How AI Can Enhance Fintech Customer Onboarding

The very first interaction between a customer and a fintech product, or any product for that matter, is crucial for setting the foundation of a business-client relationship. An unpleasant onboarding can be detrimental to the business.

It is estimated that more than 38% of customers abandon a fintech product at the very onboarding stage, thanks to the labor-rich, paper-work-rich, time-consuming processes. This is why in a digital era when businesses are gyrating towards a customer-centric business approach, seamless onboarding of customers is so significant.

AI-powered onboarding processes are gaining momentum across the fintech industry specifically for this purpose. The disruptive changes AI-powered solutions are bringing in are not just limited to cost reduction or enhanced customer experience, but also much more efficient and streamlined business processes.

So, how can AI aid in an optimized customer onboarding?

Before discussing the benefits of AI in customer onboarding, let’s see what are the challenges of customer onboarding in Fintech.

What makes the KYC process so hectic?

???? Collecting personal and financial data

???? Verifying data across government agencies

???? Account creation and maintenance

???? Compliance assurances post-onboarding

Challenges of the Onboarding process?

???? Regulatory compliance

???? Manual processing

???? Lack of personal connect

???? Data collection hindrance

???? Security assurance

Onboarding process automation with AI chatbot integration

AI-powered chatbots help in

???? Enhanced convenience

Elimination of manual processes, saves time and enhances customer convenience.

???? Added personalization

Each customer demand is unique and AI-solutions can give more personalized solutions tailor-made for their demands.

???? Hassle-free onboarding

Automated processes make onboarding a hassle-free process, not to mention the time saved, reduced overhead costs, and quicker processes.

???? Easy and quick Data extraction with optical character recognition technology

Optical Character Recognition or OCR technology coupled with deep learning extracts all necessary data just by scanning an ID image. The entire KYC can be completed without any or limited manual intervention.

???? Real-time tracking of compliance with Biometrics

Biometric technology is gaining traction in the fintech industry as a person’s fingerprint, iris-scanning data is unique in that it leaves no room for any kind of fraudulent activity.

???? Gamut of AI-based solutions

AI opens up a gamut of other solutions for seamless customer onboarding like customer risk detection and management, mitigate customer dropouts, reduced labor costs, and much more.