraud, FinTech providers must establish a robust Know Your Customer (KYC) and Anti-Money Laundering (AML) framework to assess and avoid risk. And this framework needs to apply the same degree of scrutiny and due diligence to each client.
Is your current FinTech onboarding process ready to meet these demands? The easiest way to answer this important question is by asking yourself the following questions.
Do you have a clear map of the client journey?
Bottlenecks can happen anywhere in the FinTech onboarding process, with examples ranging from handling clients’ custom requirements to difficulties gathering client data.
Looking at every part of the client journey is a valuable exercise as it can help you see where these slowdowns are. For instance, journey mapping and conversations with stakeholders may reveal a slowdown in a bank’s legal department due to compliance requirements. Providers can then prioritize the standardization and optimization of this part of the FinTech onboarding process and help accelerate implementation timelines.
Is every step of the onboarding process clearly documented?
A lack of standardization in the way clients are onboarded can create confusion and frustration in any industry. But for FinTech providers, an inconsistent client onboarding process can translate into varying levels of due diligence that raise the potential for risk and legal ramifications. A well-documented client onboarding process sets the right standard. FinTech providers have the framework to create uniform client experiences, while providing their teams with a clear understanding of their responsibilities. This helps keep everyone on the same page and reduce any friction as the baton is passed.
Is the onboarding process optimized to reduce manual tasks?
The majority of FinTech solution providers rely on spreadsheets to manage their client onboarding process. While a familiar and easily accessible option, this approach to onboarding relies heavily on manual updates that are time-consuming and prone to error. These inefficiencies can become increasingly burdensome with a growing client base. Trading in spreadsheets for a centralized, automated client onboarding solution eliminates the need for manual data entry and modifications while enabling enhanced collaboration and personalization.
Is there a way to stay updated on compliance measures?
When FinTech compliance measures become outdated, it can result in incorrect verification procedures, improper risk assessments, and missed regulatory steps. Yet, only 27% of FinTechs have a dedicated in-house compliance officer. Establishing a dedicated compliance team can help you stay informed about regulation changes at the local, national, and federal levels. With a deep knowledge of the industry’s regulatory landscape, these compliance experts can provide guidance on how to keep the FinTech onboarding process aligned with current compliance measures.
Are robust data security measures in place?
Research shows that financial service providers are 300 times more likely to be the target of a cyberattack than businesses in other industries. And it makes sense, as cybersecurity threats tend to be financially motivated. To this end, FinTech providers need to have protocols in place that ensure the secure import and storage of client data to their system. Clients will have assurance their sensitive data is safe, which helps to build trust and credibility with your organization at the start of a new client relationship.
Have you sought feedback from customers who have completed the onboarding process?
Onboarding completion percentage is a useful metric for measuring client satisfaction with the FinTech onboarding process. But it’s just as valuable to talk with clients that do complete the process. By conducting surveys and interviews, you can gain insights into any pain points clients may have experienced in the process and where there’s room for improvement. This feedback can also help you identify trends in client preferences, helping you create a more customer-centric onboarding process that gives you an edge.
Evaluate your current FinTech onboarding to plan for the future
So is your FinTech onboarding process future-proof? We hope the exercise above has helped you answer that question. And if there’s still work to do to get to that point, an automated client onboarding solution like Setuply can help you reach scalability goals.
With Setuply, FinTech providers can automate repetitive tasks, facilitate document collection, and ensure compliance with industry regulations — including the secure handling of client data. While expediting the onboarding process, our solution also provides valuable insights and analytics that helps you pinpoint areas for improvement so you can stay ahead in a fast-paced market.
Ready to start your Setuply journey? Request a demo today!