Integration Bank

By Loren Lubanga, Key Account Executive at Infobip Kenya

Until recently, opening a bank account meant having to go to a physical branch, meet in person with a bank representative and sign documents. However, with customers increasingly adopting digital channels to interact and engage with their banks, this is quickly becoming a less desirable way for banking and financial institutions to adopt this new approach.

More and more, traditional banks are forced to contact their customers through their preferred channels, such as SMS, WhatsApp or social networks. As a result, banks need to invest in digital solutions integrating relevant processes for retail, corporate and small and medium-sized enterprises (SME) banking.

In short, banks need to meet the needs of the modern consumer, and that starts with digital customer acquisition and onboarding. Onboarding is a critical part of a bank’s customer journey, and it needs to cater to the different demographics they serve and target.

Start with the first step

Starting with the initial application to open a bank account, banks must assess a customer’s application through a simplified and streamlined process. This process should be clear and precise and capture customer details through their preferred channel. If there is any change, all the details should be updated in real time, improving the customer experience.

The next step in the onboarding process is Identity Verification, where banks should leverage Know Your Customer (KYC) verifications, combined with application details on a single dashboard to form an end-to-end view. end of the type of customer they deal with. . By using digital solutions such as two-factor authentication, biometrics, facial recognition and video call solutions, the bank can cater to different demographics through different channels.

Once all customer analytics have been captured on a single view, predictive models based on customer trends, artificial intelligence (AI) and a risk-based approach can be used to make real-time decisions in application approval terms. Based on validated data, KYC checks ensure that banks’ approval and decision-making processes are accurate and efficient. Potential fraudsters can be flagged early in the process, saving the bank time, money and damaging its reputation.

Without paper

Another requirement of digital banking is to keep the process paperless. As we live in the era of digital banking, the use of digital solutions is preferred by customers, ensuring that banks maintain efficiency throughout the customer journey. Digital signatures replace physically signed documents, and one-time passwords via mobile devices or email have proven to be extremely secure, while simplifying the process and improving the customer experience.

Thus, digital onboarding creates an expectation among customers that the digital process will be seamless and should include digital signatures, eliminating the need to physically sign documents. As a result, the onboarding process can be reduced from days or weeks to minutes.

Finally, digital banking customers demand multifaceted products and solutions, flexible integration and activation, and accessibility at all times, without compromising security. For example, a retail customer might want a credit card and a savings account, while a small business owner might need a loan, as well as a deposit account. These products need to be accessible 24/7/365 to serve the digital economy.

Continuous investment in customer engagement

To move forward in the digital age, banks will need to continue investing in customer engagement solutions that allow customers to communicate with financial institutions through the channels of their choice. Over time, we can expect these experiences to be further enhanced and product offerings to expand as banks continue to be pushed to offer services outside of the traditional banking sphere, such as insurance.

When dealing with modern customers, banks need to recognize that customer onboarding is a journey, not a transaction. In this case, first impressions undoubtedly last. A bank’s initial interaction with a customer will determine the duration of this journey. Fast and smooth interactions will help alleviate customer financial anxieties, with the initial contact playing an important role in customer acquisition, onboarding, retention and relationship development.