Customer Onboarding Digitalization in the Financial Industry

19 Jul 2022 Phintraco

Customer Onboarding Digitalization in the Financial Industry

Nowadays, digitalization appears to be a requirement for every industry. The transition in people’s lifestyles to an instantaneous lifestyle has forced every industrial sector, including the financial industry, to begin making digital innovations to accelerate their services to consumers. However, because the financial industry is a complex business that provides a wide range of services, separate parts of the service must be managed.

Digital Onboarding: Banking Service Innovation

Digital onboarding is a financial industry innovation that makes it easy for its users. In financial industries such as banking, digital onboarding refers to registering for an account via a website or a mobile phone application. This means that all processes, such as opening a savings account, will be done digitally, from the beginning to receiving an ATM card. Digital onboarding is still in its early stages, but that doesn’t mean it won’t catch on. Digital onboarding presents a significant opportunity for the financial industry because it improves the lifestyle of Indonesians, including the millennial generation. customer onboarding digitalization

Digital Onboarding Makes Banking Customers Easy to Access

Today’s generation, millennials, are extremely technologically savvy and actively interact with digital media almost daily. This is the most influential behavior; even middle-class young people are very well adapted to technological advances. Therefore, this is an excellent opportunity for digital banking to simplify the customer onboarding process for potential new customers by utilizing digital onboarding. But what is the future potential of digital onboarding? Here’s how the banking industry can hold opportunities through digital onboarding: customer onboarding digitalization

  1. Accelerating Contactless Payment System

Changes in government spending during the Pandemic also aided the expansion of contactless payment systems or digital transactions. As a result, people who previously only purchased lifestyle items through e-commerce are now beginning to shop for basic necessities. Furthermore, contactless payment has become a requirement because it is thought to provide convenience and convenience for transactions. As a result, even after the post-Covid-19 era, contactless payment will be a new way to transact.

  1. Simplifying Digital Account Opening

With digital onboarding, opening a savings account becomes faster, easier, and more seamless, providing greater convenience to prospective banking customers even if they live in remote areas that are far away and not affordable for conventional banking.

  1. Combating Customer Data Security Threats

Although digital onboarding is known to make banking customers’ lives easier, it can pose a cybersecurity challenge, particularly in customer identity verification. To achieve contextual identity verification, combining traditional identity verification methods with advanced analytics is the best approach. This will enable banks to make security decisions based on real-time customer information, reducing fraud.

That explains how the banking industry can benefit from digital onboarding. Therefore, it can be concluded that the digitalization of customer onboarding is important for the financial sector, especially banking, but it must be maximized by using a qualified system. Phintraco Technology, a subsidiary of the Phintraco Group, is an IT infrastructure provider. Phintraco Technology is a provider of mobile app shielding, Multifactor Authentication, and Electronic Signature solutions that allow the banking industry an easier customer journey while prioritizing customer data security when doing digital onboarding.

customer onboarding digitalization

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