Modern financial institutions must pay attention to multiple factors that influence user churn and conversion rates, including automated merchant onboarding processes which help build trust between sellers and banks, streamlining the entire process more efficiently while making the first steps of cooperation easier and smoother. Unfortunately, FinTechs and banks sometimes must part ways due to an unpleasant experience for their clients.
According to data collected, over 64% of banks have experienced an increase in revenues as a result of issues in their current onboarding processes, as these processes tend to be too complex and require an excessive amount of information – not all details required being covered during onboarding are necessary either.
FinTechs require a digital footprint for their business. This consists of their name, address, and billing details. Traditional onboarding can take too much time; automated merchant onboarding could even prove problematic. What can we do to streamline it all?
Strategies to Automate Merchant Onboarding Easier Centralize all operations in one digital space and treat it like a command center.
Be certain that your user interface (UI) and user experience (UX) are both intuitive and user-friendly for clients and business associates. The less they wonder about features or choices; there should be no misunderstanding over icons; making assumptions or becoming confused is never a good sign – the simpler your UI, the happier will be your team of customer success.
Implement the Know Your Customer (KYC) option. Merchants often find this process tedious as it involves verifying customer data. Automated onboarding can facilitate more flexible and efficient onboarding processes.
Implementing AML screeners is often tricky as part of onboarding your business and taking care of its needs from day one. Anti-money laundering (AML) procedures are mandated by both local and international laws and may differ between countries but remain essential over time. Screen against persons politically exposed (PEPs), sanction shareholders that abide by laws, and much more!
Artificial Intelligence (AI) and automation combine to offer significant savings across industries each year. Chatbots alone have been responsible for $174 billion worth of savings annually across all industries, which merchants should take advantage of by employing these innovative bots as resources to assist with everything from explaining to pointing out. Automation offers another solution; sending emails out to users who did not complete their onboarding process can keep churn low while asking why they didn’t complete it (perhaps there was an unclear question or they didn’t have time enough?). You could also question them about this – maybe there was something unclear in your onboarding process that prevented them from finishing – or they simply didn’t have enough time to follow all steps.
Include all essential elements of onboarding. Why is this necessary? Being aware of what can be automated is the key. By including all steps that are relevant and eliminating or streamlining those not necessary, you can reduce complexity until there’s nothing left for anyone to do.
Prescreen, identity verification (KYC), history check, lead creation, and prospect profile creation as well as price and quote quotation are essential parts of the business world. Also consider: prescreening, KYC identification verification (KYC), as well a history review on major shareholders of your prospective companies for compliance and security compliance as well as credit risk. You could even gauge customer sentiment to improve risk evaluation.
Establishing a process for businesses that do not fit into traditional categories is no simple feat, yet scoring systems may help identify companies that fall outside their intended realm of business due to reasons like the nature of business, finances or credit histories, etc. You could opt for manual onboarding rather than attempt to come up with rules which cover every non-standard merchant; alternatively, you could try classifying them.
Transfer and export data to merchants. Make sure your old and current business information is protected, while the software team knows about all documents and data you require for a transition software project. They can design an efficient solution to ensure a smooth migration.
FinTechs and traditional banks alike often encounter onboarding challenges when onboarding new customers.
Traditional merchant onboarding methods are a challenge due to requiring staff to manually transfer massive quantities of information from static merchant processing software (MPAs). Data must be entered manually to ensure completeness, leading to potential mistakes as well as being time-consuming and costly.
Automated onboarding technology reduces paperwork by automating its submission, cutting down on printing requirements. Submitting online makes the processing process quicker while automating can cut back significantly on paperwork requirements for all.
One challenge involves reaching digital native millennials who expect everything instantly. Automated data processing in the digital era could benefit these individuals as well; particularly in FinTech where Generation Y expects high-quality services and cannot wait that long for solutions.
Advantages of Digital Merchant Onboarding
Automating merchant onboarding digitally provides many benefits for both traditional banks and fintech; traditional banks can compete more effectively while fintech stays ahead in their respective fields.
Document handling and filling on-site is costly; however electronic KYC can reduce costs by as much as 90%, using automated verification processes instead of human review to save costs and enhance bank effectiveness – drawing more customers.
Automating paperwork allows you to streamline customer communication quickly and spend less time complying with regulatory requirements – leaving more time for business activities!
Digital onboarding enables businesses to generate consistent income from satisfied customers, turning them into loyal clients who opt for various financial products and services offered. It also presents cross-selling and upselling opportunities.
As the global payments market expands both in terms of complexity and size, merchant acquirers and their partners face new risks as they work to address fraud that has moved from physical environments into the CNP environment. At the same time, value chains for acquiring have become more complex with the rise of marketplaces and payment facilitators.
Understanding the risks a merchant is exposed to and how to reduce the burden in each situation allows you to effectively ensure security and speed. By employing automated workflows for monitoring risk exposure as well as KYC processes, you can accelerate the onboarding process for excellent merchants while simultaneously helping prevent accounts with issues from opening accounts.
Compliance can be tedious for both customers and clients, yet essential. Customers are excited but uncertain; similarly, onboarding serves as a stage that must be passed before moving forward to other exciting adventures.